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PropertyTechnology:2022 ESGTrends:Shapingthe entsInvestorsKnowFeaturing:
Agenda1About Entrust & Self-Directed IRAs2Proptech vs. Fintech Comparison3Proptech Industry Analysis4Regional Market Analysis5Industry Unicorn Case Studies6Q&A Time
Meet Your HostBill NevilleBusiness Development Manager at The Entrust Group10Years at EntrustEducating investors and professionals ontax-preferred retirement accountsB.S. in Finance from Penn State University
About Entrust 4B45k40 1Assets UnderAdministrationInvestorsEmpoweredYears inBusinessPoint ofContact
About Entrust Self-Directed IRA administrators Knowledgeable staff with CISP designations Nationwide offices In-person events and virtual webinars National Continuing Education programfor other credentials Bi-annual IRA Academy
What is a Self-Directed IRA?A retirement account in which the individual investoris in charge of making all investment decisionsGreater opportunity for asset diversification outsideof traditional stocks, bonds, and mutual fundsAll securities and investments are held in a retirementaccount administered by a regulated custodian or trustee
PropTech: The fast growing world of Property TechAnd what it means for real estate and for real estate investors
Grocapitus: Meet the Dream TeamABOUT GROCAPITUS & NEALGrocapitus owned / manageda portfolio of over 550 MillionOver 3,600 units of Multifamily,Self-Storage, Industrial andStudent Housing, in 10 statesNeal BawaCEO & FounderNeal is a Nationally known Multifamilymentor and speakerAbout 5,000 investors attend Multifamilywebinar series and hundreds attendMultifamily Boot camps each yearCo-founder of the largest MultifamilyInvesting Meetup in the U.S. with10,000 members.Anna MyersChief Operating Officer &General Partner
Grocapitus: Experienced at Building High Demand Rental PropertiesNOVA RTP1TOWNHOMESUNIVERSITYOAKSPARK LANEHOUSTONNEW CONSTRUCTIONMULTIFAMILY46 UNITSDURHAM, NCNEW CONSTRUCTIONMULTIFAMILY16 PLEXESHOUSTON, TXNEW CONSTRUCTIONMULTIFAMILY56 UNITSHOUSTON, TXBOTANICAOAK HILLSFALLS AT CRISMONCOMMONSCOYOTECREEKNEW CONSTRUCTIONMULTIFAMILY96 UNITSSAN ANTONIO, TXNEW CONSTRUCTIONMULTIFAMILY240 UNITSMESA, AZNEW CONSTRUCTIONMULTIFAMILY116 UNITSST GEORGE, UTMILL RACEPHASE 1ATHE GRID –MAIN & DODGENEW CONSTRUCTIONSTUDENT HOUSING210 UNITSPROVO, UTNEW CONSTRUCTIONSTUDENT HOUSING217 UNITSBUFFALO, NYBOTANICACHASE HILLNEW CONSTRUCTIONMULTIFAMILY72 UNITSSAN ANTONIO, TXAND MANY MORE
COMPARISON: FINTECH VS PROPTECHFINTECHPROPTECHTech TypeFinancial TechnologyReal Estate TechnologyOutcomeAutomated & Improved Financial ServicesRevolutionize RE MarketsExamples
SOFTBANK JAPANINVESTS 365MIN ROOFSTOCK3XPREVIOUS VALUATIONCURRENT VALUATION 600M 1.94BSingle-family rental units are proving a popular option forinvestment amid surging rents nationwide and more real estateinvestors snatching up homes. Over 18% of U.S. home sales werefrom real estate investors in the fourth quarter of 2021.Sources: 1) BisNow, SoftBank Funnels Millions Into Fast-Growing Single-FamilyRental Investment Platform, Mar 2022; 2) Crunchbase, SoftBank Vision FundPortfolio Companies, 2022.
