Our Limitations on Funding

To ensure quality, EquityRoots has a few limits on our funding policies.

What are our limitations on funding?

Many times we get inquiries about what types of deals EquityRoots.com funds. We fund a variety of deals: opportunistic turnarounds, acquisitions, new developments. However, we do have some qualifying criteria to ensure that our hotel investors have the highest quality crowdfunding projects available to them. All projects must be franchised with one of the big three brands. This includes Marriott, Hilton, and IHG. Why is it that we are only picking these three? It’s not to say that other properties and other franchises do not make money or are not worth the hotel investment. They do, but these three brands have a proven track record of customer service, brand standards, and a sense of predictability that corporate travelers have come to expect. It’s the hotel brands that we feel comfortable investing behind and sharing to our hotel investors on our hotel crowdfunding platform. They have a strong brand support that includes central reservation systems working to fill your guest rooms each night.

EquityRoots.com also likes to look at the type of transaction. New development hotel projects from the ground up tend to have longer planning times and disposition periods, but they also tend to draw in higher revenue than a comparable pre-existing hotel upon stabilization.  It’s no secret that new hotels often become market leaders, but hotel investors must endure 18-24 months of deferred returns during planning and construction.

Alternatively, existing asset acquisitions are also an attractive proposition because you’re ready to recognize a return on your hotel investment the day after closing.  Existing stabilized assets also allow hotel investors to see exactly the income that they’re buying, whereas new development deals are based on projections.

Are there any dollar amount limits on funding?

In short – no. There aren’t any dollar amount limits on funding. This is because hotel crowdfunding utilizes technology as one of the variables in sourcing capital. Oftentimes, the hotel crowdfunding deal itself and the sponsor behind it matters just as much as the merits of the deal. A Hampton Inn in New York City will have no problems raising capital online. The technology department focuses on effective quality search algorithms to make sure that investment opportunities are available to local investors. Interested hotel investors that may be researching how and where to invest in hotels online may find themselves directed to EquityRoots.com’s platform. Again, the market and the deal the sponsor behind it have very much to do with how successful each funding is. With that said, we would expect the New York City Hampton Inn would raise quite a bit more capital than a Hampton Inn in Albuquerque, New Mexico. Other factors matter too, and we look at each submitted project holistically before presenting the hotel crowdfunding opportunity to our hotel investors. In general, the better the flag, brand, sponsor, and market size – typically improve the outcome on the capital raise.

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Financing Justice

Helping Plaintiffs Gain Access to Justice through Crowdfunding

Financing Justice


Imagine you we were badly injured in an accident that left you paralyzed against a Fortune 500 company. Your medical bills are continuing to grow and you haven’t been able to work since the accident. You have no one else to depend on for income. You had your case evaluated by an attorney and you are fairly certain that your damages are well over $700,000, potentially a few million. Yet there’s one small problem; your attorney has told you that your case could cost you at least $200,000 in legal fees, not including additional legal expenses, cost of living and inability to work due to your current disability that was created. Your attorney won’t work on a contingency basis, meaning they aren’t going to front the costs, and you can’t take out a loan because you don’t have enough leverage. What do you do?

Naturally, you would think you’re out of luck. In despair over the thought that you’re likely going to be stuck in a case where the defendants have funds to out “lawyer” you; seeking loans and searching for a law firm to take your case on a contingency fee or as a pro bono case ( which is unlikely). Now you have the opportunity to finance the litigation and your lawsuit through crowdfunding.

Access to justice is a major barrier in both civil and criminal trials. According to the Department of Justice, we have a legal system that is “inadequate”. The Office for Access to Justice states as its mission that it was established specifically to address the access-to-justice crisis and to help the justice system efficiently deliver outcomes that are fair and accessible to all, irrespective of wealth and status”. With the inability for Plaintiff’s with true meritorious claims to recover for past and future damage, means that many people are left hopeless.

Crowdfunding litigation (or litigation financing/funding) has become increasingly popular. Litigation financing allows investors the ability to invest in a legal cause of action. Just like institutional grade assets, investors are able to invest in lawsuits with potential for a high rate of return on the investment. How so? Well, just like any other investment an investor partakes in a portion of the amount that the Plaintiff needs to pursue the case. In return, based on the total judgment award, the investor receives a portion of the judgment for the initial investments into the lawsuit. Without the investor helping to fund the lawsuit, the lawsuit would not have gotten to the judgment stage

From the investor’s view, you’d have the ability to invest in justice — giving the plaintiff their “day in court”, that they otherwise would not have had. Sharing in the risk of the possibility of judgment means that as an investor you share in a portion of the total judgment award. Investors should feel good— you have the ability to further public policy and promote access to justice. With capital to work with, Plaintiff’s can now bring forth their lawsuits in the pursuit of justice. This allows them the ability to engage with the legal system when they otherwise wouldn’t have had such an opportunity.

Investing in litigation is risky, just as any other investment would be. As an investor it’s important to know that each case is properly vetted to ensure that only meritorious claims are pursued. Investors should also be aware of the process of review of every lawsuit. This way you know whether or not the frivolous or fraudulent cases are set aside and only those that have passed all the tests have the ability to receive funding from investors. Thereby ensuring that not only are your funds that you have invested are getting put towards a good cause, but also increasing the likelihood of a return on your investment. At EquityRoots we go above and beyond for our clients to ensure our vetting process yields meritorious claims. For our clients, we provide lawsuit and litigation financing to those in need of assistance with their legal expenses. For our investors, we ensure that we have properly vetted each case, just as we do with any other investment opportunities we offer.

Litigation Financing and crowdfunding litigation allows the plaintiffs an opportunity they otherwise wouldn’t have had, with the investor reaping a benefit alongside the plaintiff. After all, there can be no justice without adequate access to justice.

screen-shot-2016-10-25-at-6-32-15-pmFor more information about financing your lawsuit or investing in a lawsuit visit us at http://signup.equityroots.com.

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