In this Issue of C.O. Local BUZZ Wealth Weekend…

CrowdFunding Articles:

💵 Crowdfunding: A New Way to Finance Your Projects

💵Investment Crowdfunding: What it Means, How it Works, Benefits

📰Business owners and aspiring Entrepreneurs CHECK THIS OUT

🏘️ Real Estate News

📰Central Oregon Market Report | April 24, 2024

🏘️ Newest Central Oregon Listings for Sale

📰Business News

🚙Bend-based overland vehicle maker EarthCruiser closing down

🍽️New sushi place going in at old Rockin' Dave's space

📰🥇The Great Greek Mediterranean Grill at Reed South among winners in Hottest New Restaurants in Bend

📰Final phase of Reed South project includes new market

📰Westmount Building welcomes Back Porch Coffee Roasters and Bontà Gelato to Redmond

📰Westmount - Residential Condos for Sale

💹Market Pulse: A Comprehensive Overview of Stock and Commodities Trends

Crowdfunding: A New Way to Finance Your Projects

By Lisa Landi

Crowdfunding has revolutionized the way individuals and businesses raise capital for their projects. By gathering small amounts of money from a large number of people, crowdfunding offers a viable alternative to traditional bank loans, especially for those who may not meet stringent lending criteria.

What is Crowdfunding?

Crowdfunding involves raising funds for a specific project, cause, or donation through contributions from numerous individuals over a short period of time. This method has gained popularity for its ability to support creative, innovative, and socially impactful projects that may struggle to secure financing through traditional means.

Types of Crowdfunding

1. Donation: People contribute funds without expecting anything in return.

2. Reward: Investors may receive rewards or equity in the project they support.

3. Peer-to-peer lending: Involves providing a loan with fixed terms and returns.

4. Equity: Investors receive equity in the company seeking funding.

Benefits and Drawbacks of Crowdfunding

Pros:

• Minimal risk for startups

• Effective marketing tool

• Access to a larger pool of potential investors

Cons:

• Risk of failure due to poor marketing

• Low success rates

• Potential for intellectual property theft

• Time-consuming process

• Costs associated with crowdfunding platforms

• Difficulty attracting serious investors

While crowdfunding offers numerous benefits, it is important to consult with a financial advisor to determine the best financing option for your specific circumstances.

In conclusion, crowdfunding has opened up new avenues for funding projects that may have otherwise struggled to secure financing. Whether you are looking to launch a new business, fund a creative endeavor, or support a cause, crowdfunding can be a valuable tool in your financial toolbox.

Stay tuned to "Weekend Wealth" for more insightful articles to boost your financial knowledge and empower your financial decisions. Your financial future starts here!

Investment Crowdfunding: What it Means, How it Works, Benefits

By James Chen Investopdia

Updated January 11, 2024 Reviewed by Andy Smith Fact checked by Katrina Munichiello

  Equity investment crowdfunding is a way to source money for a company or project by soliciting many backers, each investing a relatively small amount while typically using an online platform. In return, backers receive equity shares in the company.

 Understanding Investment Crowdfunding

Anyone can put money into a crowdfunding offering. Investment crowdfunding is unrestricted if you're an accredited investor and, if you're not, has limits on how much you can invest based on your income or net worth. In 2016, final rules issued by the Securities and Exchange Commission (SEC) for the Jumpstart Our Business Startups Act (JOBS Act) in the U.S. allowed for a wider scope of investors to invest via crowdfunding once the regulatory infrastructure was in place to do so.

U.S. Securities and Exchange Commission. "Final Rule: Crowdfunding." Page 7.

Companies or entrepreneurs can solicit crowdfunding for equities, debt, and real estate investments. Risks include the potential loss of your whole investment, lack of liquidity since crowdfunded shares typically can't be resold easily, and the fact that your shares are relatively diluted and can be further watered down should more funding rounds occur.

Equity investment crowdfunding

You can use equity investment crowdfunding to put capital into companies, usually early-stage firms, and receive shares in them. Using online platforms, companies describe their business plans to capture your interest. You can spend a range of amounts, each with a gradation of percentage stake in the firm. As with regular stocks, the value of these shares goes up should the company do well. However, your equity interest comes with risk, given the relatively unpredictable prospects for startup firms.

Debt investment crowdfunding

Investment crowdfunding can also be done to exchange loans for equity stakes or interest income. You can engage with a large group who act as microloan providers in a debt investment. Through the platform you use, you'll review the purpose of the loan and the terms, including the interest rate, the loan's length, and the borrower's estimated credit rating.

