ALBUQUERQUE, N.M. (KRQE) – An Albuquerque brewery has a new way of asking for the community’s help during the pandemic: by seeking investors.
Nexus Brewery Owner Kenneth Carson is choosing to take this route to expand one of his locations during a time when revenue is down. “We probably would’ve gone with the bank to do this expansion, but because of the virus, it kind of held us back,” Carson explained.
Carson is trying to raise at least $100,000 through Mainvest. Investors choose their contributing amount and will get a revenue sharing note. The business agrees to share a portion of their revenue until it’s repaid with interest. “It’s the same risks you’d have investing in any other corporation,” Carson said.
Nexus’ goal is to expand the dining room by about 3,000 feet at the new smokehouse location off Broadway and Cesar Chavez before winter so that diners won’t have to be on a cold patio.
A local chief investment officer says while it’s important for people to invest in the community and causes they care about, they should know the risks. “Only invest what you never need to see again and I would say that, do your due diligence and never invest in a privately held business unless you are a fan, you understand it inside and out,” Portfolio Wealth Advisors Chief Investment Officer Lee Munson stated.
Munson said potential investors should always ask why a business didn’t first go through a bank, or why they couldn’t get a bank loan; and see if the interest is too good to be true, which he said is about 8% and up. “Sometimes people feel that if I see it being offered as an investment that it somehow has been endorsed or it’s been vetted,” Munson explained. “I can tell you right now, this stuff has not been vetted and it’s buyer beware.”
Carson said he does want to be transparent about the risks involved, and didn’t go through the bank because he thought this would be a quicker way to get the project up and running. He would still need the city to sign off on construction permits.
If they don’t reach their money target, Carson said he’ll go through the bank and do the project next year.
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