Arizona residents can invest in Valley apartments with crowdfunding

PHOENIX — There’s a new way to invest in real estate if you live in Arizona.

Jamison Manwarding with Neighborhood Ventures told KTAR News 92.3 FM that Arizona residents can invest in apartment complexes in the Phoenix area and get a 12 percent return each year — all thanks to crowdfunding.

Manwarding said the company allows people to invest in up-and-coming apartment complexes for as little as $1,000.

“We buy apartment buildings in the Phoenix area that need to be renovated,” he said.

Manwarding said all of the company’s projects are local and the average investment in the buildings is $5,000.

He said the company is focused on apartment complexes right now due to the demographic shift in the area that has led to a high demand for renting.

“Our first project was in Tempe,” Manwarding said, adding that the project had more than 100 investors and raised more than $500,000.

“It’s a unique way to invest in real estate without having to be a landlord,” he added.

Manwarding said unlike investing in the stock market, those who are looking to invest in an apartment complex have an advantage because it is something they can see and since it is local, investors can make more of an educated decision.

“If you’re an investor, you own a piece of that project just like you own a piece of stock,” he said.

“When you invest in stocks, it’s hard to make an educated decision because there are so many more factors.”

Thanks to the passage of federal and state crowdfunding laws, people who are not accredited investors — defined as people who make $200,000-plus each year or have a net worth of $1 million — can invest in real estate.

Manwarding said some of the people who invested in the company’s first project in the Phoenix area included teachers, students, nurses and real estate agents.

“We saw a lot of people who were really excited about the opportunity to own a piece of real estate in the area,” he said.

But Manwarding said investing in real estate is not for someone who is looking to participate in a get rich quick scheme.

“This is an opportunity to put a couple thousand dollars away in an investment that will get a double-digit return,” he said.

“If you are putting your money in savings, the return is less than one percent. This is a way to save money and build wealth with a real estate project in your own neighborhood.

Manwarding said the company’s first project sold out six days early, but they are planning to add additional projects soon.

KTAR News 92.3 FM’s Ashley Flood and Nailea Leon contributed to this report. 

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