Borrowers may seek this financing when traditional borrowing is too costly or not an option. Entrepreneurs typically have found seed money to start a new business by taking loans from banks, family, and friends or offering equity ownership in return for investment from family and friends or angel and venture capital investors. Investment crowdfunding enables a startup to seek relatively small investments from many backers when other fundraising options are unavailable or cost too much. As a lender, you'll receive an interest rate typically higher than other debt instruments because of the credit risk of lending this way. You can, however, mitigate this risk by spreading your microloans across a range of entrepreneurs, projects, and companies.

Real estate crowdfunding

This method allows you to collectively pool money with many others in real estate projects through online portals. You contribute a smaller amount of money toward a property or development project and, in return, potentially earn a share of the profits from rental income or property sales. This approach allows non-accredited investors and those with less capital to participate in the real estate market, where investing traditionally requires a great amount of money or borrowing. This can also be a way to diversify your portfolio into real estate.

Popular Crowdfunding Platforms

One well-known platform for equity crowdfunding is FundersClub. The online platform supplies a curated list of equity crowdfunding investment opportunities. Typically, these are startups and early-stage companies. FundersClub says it vets each investment opportunity, with just 2% of those applying making it onto the site.

Another noteworthy platform is StartEngine, which in May 2023 acquired SeedInvest.3 The platform allows both accredited and non-accredited individuals to invest on its site.

Microlending platforms such as LendingClub and Prosper allow for crowdfunded debt financing where, instead of owning part of the company, as with some forms of debt crowdfunding, you become a creditor and receive regular interest payments until the loan is repaid.

 Investment Crowdfunding Benefits

Equity, debt, and real estate investment crowdfunding can be risky, but investors can diversify their money across numerous choices. It can be a way for individuals to support a startup they feel connected to, share their values, or simply look particularly promising. Since the buy-in can be very small for an equity stake (ordinarily, the company can set the terms), the barriers are low for individual investors. This can also be useful for learning about startup investing, debts, and real estate, depending on the platform you use.

The best investment crowdfunding offers several advantages and disadvantages for investors and those raising capital. For investors, benefits include starting with a small amount, potentially earning above-average returns, and gaining more investment transparency. Meanwhile, disadvantages are risks of failure, fraud, doubtful returns, and lack of liquidity.

For those raising capital, crowdfunding provides a quick way to raise financing with no upfront fees, helps test the market demand, and increases exposure. Potential disadvantages can include a low success rate, the time allocated to sourcing funds, and giving up equity in the project or firm.

Pros and Cons

Pros

• Small initial investment and potential for high returns for investors

• Often more transparency for investors than other investment vehicles

• Quick method to raise funds for those sourcing capital

• For those raising capital, crowdfunding can serve as market demand validation 

Cons

• High risk of failure for fraud for investors

• Often lack of liquidity for investors

• Generally low success rate and time-consuming for those raising capital

How to Get Started with Investment Crowdfunding

To get started with investment crowdfunding, first research the different platforms available. Choose a reliable crowdfunding platform that aligns with your investment interests. Create an account and thoroughly review the investment opportunities presented.

As an investor, it is vital to conduct due diligence. Understand the business model, management team, and risks involved. Decide on the amount you're comfortable investing, considering the annual limit based on your income and net worth for non-accredited investors. 

Once you select a project, follow the platform's process to make your investment. Regularly review your investments and the company's progress. Remember, crowdfunding investments can be risky and illiquid, so it is vital to invest only what you can afford to lose.

Can I Trade My Crowdfunding Investment Shares?

No. Unlike traditional investors, crowdfund investors can't trade shares whenever they wish. These shares are often subject to holding period restrictions and may only be sold under certain conditions. The secondary market for them is not very developed, so finding a buyer can be a challenge.

How Does Real Estate Crowdfunding Work?

Real estate investing is a major part of the sector for investment crowdfunding and works like equity investment crowdfunding. Real estate crowdfunding enables many investors to pool their funds for property development or real estate projects. These projects may include different types of residential and commercial developments.

Can I Withdraw My Investment in a Crowdfunding Investment?

It depends on the platform's policies. Typically, though, once you invest in a crowdfunding campaign, it cannot be withdrawn.

The Bottom Line

Crowdfunding investing has grown significantly since 2016, when regulations lowered the bar for access. Noteworthy benefits include this lower barrier to entry for both businesses and investors, the potential for high returns, and enhanced market visibility. The cons are related to the risk of failure, the potential for fraud, and uncertain returns. As the sector evolves, stakeholders must balance these factors to make informed decisions.

