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3 Real Estate Crowdfunding Tips for Developers and Sponsors

Posted: Tue Apr 12, 2016 1:30 am
by Cristina
Real estate crowdfunding might be a newer concept, but it’s growing like wild fire.

Believe it or not, Patch of Land has originated over $100 million in short-term loans and has returned over $25 million to investors in the form of principle and interest.

Read the article here: http://www.crowdcrux.com/real-estate-cr ... evelopers/

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Re: 3 Real Estate Crowdfunding Tips for Developers and Spons

Posted: Sat Apr 16, 2016 12:39 pm
by emmawatson009
Here are a few things developers and sponsors should consider when evaluating real estate crowdfunding investments:

1. Vet the platform
2. Research the market
3. Perform due diligence on the sponsor
4. Consider your investment profile
5. Read the offering documents carefully

For additional detail, visit at http://crowdfund.co/real-estate/

Re: 3 Real Estate Crowdfunding Tips for Developers and Spons

Posted: Mon Apr 09, 2018 10:33 am
by mark_berg
Some well-known real estate crowdfunding tips are,

Know the rules

Most experts urge investors to consider real estate crowdfunding to be a long-term investment, since real estate holdings and debt are not as liquid as stocks, bonds or mutual funds. Equity real estate investments are considered long-term holdings, while debt investments may produce returns more quickly, but pay less in the long run.

Watch for risk

For example, there is the chance a property in an equity renovation or construction investment will cost more than expected to complete, or won't sell for the projected price. Borrowers in debt investments may default. Check the rules to see how quickly you could get your money out if, for example, the fund fails to raise the targeted sum.

Don't overdo it

This is a new industry and sure to experience growing pains, so don't bet the farm. Firms new to this industry may not have enough investor funds to diversify their holdings very widely, so you could end up with too many eggs in one basket. Real Estate Crowdfunding Review assesses the major providers on its site.

Don't get greedy

As with other investments, higher returns generally come with greater risks. The real estate market could sour, rising interest rates could undermine property values, the borrower may turn out to be less competent than your site thought, especially if the project involves a fix and flip.

Refer, Future of real estate crowdfunding investments! - https://www.agriya.com/blog/how-to-star ... -business/