Platforms Shifting from Retail to Institutional Investors
Platforms Shifting from Retail to Institutional Investors with Chris Ganan, Co-Founder & President of AssetAvenue; William Skelley, Founder, Chairman & CEO of iFunding; James Herbert, Co-Founder & President of LendingHome; Dan Miller, Co-Founder & President of Fundrise; Jilliene Helman, Founder & CEO of RealtyMogul; and moderator Ethan Penner, Professor at USC Marshall School of Business.
This panel consisted of AssetAvenue, Fundrise, iFunding, Lending Home, RealtyMogul and was moderated by Ethan Penner from USC Marshall School of Business. The biggest challenges in shifting from retail to institutional investors include access to institutional quality deal flow, the speed of educating investors in the space, and slow release of regulatory changes. The panelists generally thought that the bidding model doesn’t work for real estate because real estate is not as homogenous of a product as consumer loans or small business loans. In terms of reaching scale, the key will lie not just in winning institutional capital, but also being able to go through a down cycle. The market isn’t large enough for secondary transactions, but there will be one in 12 months. The panelists also expressed their collective goal in helping to make real estate investment available to all investor types and allowing every qualified borrower to get access to capital.