Stay tuned to "Weekend Wealth" for more insightful articles to boost your financial knowledge and empower your financial decisions. Your financial future starts here!

Business owners and aspiring Entrepreneurs CHECK THIS OUT. 

By CJ Connell 

(Financing business growth under the new laws that enable businesses to raise up to $5 million dollars a year directly from the public over the internet.)

The slight pullback in 2023 of businesses raising capital from regulation crowdfunding, RegCF, appears to be turning around in Q1 of 2024 according to Woody Neiss, a principle at Crowdfunding Capital Advisors that tracks all the deal flow information on RegCF offerings in the US. 

As of March 19, 2024, nearly 7,000 companies (issuers) have raised over $2.3 billion dollars from over 8,300 offerings in the US since the inception of Regulation Crowdfunding in May of 2016.  Creating or supporting 310,000 jobs in 1800 cities across the US bringing an estimated $6.8 billion into local economies annually. 

Of particular note; Compared to traditional financing channels of investment banks and venture capital, women and minorities are benefiting tremendously, recent analysis indicates 41.7 % of deals went to firms with at least one founder being a woman or minority, this compares to only about 2% receiving funding through traditional channels.  

For more insightful articles check out CJ’s Substack

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Central Oregon Market Report | April 24, 2024

by Reed Melton

Inventory growth in Central Oregon continues, and I will compare some national numbers to what is happening locally for perspective. Mike Simonsen, the CEO of Altos Research, posts a weekly video about national market trends, reporting 31% more inventory nationally this week than in 2023. Nationwide, more sellers are coming to market than at any point in 2023, even though inventory is still relatively low. The 30-year fixed-rate national average for a conventional mortgage is 7.38% this morning, up from 6.58% this week last year. Pending sales nationwide reached an all-time high for the median price this week. Altos Research produces the Market Trend Reports I share on my website, where all ten Central Oregon zip codes are listed.

Deschutes County inventory was heavily constrained last year, and many sellers who sat out 2023 are listing their homes this spring. This week in 2023, there were 523 single-family listings in Deschutes County, while this morning, there were 788, an increase of 50.67%. The daily flow of new listing announcements in the Realtor backchannels is more fire hose than garden hose, and I also have a new Southwest Bend listing to announce next week. 

This week shows 73 pending sales in Deschutes County, down only two from last year. The median price was 689k, and the average was 927k. This week's pending sales in 2023 had a median price of 735k and an average of 837k. Fifty-four homes sold this week at a median of 676k and an average of 857k. Last year, sales were up slightly at sixty-five, but the prices were down, with a median of 602k and an average of 720k.  

While market activity is robust by recent measures, it is not equal across all segments. Attractive, well-priced properties are moving quickly in Deschutes County, with the median pending days at fourteen and the sold days at sixteen. The median days on the market for active inventory is forty. I have heard some agents concerned about listings languishing despite price drops and robust marketing, most likely attributed to higher borrowing costs. There is little doubt that the housing market today is challenging from many perspectives. 

Crook County inventory finally reached 120 listings this week, with eleven pending sales and six closed transactions. This week last year, there were 107 active listings, twelve sales, and three closings, so the county reflects similar activity to 2023. The median days on the market for pending sales was twenty-eight, with closed sales at fourteen.

Jefferson County inventory increased to 80, with one pending sale and six closed transactions. The pending sale was an investor opportunity for $160,000 on the market for only three days. The six closed transactions, with a median price of $412k, were listed for a median of ninety-four days. 

 Single-family home sales in Deschutes County year-to-date are 847, a 6.1% increase from the year-to-date 2023 sales of 798. However, the median sale price of 680k is a 10.4% increase from last year's 616k, and the average price of 827k is a 9.7% increase from 2023's 754k. 

On the high-end, sales this year-to-date above $3M increased two to Six, while the median sale price is down slightly at $3,250,00 from $3,316,120. The average sale above the $3M mark is up slightly at $3,290,833, an increase of $5,001. This morning, twenty-nine homes above $3M are available, with the median at $4,100,000 and the average at $4,961,517. Sales of available inventory in the higher price points could skew 2024 sales in this segment up significantly, or sellers need to reduce the asking price. However, with five pending sales in the last month at this price point at a median list price of $3,850,000 and an average of $3,685,800, buyers so far are stepping up for these unique opportunities. After touring many higher-end homes recently, there is little question that the available inventory above $4M is in a class of its own. 

