Rodrigo Niño, founder of Prodigy Networks, explained that the power of a dollar is different based on who invests it.
As ballpark figures, he claims:
- If you're worth $10B, you can expect returns of 22% and interest rates of 1% above LIBOR.
- If you're worth $5M, you can expect returns of 8-14% and interest rates of 3-6% with good credit.
- But, if you're worth $2,000 you should only expect 1-2% returns and interest rates around 40%.
He argues that crowdfunding, by pooling capital, levels the playing field, giving those with less capital access to higher expected returns, previously reserved for the wealthy. When regulation allows it, he envisions crowdfunding moving beyond accredited investors, meaning you'll no longer need to spend millions of dollars upfront to gain access to lucrative commercial real estate investments.
Is this the next evolution in REITs?