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April 19/2017

Crowdfunding real estate

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Backing Up That Real Estate Flip with Crowdfunding

Crowdfunding can help investors and individuals who like to flip houses and make profits.

You are in a party and you hear the guy beside you say “I just bought a house for $700,000. I fixed it and sold it for $800,000. $100,000 in 3 months. Not bad!”. This is the time that you should get jealous and think to yourself… I want a piece of this deal! This is how Crowdfunding was created...

Crowdfunding is for investors that like to get a piece of the flip profits but without the hassle of working with contractors and waiting for permits. This is a great way if you believe in the flip market.

From the other side if you are looking to flip and need the funds, the Crowdfunding can help you too. If you one of those people who look at a piece of real estate and say, “Man, I wish I had some extra money, so I could turn that place into a palace”? If so then you are one that has a desire to do some house flipping. You have the vision and the creativity but not the money.

Let’s say though that there just might be a group of people that are thinking a little bit like you are but in the opposite manner. They have some money but don’t have the will or the way to actually do those repairs. You have the fixer upper talents that it takes to make an old house look fabulous, and which also means it can be put back on the market for a potentially healthy profit. These are the type of people that you can find in the crowdfunding industry.

What is Crowdfunding Anyway?

Simply put, this a large group of people who all have usually a small amount of funds that they want to invest. They will all have their preferences as to the type of adventure they want to put their money into. For many they really like the thought of investing in house flipping.

Where Do You Find These Interested Parties?

You could take the long route and try and source out a bunch of individuals then collectively get them together as a group to invest in your flip project. Or, the much easier way is to source out companies that are specializing in this type of crowdfunding, to which there are a lot benefits for doing it this way.

The Interested Parties

These companies already have a database of funders who are keen on investing their money in this type of product.

Fair Pricing

A company that specializes in this already has a program in place and is well organized. This allows them to determine what the fair pricing would be as a return on investment for the funders, as well as for you who is the person that is going to be paying this price.

Hassle Reduction

When you are trying to arrange financial backing for a real estate adventure like property flipping on your own it can mean a massive amount of paperwork. Using a company that specializes in this looks after all of the necessary paperwork, such as the agreements and the issuing of the money in both directions. They rely on the latest resources and technology for doing this. Bottom line is the transactions are done in a legal manner with far fewer hassles and a lot less time.

Timing

When you spot a property that is ripe for a fixer upper financial adventure time is of the essence. There are plenty of others out there with the same concept as you. Using a crowdfunding company that is trustworthy and reliable means that you will get the funding that much quicker. This really reduces the chances of you losing out on a good deal.

A Plan for You

Something else that you will get with this type of partnering is a professional who will do all the underwriting for you that the transaction calls for. The terms have to be worked out as well as the payment schedule. When you have an expert do this for you then it frees up your mind to concentrate on the fixing up of the property to get it ready for a resell.

Real Estate as a Good Investment

Property flipping is just one segment of real estate that you can get into as an investment. Whenever an investment is hassle free it usually means that it will be much more financially successful. Being able to know that funds are readily available for your house flipping projects gives you real peace of mind. This means you can focus on the tasks at hand and do them right because you don’t have t worry about where the next dollar is going to come from for the next repair that is needed. With this type of freedom you can usually get the repairs done much quicker, and the house back on the market so your investment pays off.