No matter your budget, I put the time into learning all segments of the Central Oregon housing market, and I look forward to sharing my knowledge to help you reach your goals. Contact me with any questions you have about our challenging market. 

Click here for the full report.

Newest Central Oregon Listings for Sale

Sponsored By North Empire Storage Center

Bend-based overland vehicle maker EarthCruiser closing down

Bend-based overland vehicle maker EarthCruiser announced Wednesday it is shutting down after 16 years in business. The final day of operations will be Thursday.

The company cited "changing market dynamics and economic challenges" as reasons why it cannot keep the business going. It did not indicate how many employees would be affected.

"Our journey over the past years has been extraordinary. We are incredibly grateful to our loyal customers, dedicated employees, and industry partners for their support and trust in our brand," Lance Gillies, EarthCruiser CIO and Founder, said in a statement. "Although this decision marks the end of an era, we are proud of our legacy and impact on the world of travel, automotive innovation, and overlanding. We hope our vehicles, our customers, and their stories will continue to inspire the adventurous spirit in all of us."

The company’s product line includes the EXP, FX, and Terranova models, as well as the recently unveiled GMC HUMMER EV EarthCruiser Upfit.

EarthCruiser said it is working on liquidation plans.

The Great Greek Mediterranean Grill at Reed South among winners in Hottest New Restaurants in Bend

The Great Greek’s seemingly casual storefront on the east side of Bend is more than a quick meal. The chef prepares orders for each customer based on recipes rooted in this franchise’s Greek family’s heritage. Grilled steak souvlaki arrives with beef you could slice with a fork, marinated in spices of the region and paired beautifully with garlicky feta fries. The plate is balanced with refreshing tzatziki, chewy pita bread, and a lightly dressed side salad with a Greek dressing free of vinegary bite. Its popular pita-packed gyro may be the best in town.

Final phase of Reed South project includes new market

Project name: Reed South

Address: 21185 Reed Market Road, Bend

Developer: Empire Construction & Development LLC

Architect: Steele Associates Architects, LLC

General contractor: Empire Construction and Development with a variety of different subcontractors. About 50 workers on the site.

Cost of the project: About $15.2 million.

Project details: The majority of the project is finished and operational. Gas station and convenience store Reed Crossing Market is a new, rebranded store by the owners of Expressway at Reed Market Road and 15th Street. Once the gas station-convenience store market is finished, the Reed South project will be complete.

Connor Stephenson, lead property manager with Empire Construction & Development, said the structure for the new gas station and convenience store should be finished in May.

Westmount Building welcomes Back Porch Coffee Roasters and Bontà Gelato to Redmond

We are excited to announce that Back Porch Coffee Roasters and Bontà Natural Artisan Gelato will be coming this summer to Westmount in Redmond!

Stay tuned for updates on the project and opening dates!

While we welcome our great new businesses to the Westmount Building in Redmond, only 2700 square feet of leasable space in the building remains. Perfect for a restaurant or brewery user with rooftop access available for food/beverage service. Stunning views in a severely underserviced part of Redmond desperate for food options. If you or someone you know is looking for restaurant space, this is the place to be! Contact us at [email protected] to learn more or visit our listing below:

Westmount - Residential Condos for Sale

Residential condos available for sale now at Westmount building in Redmond off Canal Blvd. Great location, mountain views, modern high end living and much more. Visit the link below for more information and to schedule a showing today!

Market Pulse: A Comprehensive Overview of Stock and Commodities Trends

Over the past week, the stock market has seen varied performance across different indices. The Dow Jones Industrial Average experienced a modest increase of 0.7%, reflecting a somewhat stable performance. The S&P 500 Index saw a more substantial rise of 2.7%, which indicates a positive trend for broader market stocks. Meanwhile, the NASDAQ Composite outperformed other major indices with a significant 4.2% gain, likely driven by strong performances in the technology sector​ (Briefing.com)​​ (JPMorgan Asset Management)​.

In terms of economic factors, the U.S. GDP growth rate slowed down in the first quarter of 2024 to 1.6%, which was below the previous period's growth and missed consensus expectations. This slowdown was attributed in part to a decrease in personal spending on durable goods, although services spending grew robustly. Despite these mixed signals, the underlying domestic demand remained solid, supporting a growth outlook that, while slower, remains positive for the near term​ (Briefing.com)​.

Market analysts are maintaining a cautious but positive outlook for the remainder of the year, emphasizing the importance of diversifying investment portfolios and potentially increasing allocations to equities relative to bonds, given the current economic landscape and expectations for the Federal Reserve's policy​ (Briefing.com)​.

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