Newport Beach-based Hotel Innvestor LLC plans to use crowdfunding to raise about $2 million.
The money will go to its LOF REIT I LLC, which it will manage. Plans call for the entity to invest in Lodging Opportunity Fund, a private, non-traded real estate investment trust based in Minneapolis.
Hotel Innvestor founder and President Tim Edgar launched the company in September, and first tried to raise about $35 million to lend against hotels in Goleta and Glendale.
“Debt is too cheap right now and investors aren’t looking for that,” Edgar said.
Edgar’s latest approach involves buying into the Minneapolis-based REIT, which targets middle-market properties in the Midwest U.S.
Edgar cofounded Irvine-based hotel broker and consultant Atlas Hospitality Group in 1997. He left as a senior vice president last year to start the new company. He said he plans hotel investments in California, in addition to the Lodging Opportunity Fund venture.
Hotel Innvestor’s SEC-registered broker-dealer partner is WealthForge LLC in Richmond, Va.
Crowdfunding real estate companies in Orange County include Newport Beach-based Rich Uncles LLC, which buys retail properties.
