A local startup that uses crowdfunding to invest in residential real estate has progressed from rental homes to apartment complexes and has acquired its second multifamily property.
Jacob Blackett and Sterling White launched Holdfolio in October 2014 by attracting investors to collectively purchase rundown rental houses the company could renovate with hopes of turning a profit.
The company in May acquired its first apartment property, in the Garfield Park neighborhood on the near-south side, and now has bought one in Beech Grove.
Holdfolio paid $1.4 million to purchase the 50-unit Terrace Park Apartments at 2314 Main St. Built in 1970, the complex had a local owner who agreed to sell the property to Holdfolio without officially putting it on the market, White said.
“We just did some digging, pulled the public records, and called them directly,” he said.
Occupancy is hovering around 90 percent, but Holdfolio expects to get it fully leased after the company spends $150,000 upgrading the units, White said.
The purchase follows Holdfolio’s $900,000 acquisition of the 46-unit Garfield Place. The company sank another $400,000 in the building using investor funds to get it fully leased.
Holdfolio requires a minimum $15,000 investment for apartment properties—$5,000 more than what’s needed for rental homes.
The company targets properties that are considered distressed and in areas of the city that can benefit from its investment.•