What Happened to Tycoon Real Estate After Shark Tank?
What is Tycoon Real Estate?
Tycoon Real Estate is a Crowdfunding platform that allows everyone to engage in real estate projects that have been placed by anyone searching for financing.
Crowdfunding has grown in popularity over the years, but real estate investment was an entirely new way to generate money.
Aaron McDaniel is the founder and CEO of Tycoon Real Estate. According to the Jumpstart Our Business JOBS Act of 2012, Tycoon Real Estate can work similarly to other Crowdfunding sites.
This means that, in the instance of Tycoon Real Estate, you could theoretically invest in large real estate holdings in some of the most desirable parts of the United States of America for as little as $1,000.00.
Who is the founder of Tycoon Real Estate?
Tycoon Real Estate’s founder and CEO is Aaron McDaniel. McDaniel, once one of AT&T’s youngest vice presidents, created the site in 2012, following the enactment of the JOBS Act, which allows non-accredited investors to finance small private businesses online.
Tycoon Real Estate’s Crowdfunding strategy is simple. Simply visit the Tycoon Real Estate website and browse the listings, which are rated from 1 to 5.
The expected rate of return is shown in the listings. When you find a home you want to buy, click on it, and a Tycoon Real Estate representative will contact you within 24 hours to finish the deal.
All “paperwork” is done online, and funds are sent electronically. When a transaction is completed, you become a “partner” in the limited liability corporation that owns the property.
Once a transaction is completed, profits are distributed to “shareholders.” Tycoon Real Estate is presently engaged in San Francisco’s burgeoning real estate market.
What Happened to Tycoon Real Estate’s Pitch on Shark Tank?
Serial entrepreneur Aaron McDaniel presents Tycoon Real Estate, a real estate Crowdfunding website, on Shark Tank episode 620. McDaniel wishes to grow into other sectors and expects to accelerate the process with the assistance of a Shark.
Aaron entered the Shark Tank pitch seeking $50,000 in return for a 5% stake in his company, which valued at $1 million.
He explains how Tycoon Real Estate and real estate Crowdfunding work.
Mark quickly communicates his disgust and exits. He helps the Sharks complete one of the site’s deals. He feels they were on the cusp of a new epoch.
Aaron explains how each investment works to Robert, who was curious about how he will be paid back.
Tycoon Real Estate charges a fee of 1.5 percent. Tycoon Real Estate has completed two deals to prove the concept.
Kevin says he can go buy a REIT, but Aaron believes they aren’t alluring; he believes people have a greater bond with real estate.
Robert feels that anyone considering investing in this should proceed with caution. Crowdfunding, according to Mark, attracts people who cannot afford it.
Lori doesn’t like the idea; she thinks it’s dangerous and unsettling, so she goes out.
Barbara feels that any real estate investment was dependent on the primary developer; she also believes that it is dangerous; she has opted out.
Kevin professes to comprehend the difficulty of dealing with other people’s money. Kevin offers $50,000 for a 50% stake in the firm, but he wants to rename it after himself.
Aaron declines the offer and finally walks away from the pitch without a deal.
What Happened to Tycoon Real Estate After Shark Tank?
Aaron did receive some investor inquiries following the presentation, but they all disappeared. He attempted to arouse people’s interest in the Tycoon Real Estate brand, but got little response.
As a consequence of the efforts of long-standing rivals, Aaron got a rescue package in November 2015. Five real estate Crowdfunding portals paid an unknown sum to acquire the firm.
The group, led by ‘Patch of Land,’ sought to disprove the sharks and convince investors that crowd-funded real estate is the way of the future.
Patch of Land CEO Jason Fritton wanted to clear up any misconceptions regarding the company and expressed gratitude for the increased industry exposure as a consequence of Aaron’s appearance on the show. However, the consortium’s aims appear to have faded as of 2021.
The Tycoon Real Estate website remained offline for a long time. The social media accounts, on the other hand, continue to attract press and media interest; the firm is now only a moniker.
