Posts Tagged ‘crowd funding real estate’

HomeVestors Warns Investors To Be Weary Of Crowd Funding Real Estate Deals

Monday, September 22nd, 2014

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The new craze in real estate involves investing through crowd funding, but investors should completely understand it before committing to it. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that investors who are thinking about getting involved with crowd funding real estate need to be aware of all the negative factors attributed to it.  While crowd funding real estate has grown in popularity in 2013, one needs to understand the investment in its entirety before committing capital to the pursuit.

While the concept of crowd funding real estate deals is appealing and has a certain attraction to it, the truth is that many of these deals end up failing.  The reason for this is because many of these deals are high risk and managed by amateurs.  This is because professional real estate investors generally don’t have to use crowd funding to support their business ventures.  In fact, the majority of investors who use crowd funding to purchase an investment are either broke or don’t know the ins and outs of the real estate business.

Another reason that investors should be weary of crowd funding real estate deals is because there are generally fees associated with them.  Before getting involved in one of these deals, make sure that all fees are stated up front and ask about any hidden fees that aren’t immediately transparent.

When considering a crowd funding real estate deal, take a large number of factors into account and perform the necessary due diligence.  Research the sponsor investor who is advertising this investment.  Before working with this sponsor investor, first find out how much equity this individual has in the investment.  Those sponsor investors who don’t have any skin in the game should be avoided.

The next factor to check when considering a crowd funding real estate deal is whether or not there is a proper analysis of how the deal will make money and a timeline for each various goal.  An analysis that doesn’t seem to be logical should be avoided or an investor should ask more questions regarding the deal.

When analyzing a sponsor investor who is trying to get the capital for a crowd funding real estate deal, always check their references.  Consider running a credit check on the individual and get the necessary information to determine their character.

Only investors who thoroughly understand crowd funding real estate deals should get involved with them.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

Financing Through Crowd Funding Real Estate

Monday, July 7th, 2014

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There are a number of ways to secure financing for real estate and most investors opt to obtain financing.  Financing comes in multiple forms and can be obtained from one lender or multiple lenders.  Those who are considering capitalizing on multiple lenders through crowd funding real estate, the newest way to finance a property, should understand the process and search for investors.

Many investors are unfamiliar with the concept of crowd funding real estate so let’s start with a brief introduction.  Investors who are looking to fund a real estate acquisition, but don’t want to obtain bank lender financing or who don’t have the capital are choosing to ask the community for the necessary funding.  These individuals reach out to a number of investors who want to invest in real estate, but who don’t want to put in the work necessary or don’t have the money to do so.  These investors are choosing to invest a small amount of capital simultaneously with a group of investors and collectively purchase a real estate investment.

The process of crowd funding real estate can be a good idea for investors who are just getting started in the field and haven’t built up a solid reputation or capital.  There are number of websites that facilitate these deals and investors can simply sign up and list their business plan.  Those who are able to convince other investors that the investment is bound to be profitable are likely to have funding from investors all over the world.

The reason that crowd funding real estate works so well is because it is new and everyone wants a piece of the action.  In order to convince investors to submit their capital to this pursuit, marketing is everything.  Those who have the ability to put together a professional quality video and expose it to a large number of people are bound to earn the funding they need to purchase the investment.

When crowd funding real estate, take the necessary time writing up the business plan and have clear goals set up that will let investors know how much they can plan to earn from this investment.  Investors who secure the capital and are able to meet the goals that have been established are bound to find that they will earn the trust of investors.  These beginning investors can use their newly minted reputations and continue to capitalize on even more crowd funding real estate deals.

Investors who are looking for creative financing options should consider the benefits of crowd funding real estate.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.