Technological development has revolutionized America’s real estate industry, making the property management sector more efficient and profitable. Platforms that offer numerous online collaborations and –most importantly –workflow automation are increasing in popularity, in large part due to their ability to provide prompt access to accurate and consolidated data and information flow. Kenny Slaught, the president and founder of Santa Barbara-based Investec Real Estate Companies, shares his insights into how California developers can best apply innovative models and cyber operations in their business strategies.
New intuitive software and mobile applications, says the owner of one of the most successful property management enterprise in Santa Barbara, give investors and builders a greater selection of lending and borrowing opportunities across a variety of real estate asset classes and geographies. California’s crowdfunding or peer-to-peer lending projects emerged after the adoption of the Jumpstart Our Business Startup (JOBS) Act in 2012, which significantly democratized the ways, in which sponsors raise funds for real estate acquisitions and development. The new regulation allowed the previously banned practice of advertising or openly soliciting private funding from accredited individuals and firms. Anyone with a net worth of $1,000,000, excluding ownership of their personal residences, or with an annual income of $200,000 or a household with $300,000 per annum, if filed jointly with a spouse, can become an accredited investor. The amendments gave the green light to individual borrowers and lenders to participate in debt and equity financing, where loans generate income in the form of interest, without an official financial institution involved as an intermediary. The online marketplace has created a new avenue for property owners and funders to browse new investment offerings, perform due diligence, access dashboards to track how assets and financial products are performing.
Having been in the market for only a few years, crowdfunding portals have rapidly grown over 150 startups nationwide, specializing in real estate. Today, approximately 7% of the U.S population is an accredited investor. In a highly urban setting like Southern California, this number reaches 20%. Software platforms, such as CrowdEngine, RealtyShares, CrowdForce, among others, made it possible to legally raise money from the general public, with some going as far as attracting 90% of equity requirement through direct community contributions. Data analytics applications like Rentlytics, on the other hand, give owners greater transparency into the performance and management of their portfolios. Coming from a robust background in developing state-of-the-art properties for the past 35 years, Kenny Slaught is convinced that, in the real estate tech scene, California remains one of the most active states in the market right now. Using cutting-edge innovation tools to pool capital, borrowers and sponsors have raised more than $53 million through 90 residential, multifamily, and commercial properties in Sacramento, San Francisco, and the Bay Area.
Kenneth Slaught is an acclaimed real estate developer, financial expert, and community. As the founding principal of one of the most prestigious property management company in Santa Barbara, he oversees 40 employees, over $1 billion in assets through 3,000,000 square feet of retail, office, and self-storage properties and leads the company’s investment strategies. Under Slaught’s leadership, Investec has obtained permits to build 25 housing communities, primarily in Santa Barbara and San Luis Obispo counties, where it has built and sold more than 1,000 residential units. Apart from his professional endeavors, he contributes to a number of charity causes supporting local nonprofits, including Hospice of Santa Barbara, The Scholarship Foundation of Santa Barbara, and the Music Academy of the West, to name a few.
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