Real estate crowdfunding solutions today with CrowdBulls: This project evolved from the interest in real estate crowdfunding projects. Over recent years a number of crowdfunding platforms appeared in the market, each of them taking different positioning. Being an investor in the crowdfunding platforms, certain tools were developed to monitor and check credibility of the projects as well as the platforms themselves in order to make a more qualified decision. Over time it appeared, that there is a need of such tools in the market as well. Therefore, it was defined as Crowdbulls project and brought to life to the public. Find more info at real estate crowdfunding platforms.
Another key criteria to check criteria investing – track record. This is not an easy one to check and validate as platforms are providing information on their websites, which can be changed and is hard to check the log. Nevertheless some real estate crowdfunding platforms provide audited financial statements with key statistics and financial information. On a side some platforms provide statistical information how they have progressed over time in terms of capital raised, registered users, failed projects and etc. Before choosing a real estate crowdfunding platform, make sure to check at least the following two critera: financial information of the platform if available; Statistical information on how the platform is performing; It is also highly recommended to consult with friends or other community members on the feedback of the real estate crowdfunding platform.
Reasons that individuals may be interested and exploring in these types of real estate opportunities include: Chance to diversify assets and investment portfolio holdings; Low startup capital required as compared to traditional real estate investments; Shared cost structure enables financiers to invest in larger property holdings than they’d typically have access to; Risks associated with ownership are split among multiple stakeholders; Access to new and/or exclusive opportunities; Ability to hold commercial real estate or real estate portfolio holdings in addition to residential properties; Offers exposure to real estate market without the need to personally provide upkeep and maintenance; No need to individually qualify for, obtain, and make regular payments on a mortgage; Does not require owners to personally guarantee loans with property and assets.
Since its inception in 2012, more than 219,000 investors have joined RealtyMogul to access its REITs and private market offerings. Known for its exemplary due diligence, the company vets every potential property in person and scrutinizes each deal using propriety methods and models. The company looks for well-leased properties or those with existing leases, and it works only with real estate partners with proven track records and experience managing assets. It does not invest in non-cash-flowing investments, such as raw land or ground-up construction. Investors can choose from three objectives: passive income, growth, and diversification.
Crowdfunded interest rate: Interest rate is one of the indicators showing risk level of the project. Interest rate of the project is being defined by a borrower and the platform. Borrower is looking for the lowest possible interest rate, whereas platform is trying to inflate it to level, which would be attractable to investors and real estate project would be financed as well as would not kill the project due to a high interest rate burden. Real estate platforms is advising on the interest rate level based on their historical experience from other funded projects. As this is a direct risk indicator, the lower the interest rate, the lower the risk.
CrowdStreet: One of the more well-known real estate crowdfunding sites, CrowdStreet provides accredited investors with access to commercial real estate projects that look to deliver high returns on investment. CrowdStreet also provides some minimal due diligence for investors in the form of conducting background and reference checks on developers wishing to solicit their financial contributions. Nonetheless, whether you’re looking to invest in funds (which hold a variety of different real estate projects within them) or individual properties, many offerings require a minimum investment of $25,000. Likewise, any sums that you choose to invest may remain illiquid and have to sit untouched for a period of years.
The Securities and Exchange Commission (SEC) has since lifted the restrictions that banned non-accredited investors from investing in crowdfunding activities. Although there are limitations, non-accredited investors can participate in crowdfunding for equity transactions as well as real estate transactions. Current Real Estate Crowdfunding: Prior to the JOBS Act, real estate investors could only invest in real estate by buying a physical property or investing in real estate investment trusts (REITs). However, crowdfunding has opened up a whole new method for investing in real estate. See additional information at crowdbulls.com.