PROPTECH: VENTURE FUNDING BREAK RECORDS 32BPROPTECH INVESTMENTS202149%FUNDING WENT TORESIDENTIAL PROPTECHS 28%VENTURE FUNDINGSINCE 2020 28% 32B
PROPTECH: DISRUPTS THE REAL ESTATE INDUSTRY
PROPTECH: A LOOK AT SOME 2021 DEALS- Unique co-ownership model- ”Launch to unicorn” in five months- Six months after raising 75million, it raised 125 million at a 1.5B valuation- Software platform for homeservice trades, raised 500M inMarch and 200M a few monthslater at a 9.5B valuation and isnow making plans to go public- Streamlined homebuyingcompany, raised 100 millionin a Series D raise that valuedthe company at 1.6 billionVALUATIONVALUATIONVALUATION 1.5B 9.5B 1.6B
PROPTECH: NOTABLE EXITSCONSTRUCTION TECHSMART HOME TECHBUILDING SOFTWAREBUILDING SECURITY 635M 500M 453M 276M2002201720141999 5B 2.2B 1.6B 808MIPO RAISEFOUNDEDIPO VALUATIONIPO & PIPEFOUNDEDMERGER WITH SPACIPOFOUNDEDMERGER WITH SPACIPOFOUNDEDMERGER WITH SPAC
79.1%PEOPLE WITHIN1-MILE RADIUSPREFER TO RENTTHAN BUY#2FASTESTGROWINGCOUNTY IN U.S.Neal Bawa CASATA Micro Homes San Marcos, TX210 Units: Brand New Modular Tech-Enabled Micro Home Rental CommunityInspirational images. Subject to change
CASATA: CURATED LIFESTYLE EXPERIENCEUniquenesses Like No Other with Broad Market AcceptanceUNIQUE DESIGNSEAMLESS TECHCURATED LIFESTYLEModern, stylish, and eco-friendlymicro homes with spacious &highly functional layoutsDedicated mobile app whereresidents can manage all needsand control their smart homeModern amenities such as food trucks,outdoor greenspace, art, music, events,and a beautiful common area
CASATAUNIT DESIGNMODULAR & EXPANDABLEDESIGN COST REDUCTIONSHORTER DEVELOPMENT TIMEFRAMEENERGY EFFICIENTInspirational images. Subject to change.
AUSTIN-ROUND ROCK-SAN MARCOS: BOOMING MSASince 2011, Austin MSA’s Population and Employment Has Grown 32% and 44% Respectively! 3.2%Age)wth (AveraorGniotulannual Pop 4.4%b GroAnnua l J oge)wth (Avera 32%Pop. GrowthSince 20112 44%Job GrowthSince 20111Sources: 1) U.S. Bureau of Labor Statistics; 2) U.S. Census Bureau; 3) World Population Review, Austin, Dec 2021.
AUSTIN: ACCELERATED ECONOMIC GROWTHUnique Business Climate: High Rankings for Talent Attraction, Recruitment & Retention#2 23%RENT GROWTHAs of Q3 2021#1HOTTEST BIG CITYLABOR MARKETWall Street Journal-2.2%#1#1BEST PERFORMING METROJOB LOSSES DURING PANDEMICU.S. BUREAU OF LABOR STATISTICS 2021#1VACANCYBEST POSITIONED FORCITY MOST RECOVEREDBEST STATE CAPITALIMPROVEMENTROBUST GROWTHFROM THE PANDEMICTO LIVE INYear to date, Q3 2021- Economic Innovation Group- Economic Innovation Group- WalletHub#1#1#1Top 10PREFERRED MARKETFASTEST-GROWINGBEST GLOBAL CITYCOMMERCIAL REAL ESTATEFOR INVESTMENTSMETRO IN THE U.S.FOR REAL ESTATEMARKET IN U.S.- CBRE Survey- Business Facilities- AFIRE- NAR, 2021Sources: US Bureau of Statistics, US News & World Report, Comptia, Policom, Wall Street Journal, Milken Institute, NAR, Zumper.
SAN MARCOS: MOST AFFORDABLE CITY IN AUSTIN MSAZumper Austin Metro Area Report: Ranks San Marcos #1 Highest Monthly Rental Growth Rate 5.1%34.8%SAN MARCOSRENT GROWTHHIGHEST MONTHLYRENT GROWTHCHEAPER RENTSTHAN AUSTINSan Marcos rent growthis comparable to Austinrent growth of 23%San Marcos had the largestmonthly rental growth rate inDecember 2021 for2-bedrooms& 4.7% for 1-bedroomSan Marcos ranked as theleast expensive city with onebedrooms priced 34.8%cheaper at 1,120 22%Sources: 1) SM Corridor News, Zumper Rental Report: San Marcos ranked as the most affordable city, Jan 2022; 2) Zumper, Austin Metro Area Report, 2022.
Aerial Overview & SurroundsInspirational images. Subject to change.
Ground / Upper-Level ViewInspirational images. Subject to change.
