Revolutionize Your Real Estate Investing with Crowdfunding
the ultimate guide
Are you ready to invest in real estate but lacking the funds or experience to go it alone? Look no further than real estate crowdfunding - the game-changing strategy that lets you pool your resources with other investors to fund profitable real estate projects. But not all crowdfunding platforms are created equal, and not all real estate projects are worth your investment. Learn how to navigate the world of real estate crowdfunding, find the right platform and deals, and achieve financial success through the power of collaboration. Watch now to get started!
More of a reader? Catch the video transcript below!
Hey guys, welcome to part five of our five-part series all about how to invest in real estate with little to no money.
Missed the others? Don’t forget to check them out!
Part One: How to Make a Profit With Wholesaling
Part Two: The Power of Lease Options in Real Estate Investing
Part Three: How to Partner Up With Experienced Investors
Part Four: How to Fund Your Deals With Hard Money Loans
Today, we’re going to talk about using crowdfunding to finance your real estate investment.
What is crowdfunding in real estate?
Crowdfunding (also known as syndication) is when you pool your money together with other investors to finance a real estate investment.
Now, this could look like a variety of things. It could be a bunch of people getting together to fix and flip a property, it could be a few people going in on a house and living in it together, it could be a group going in on rental units and splitting the income from the property…situations like that.
What to Know About Crowdfunding
Legal Compliance
The key thing when it comes to crowdfunding or syndication is to make sure that everyone is on the same page and that you are keeping proper legal documentation — because when you’re raising money for a real estate investment, you can trigger Security and Exchange Commission (SEC) laws if you’re doing it incorrectly. So, you want to be careful that you aren’t doing anything that could be construed as a mutual fund or some kind of investment pool.
You can’t just be like, “Oh, everybody, just throw me a bunch of money so I can buy a house!” There are certain methods and disclosures you have to use when you’re crowdfunding in real estate, so you’ll want to work closely with your legal team to make sure all the documents are in compliance.
Getting a Bigger Piece of the Pie (With Less Money)
Say you find a killer deal on a property, but you have less money to throw down for it (relative to your other investors). If the deal is good enough, you may be able to work out a larger share of the profits even though you’re coming in with a smaller share of the money because you found the deal or you’re willing to manage it.
If you can bring extra value to your investors in some way, you’ll be more likely to extract higher percentages of the return with a lower percentage of money.
Crowdfunding can be an effective way to invest in real estate with little money down. You’ll just want to find the right people to do this with and make sure you’re structuring the deal properly.
So, that’s it for our five-part series on investing in real estate with little or no money down! I hope these videos were helpful and that you learned a little something. And if you have any questions about crowdfunding, attorneys that’ll help you stay compliant through the process, values of properties, or anything like that, don’t hesitate to reach out to me and we’ll talk!
Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.
