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Real estate crowdfunding

Posted on 8/28/16 at 9:50 pm
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
50659 posts
Posted on 8/28/16 at 9:50 pm
Anyone here have investments in real estate through crowdfunding, like FundRise?

This looks very interesting and I'd like advice.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 8/28/16 at 9:52 pm to
how is this any different than a REIT? Also LOL at the fact they included the 1 flat year of the S&P as the comparison.
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
50659 posts
Posted on 8/28/16 at 10:03 pm to
quote:

how is this any different than a REIT?
Well, if I understood, I may not have asked for advice.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 8/28/16 at 10:26 pm to
lol ok here's my advice dont invest in a financial instrument you need advice on comprehending from a message board, i can be a smartass too.
This post was edited on 8/28/16 at 10:27 pm
Posted by Dr RC
The Money Pit
Member since Aug 2011
60915 posts
Posted on 8/29/16 at 2:29 am to
I feel like there was something like that on Shark Tank recently and all the sharks essentially called it a scam.
Posted by Balloon Huffer
Member since Sep 2010
3421 posts
Posted on 8/29/16 at 8:02 am to
Do not heed the uneducated opinion.

Crowdfunding for real estate is the bee knees currently.

I have used realtyshares with great results. Unsure about fundrise.

The risk is there, but no more than the market, and the returns are very strong.

Great place to start unloading some discretionary funds.
Posted by baldona
Florida
Member since Feb 2016
23262 posts
Posted on 8/29/16 at 9:01 am to
IMO you are just begging to be scammed doing things like this. The REIT's give pretty good returns and more importantly are pretty safe. I don't see the return being worth the risk to do anything in between a REIT and owning the property yourself.

There are so many ways to be scammed in real estate still, it's nothing is mess around with unless it's tried and true.
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
87430 posts
Posted on 8/29/16 at 9:51 am to
quote:

I feel like there was something like that on Shark Tank recently and all the sharks essentially called it a scam.




link?
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
87430 posts
Posted on 8/29/16 at 9:53 am to
quote:

REIT's


love 'em

plus actually owning physical RE, but you already knew that.

Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
87430 posts
Posted on 8/29/16 at 10:18 am to
quote:

Crowdfunding for real estate is the bee knees currently.



not for normal jimmy's and joe's if they still require all investors to be accredited.
Posted by Dr RC
The Money Pit
Member since Aug 2011
60915 posts
Posted on 8/29/16 at 4:58 pm to
quote:

link?


No idea which episode it was on as they all tend to run together for me so I cant help you there.

But their main issue w/it was that the people putting in money have no real control over what or how property is purchased as well as issues w/just how much of said property you actually own. They really didn't like dealing w/a person buying property for them that they weren't going to have any influence over b/c it makes it easy to get fricked if the deal goes bad.

I'm not saying this is exactly the same as the thing that was presented on Shark Tank b/c I haven't exactly looked deep into the linked site and wasn't really intently watching the episode but I do remember they all hated the idea of throwing in money for property w/a people they don't know.
This post was edited on 8/29/16 at 5:03 pm
Posted by Teddy Ruxpin
Member since Oct 2006
40519 posts
Posted on 8/29/16 at 5:14 pm to
quote:

not for normal jimmy's and joe's if they still require all investors to be accredited.


It seems like the accreditation requirement is slipping consistently. Probably will be widely gone in a year or two for the smaller minimum sites.
Posted by illenaparker
New York
Member since Aug 2016
7 posts
Posted on 9/4/16 at 11:44 pm to
Yes, I have invested in real estate through crowdfund. But it is not an easy process. So many fictitious companies are on the scene that it becomes difficult to select in which project you have to invest. Where I have now invested, it was with the proper consultation of my near and dear friends and also going through the company's profile in detail from reference books and online. It is now going to one year since I have invested in the project and the project is doing well. Last month I received the first dividend from that investment.
This post was edited on 9/4/16 at 11:54 pm
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