INVEST WITHOUT WORRYING ABOUT INTEREST RATES!Unique Grocapitus Interest Rate Protection Program
UNICORNS: THE GLOBAL 1B CLUB IS GROWINGGlobal Unicorn Count: Companies Valued at Over 3 Trillion S2021Sources: 1) Crunchbase, The World’s Unicorns Are Now Valued At 3T, July 2021; 2) CB Insights, State of Venture, 2021.AT FEB 2022, TOTAL NUMBER OF UNICORNS STANDS AT 1,148 COMPANIES
UNICORNS: US TAKES THE GLOBAL LEADPercentage Share of Total Unicorns by CountrySource: CB Insights, The Unicorn Report,Sep 2021.
PUBLIC LISTINGS & SPAC EXITS: COMMONPLACE 1B Deals Boom: Driven By Elevated Transaction Multiples, Trillions on Corporate Balance Sheets & Record Dry PowderP U B L I C L I S T I N G M E G A - E X I T AC T I V I T YSource: Pitchbook, The Growing Prominence of US PE Mega-Deals and Exits, Mar 2022.S P AC M E G A - E X I T AC T I V I T Y
MEGA DEALS & EXITS: BECOMING COMMONPLACE 1B Deals Boom: Driven By Elevated Transaction Multiples, Trillions on Corporate Balance Sheets & Record Dry PowderP R I V AT E E Q U I T Y M E G A - D E A L AC T I V I T YSource: Pitchbook, The Growing Prominence of US PE Mega-Deals and Exits, Mar 2022.P R I V AT E E Q U I T Y M E G A - E X I T AC T I V I T Y
CORPORATE ACQUISITIONS: COMMONPLACE 1B Deals Boom: Driven By Elevated Transaction Multiples, Trillions on Corporate Balance Sheets & Record Dry PowderPRIVATE EQUI T Y C ORPORATE ACQUI SI TI ON MEGA -EXI T AC TIVI T YSource: Pitchbook, The Growing Prominence of US PE Mega-Deals and Exits, Mar 2022.
Case Studies: Are these Unicorns worth the Let’s look at the Revenue & Profit of some Wall Street Darlings
Provider of online commercial real estateinvestment offerings & technology connectinginvestors with CRE firms.CASE STUDY: CROWDSTREETDEAL-BY-DEALPOTENTIAL VALUATION 3B25KMinimum InvestmentTOTAL DEALSAVERAGE RAISE 7MEQUITY RAISED, LAST 12 MO.600 1.2BACTUAL REVENUE VS CAPITAL RAISEDAVERAGE IRR2-3%18.5%Source: PR Newswire, With Uncertainty Roiling Equities, New Survey Finds 98% of Investors Plan to Put Significant Funds in Commercial Real Estate, Mar 2022.*includes deals being sold, and in contract
COMPARISONS: SO, HOW MUCH MONEY DO THEY MAKE?VALUATION 3B2021 REVENUE EQUIVALENT 1.2BACTUAL REVENUE (EDUCATED GUESS) 36MVALUATION IS 80X OF REVENUE
CASE STUDY: ROOFSTOCKOWNERSHIP PER SHAREFounded in 2015, Roofstock is a digitally-enabledmarketplace for investing in leased single-family rental homesVALUATION 1.94B5KMinimum InvestmentTRANSACTION VOLUME / REV.EQUIV LAST YEAR / ALL TIME 3B* / 5BASSETS UNDER MANAGEMENTFUNDING TO DATE15K 372MREVENUE SOURCESREVENUE LAST YEAR (GUESSTIMATE)3% of sale price 90M*Assuming that 60% lifetime revenue came in 2021.
COMPARISONS: SO, WHAT IS A REVENUE EQUIVALENT?VALUATION 2B2021 REVENUE EQUIVALENT 3B22X(74X of profit)ACTUAL REVENUE (EDUCATED GUESS) 90M
What’s Next?Upcoming Webinar: How to Avoid IRA FraudRegister today & join us June 22!Want to learn something new?Let us know in the survey as you leaveNeed more information on SDIRAs?Visit our website and Learning CenterFollow us on social media for updates
Time for Questions
Stay ConnectedBill NevilleNeal BawaBusiness Development Managerat EntrustCEOat tus.com(510) 587-0950 x237(510) 367-1510
Learning gives CREATIVITYCreativity leads to THINKINGThinking provides KNOWLEDGEKnowledge makes you GREAT- Abdul Kalam
What Renewable Energy Investors Should Know Property Technology: Shaping the Future of Real Estate Investments Featuring: Agenda 1About Entrust & Self-Directed IRAs 2Proptechvs. Fintech Comparison 3 . 6Q&A Time. Bill Neville Business Development Manager at The Entrust Group 10 Years at Entrust B.S. in Finance from Penn State University .
