Future Real Estate Investing Through Digital Platforms

It can be a frustrating process to search for online properties. We all know that, right? It can take a lot of time for prospective buyers to sift through all the information they find.  

Crowdfunding Real Estate Projects via https://www.equitydoor.com EquityDoor

Countless hours are spent in front of a computer, tablet, or smartphone to compile a list of eligible properties. In addition to finding a real estate agent to help you, the massive task of meshing schedules and planning a solid route to take prevails. The future of real estate investing is here in the form of digital platforms – making it easier than ever to invest in projects online.

The Cons of Searching for
Real Estate Investment Opportunities

There is no doubt that one of the major cons of searching for real estate investment opportunities is that it’s a tedious process. You wouldn’t be here right now if it was a bed of roses. That’s why it’s essential to take the time needed when looking for a property to generate income. 

  • Securing a loan takes more time than you think and can actually limit your potential for future investments. 
  • Speaking with lawyers is no walk in the park and costly, to boot.
  • Often being confused when struggling through the financial documents. 
  • Taking one, sometimes even two years, before finding the right property.
  • Delayed decision making from so many others in the traditional process.
  • Unrealistic expectations.
  • All of the above, and sometimes even more.

Who has time for this? Do you? I didn’t think so. 

The Evaluation of Real Estate Investment

Think about the numbers. They’re quite staggering and difficult to wrap your head around. 

Let’s say that the budget on the table is $700,000, and the search starts in Los Angeles. It is easy to put in over 200 hours, and many months will go by before anyproperties of substance come about.

Cashflow for Real Estate Investing and Why it’s Important:  

Cash flow is one of the most important factors when purchasing an investment property. Understanding the costs involved is crucial: 

  • Taxes
  • Insurance
  • Maintenance
  • Property Management Fees
  • Other Recurring Costs 

Evaluating real estate investments is not easy. And as you can see, the expense can knock down the revenue stream quickly.

Digesting What it Means to
Purchase Real Estate to Create Streams of Income

While taking all of the risks into account, purchasing real estate to create streams of income has always been a great way to breed money (build equity) for many investors. Investments in real estate are on its way up, and in the last couple of years, it has become one of the strongest forms of wealth building. Not only since the recession but in recent history as well.  (Not sure what this last sentence means)

Times are changing, and the method once used for Investing in real estate is changing with it. Buyers who can keep up with this changing pace place themselves in a better position to handle their next investment with less time,  hassle and expenses involved.  

 The Future of Real Estate Investing & Easier Finance

Incvluding  properties in the United States at the One Million Dollar mark or below, EquityDoor provides the ability to help raise capital for mid-market properties that are sometimes overlooked elsewhere. 

It’s safe to say the future of mid-market real estate investing is here: 87% of the real estate sold in the U.S. fall into this category.  EquityDoor thrives on finding the right investors to help finance real estate to make additional income. Using a digital platform means getting around the typical method of securing finances and opening the door to an entirely new sphere of opportunities.

How Much Does it Cost? 

Lots of investors are asking, “How much does it cost to crowdfund real estate developments?” 

Good question. Would you believe the answer if it was as little as $1000?

One of the ways to access investors who are leveraging the power of real estate crowdfunding platforms is to use digital platforms like EquityDoor. Investors can get in the game for as little as $1000. No joke. EquityDoor is a game-changer on the playing field for digital platforms for real estate investment.

As an investor, all you need to start investing is $1000 for the crowdfunding approach with EquityDoor. Having tens of thousands of dollars to get started might have been the only way investments were done in the past, but things have certainly changed. 

What other costs are involved in Crowdfunding Real Estate? 

The costs involved for crowdfunding real estate are reliant on several variables, including the type of  platform you use.

Before choosing your platform, consider these tips on what could end up being hidden costs of crowdfunding real estate investments: 

  • Annual Fees 
  • Management Fees
  • Construction Fees
  • Transaction Fees

Bottom Line:  Ask questions before making a final decision on the best platform to use for real estate crowdfunding! 

How can it cost so little to crowdfund real estate investments?

Keeping the initial investment low allows many more people to get involved and start investing via this new type of digital platform. 

Getting started is pretty simple and begins with a minimal amount of money here at EquityDoor. 

Top 3 Questions to Consider When Learning About Crowdfunding for Real Estate:

#1 – Who handles the legal documents? 

Ask the platforms you are considering who handles the legal documents. Otherwise, it could end up being a nightmare. Here at EquityDoor, you should expect that the legal documents will  be handled through the platform. 

The EquityDoor platform handles:  

  • Electronic Signatures
  • Fund Transfers
  • Investment Offers & Materials
  • Entire Transactions

#2 – What kinds of investments do Real Estate Crowdfunding Platforms offer?

Before deciding on a real estate crowdfunding portal, ask about the types of investments they offer. Variety is key. Here at EquityDoor, we provide mid-level investors a variety of real estate investment options:

  • Retail
  • General Office
  • Self-Storage
  • Multi-family Residential
  • Hospitality
  • and More

#3 – What are the disadvantages of Crowdfunding Portals?

While there are many advantages to using crowdfunding as your new digital real estate platform, there are some disadvantages to this investment style as well.

Real Estate investments using the crowdfunded method of financing are “highly illiquid.” Being illiquid means that putting your money into an investment locks you into the full duration of time specified in the target date.

There are no investments without some risk, so it is vital to understand the risks and rewards of any investment. 

Our Team at EquityDoor

The leadership team at EquityDoor has been in the real estate business for more than 20-years and understands the complexities of the ever-changing market. Our real estate crowdsourcing platform makes it easier than ever to finance real estate projects.

Crowdfunding is the next action in the evolution to provide financing for real estate investments. Crowdfunding for real estate investors allows them to raise the capital needed to fund the real estate projects they want to invest in to make additional income.

We are your trusted source in crowdfunding for real estate investments. Check out our FAQ’s or call us now at 877-963-DOOR.

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