Tycoon Real Estate’s Competitors
There were other websites that provide services comparable to Tycoon Real Estate. Patch of Land and Realty Mogul are two examples.
Tycoon Real Estate’s Net Worth
During and after the pitch, the firm was valued at $1 million. Since then, the company has gone out of business; therefore the net value is no longer available.
Tycoon Real Estate FAQs
What state was Tycoon Real Estate in?
The company never provided the location.
What was the domain worth?
Even though the company was not in operation, its domain still has value as a non-operational domain that could be sold for an undisclosed price. There have been no reports of its being sold or purchased however since the time of Aaron’s pitch to the sharks in 2012.
What was a comparable site?
There were sites like Patch of Land and Realty Mogul that provide a similar service to clients at a higher price than what this site provided at its inception.
What caused Aaron’s departure?
Aaron left to pursue other opportunities. The site closed down in 2015.
How did the owner fare after pitching on Shark Tank?
Aaron tried to rekindle interest when he hosted a CEO Round Table on October 8, 2012, but that didn’t go well; the company had been dropped from the Shark Tank website by then. The mogul was unable to secure a deal with a potential investor and after three years, it folded.
What was the intended use of the site?
Tycoon Real Estate offer services for people who want to invest in real estate deals. The company has discontinued operations.
What was the business climate like in the Bay Area?
Due to the booming real estate market, investors might have misplaced their enthusiasm for Aaron’s pitch. The company was seen as a viable business, but it failed to prove if it would serve as a reliable and viable option for investors who are looking to invest in real estate deals. As of 2011, there are 41 billion square feet of real estate being developed in San Francisco alone.
Who was the target market?
The target market used to be real estate investors who had a pool of capital at their disposal. The business, similar to other business investors, aimed to make profits and hopefully earn returns on the investments they made.
How did Aaron describe Tycoon Real Estate?
In his pitch, he said that the site offered investors an opportunity to invest in real estate at a lower cost than if they invested directly in real estate projects themselves.
Who was Tycoon Real Estate’s legal owner?
Aaron was the only person who owned this company. As of 2015, the company is not operational; it has closed down. The website continues to exist and attract a considerable amount of attention despite its lack of operations, but Aaron has moved on to other ventures.
What were Tycoon Real Estate’s future plans?
The company has ceased operations and has ceased to exist as an entity.
Was Tycoon Real Estate a registered business?
It was formerly registered with the state of California, but it is no longer operational.
Who was Aaron’s partner?
No partner was mentioned during the pitch on Shark Tank. As of 2013, however, he worked solely at this business venture.
How was Tycoon Real Estate funded?
Aaron owned 100% of the company. There were no reports of it receiving a loan or grant or any financial assistance of any kind.
What about other funding options?
There were Crowdfunding platforms that provide grants and loans, but there is no option for investors to buy shares through them; the only real way to participate was to invest and own a percentage of the business.
Was Tycoon Real Estate an App?
The company had a website that allowed people to invest in real estate. Aaron said he intended to provide an app, but there were no reports of one being launched or in existence at the time of his pitch.
How did Tycoon Real Estate make money?
It made money through charging investors a fee of 10% of the total investment amount.
How much money does Tycoon Real Estate have?
The company is defunct, but the website was earning revenue up until 2015.
What was the main purpose of Tycoon Real Estate?
Aaron’s goal was to make money and earn a return for investors who bought a percentage of his company and wanted to see their money grow.
What happened to Tycoon Real Estate?
Aaron has moved on to other ventures since 2012, but he still owns the domain name. As of 2018, however, the site has not moved forward and it remains inactive.
Who was Tycoon Real Estate’s biggest competitor?
There were other Crowdfunding platforms that offer a similar service to their clients although they charge a higher rate to investors than Aaron did. In 2016, Patch of Land’s CEO launched a new mobile app called ‘Real Life’.