PeerRealty Sponsor Webcast Presentation

Sponsor WebcastJordan Fishfeld, CEO and co-founder, PeerRealty

February 25, 2016

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Transformational Rules

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• Crowdfunding is the practice of raising money through contributions from many individuals, instead of just a few

• Crowdfunding allows individuals to invest in a project in exchange for equity — a fundraising technique legalized in the USA by the passing of the Jumpstart Our Business Startups (JOBS) Act in 2012

• In amendment of the Securities and Exchange Acts, the JOBS Act allows for citizens around the country—and around the world—to invest in businesses and products over the internet, as long as the goods and services are offered in accordance with regulations set by the SEC

• Regulation D– 506(b) Most common, no public solicitation– 506(c) Public solicitation – used by PeerRealty

and most other crowdfunding platforms• Title III

– “Regulation Crowdfunding” – non-accredited investors

• Regulation A+– Mini-IPO – non-accredited investors

Type of Fundraising in the US

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Market DisruptionCrowd Finance

Crowdfunding portals were projected to raise $34.4 billion1 in 2015 – over 12x the amount raised in 2012

• Donations / Rewards-based• Consumer Lending / P2P

Up to $2.5 billion in real estate crowdfunding transactions were projected to occur worldwide in 2015.

1. Source: Massolution Crowdfunding Industry Overview 2015 Research Report

• Venture Capital• Real Estate

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Submitting Your Deal

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Network of High Quality Sponsors

Thanks to exclusive partnerships with our sponsors, we're able to offer investors the opportunity to participate in the highest-quality real estate transactions.

With over 50 years of combined real estate experience and $1 billion in combined past projects, investors that crowdfund through PeerRealty gain insider access to opportunities that meet a professional standard of excellence.

PeerRealty focuses on sponsors with a proven track record of success looking to grow their business.

Sponsor Benefits

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Grant accessto new capital sources

Guaranteed publicityallowing sponsors to grow their business

Smaller and less involved investors means less time

wasted on investor relations

Moremanagerial control

Lowercost of capital

Opportunities We Target

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Due Diligence Process

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We look at a number of factors in evaluating deal submissions:• Market research• Risk/return profile – we like to have a mix of deal types on the platform at any particular

time• Sponsor background:

– How many similar projects have they done?– Criminal, background, credit checks– Historical track record – years in business, experience– How well capitalized is the sponsor? – Assets under management– Is the sponsor co-investing?

• Evaluate the pro forma – what assumptions are being made?• Do we think the “crowd” will fund this?

Funding the Deal

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• Deals are generally funded within 30-60 days

• Due diligence and sponsor onboarding typically takes 2-4 weeks, but can be shortened if all materials are received quickly

• *Pre-funding* For select deals we will pre-fund your offering from our established line of credit, giving you comfort and assurance that the equity will be there when you need it.

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Deal Structure

Sponsor

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Investor Holding Company

Asset Holding Company

Asset The Crowd

Investor Relations

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• All investors are pooled into the special purpose vehicle, and all sponsor reporting requirements are for the one LLC. This means:

• One K-1• One distribution• One quarterly report

• Typically, the sponsor deals and interacts with PeerRealty only, but in certain instances PeerRealty will make direct introductions to the sponsor.

PeerRealty earns a flat fee upfront – charged to sponsor• Amount depends on complexity of deal - generally rolled into

closing costs

We earn a 1%/year asset management fee on invested dollars - charged to the investor directly

Finally, we share a small portion of the promote – allows us to align our interests with the sponsor and with investors

• We provide value through our compliance, investor relations and legal services, specifically by freeing the sponsor from any liability and the burden of raising money

• The economics should not change much due to the cheaper cost of capital demanded by the crowdfunded investor base

Fee Structure

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• We also offer the opportunity for sponsors to license (“white-label”) their own crowdfunding portal

• Crowdent, our custom crowdfunding portal brand, offers cutting-edge, user friendly funding solutions to nearly a dozen select platforms

• SEC, FINRA & broker-dealer compliant for Reg. A and Regs. D 506(b) & 506(c)

• Unlike other “cookie-cutter” portal providers, we specialize in building custom crowdfunding portals for real estate sponsors/developers.

• Contact us at info@crowdent.com for more info

Custom Crowdfunding Portals

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Learn more at PeerRealty.com/sponsors

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