Largest Subsidized Rental Provider in Arizona Launches Raamp REIT for Investors
Real estate development executive Michael Johnson has launched Raamp REIT (Real estate Asset Acquisition Management Portfolio). Raamp REIT is Arizona’s first exclusively multifamily, real estate crowdfunding platform and asset management company.
Raamp REIT is structured as a real estate investment trust (REIT). It has a minimum investment of $2,500, and the fund is open to nearly all investors, including casual investors.
By investing in the REIT, investors gain access to a diversified pool of commercial real estate investments with a single investment. The fund intends to invest in commercial real estate with a specific eye on multifamily. All rents are guaranteed by the Housing Authority of Maricopa County. Through this program, Johnson has become the State of Arizona’s largest subsidy rental partner.
In addition to providing for adequate and affordable housing for those who are less fortunate, this fund is also designed to have low fees for investors. By offering Raamp REIT exclusively on its platform, Raamp.io affords investors direct online access to the product with no sales commissions. Offering expenses are capped at 3%.
Johnson’s real estate team takes a relatively conservative approach when selecting transactions to offer for investment, investing only in cash-flowing properties. This approach will carry through to Raamp.io.
“Through our focused investment strategy, we can invest in both debt and equity in our specific property types and it will allow us to be very opportunistic,” said Johnson. “We have two objectives for the fund: one is providing investors with both consistent cash distributions and two, the opportunity to benefit from potential appreciation in property values.”
The launch of Raamp.io and the new REIT add to the wave of opportunity to invest in real estate. Until recently, private investment markets have been off-limits to many retail investors. Legislation such as Regulation A+ and Title III of the JOBS Act has leveled the playing field by allowing non-accredited investors making less than $200,000 a year to access these investment opportunities through online crowdfunding. Through Reg A+, Raamp REIT gives nearly all investors a new entrance to curated and pre-vetted private real estate investing.
In February 2020, Johnson announced that his firm had surpassed $8 million in crowdfunded real estate equity and debt transactions since its inception in 2016. By the end of February 2020, Johnson’s real estate investment portfolio consisted of 13 multifamily properties, a boutique hotel and The Bread & Honey House Restaurant.
