5 step process for investing in real estate crowdfunding
Investing in real estate creates more millionaires than any other industry. And it just got better with the best secret, the best-kept secret in real estate all together with hands down Its crowdfunding. I’m going to tell you all about it.
All of the nuances, the tips, the tricks the lies you’ve been told, and how to get it done. Let’s go. I’m going to share with you a 5-step process for investing in real estate crowdfunding.
I’m going to tell you my dirty little secret to investing in crowdfunding and making a profit in less than 30 days. I’m going to give you the biggest best insider tip on how to avoid wasting money and time in the wrong crowdfund.
So, what is crowdfunding in real estate? Crowdfunding in real estate is super simple. It’s basically taking a very old idea and putting a new twist on it. So, real estate, we all know.
Everyone wants to invest in real estate. People want rental properties; people want to fix and flip houses. We’ve seen all those shows on HGTV and we want our check? I know that’s what I was thinking when I used to watch all those fix and flip shows. So, there are so many people that are interested in investing in real estate especially flipping houses. But we all know that it does take some money.
Either you’re going to need money to buy the property or you’re going to need money to renovate the property or you’re going to need good credit to get a hard money loan. Or whatever the situation is, you’re going to need some money even if it’s just for inspections and appraisals.
So, the new and best way that we’re going to be talking about in this post that I like cannot even believe that you are smart enough to even be looking at this is how to do it in real estate. So, the way that we do it in real estate is we pull together funds.
And again, we used to do it privately where one person was like the expert or they were the fix and flip person or they were the project manager. They would find investors who wanted to do it but didn’t have the time had a little bit of money. Maybe everybody put in $5,000.
Maybe even just three people put in $5,000. They got $15,000. They use that as the rehab budget. And they finance buying the home or they use that 15,000 as a down payment and the hard money lender lent them all of the money. But in any case, they pulled their money together so that they could get a property that they could flip for a profit or a rental property.
So, let’s fast forward to what we can do today. We take that same concept of pulling together private people’s money.
Either usually, we’re talking about unaccredited investors. Just regular people joe schmo, maybe somebody with a 401K or a little bit of a saving that wants to do some real estate. And they put their money together, they buy properties and they split the profits.
That is the basic idea of crowdfunding. You can go to different websites like the true crowd. That’s TRUCROWD.com. You can see us crowdfund there which is Nuurez.
Plus a few other different people are crowdfunding for their businesses. But when it comes to real estate crowdfunding, why we say its real estate is the funds that we are raising are going to be used only to buy income-producing properties.
So, that’s the gist of it. That’s what it is. Now, let’s talk about how you can do it and how you get a whole bunch of money too. So, we’re talking about how to invest in real estate crowdfunding, you got to know and you have to decide what is it that you are trying to do in real estate. I need you before you ever do anything before you start a crowdfund or invest in a crowdfund that you decide what it is that you’re looking for.
Are you looking to buy some rental properties and learn how to do that? Are you looking for just a check to come to your home once per year? Are you looking for the long term? For them to buy a bunch of properties and then take the company public and then sell that and then you get your money?
Again, are you looking for short-term money? Are you looking for long-term money? Are you looking for some cash flow right now? Exactly what is it that you want. You got to decide on your goals and your big why. This is the first step.
So, giving you an example. With our crowdfund, we give you 3 different ways to make money, We give you the quarterly profit distributions, we also give you a way to get paid when you give properties or refer properties to us. If we go with any of those properties, we pay out some pretty sizable marketing fees. And then we also pay marketing fees if you’ve invested and you find other investors.
So, we give you 3 different ways that people literally, all jokes aside, I have people that are investing and they’re getting all 3 streams of income just with our one crowdfunds. So, they have to make their decision. Do they just want to wait on that quarterly check or do they want to kind of be active and help us find properties? We can get more money that way. Do they want to help us find properties and find investors? And can get the money that way.
So, I have students that are getting money all 3 ways through our crowdfund. But you got to decide for you what is it that you want. That’s the first step.
Let’s get to the second step. Step 2, when we’re talking about how to invest in real estate crowdfunding, step 2 is so important. Start looking for what you want.
Now, this is kind of a newer idea. And the thing about it is I’m recommending that you definitely use an established crowdfund that has gone through the process through the securities and exchange commission, Just because I’ve been through that process, they vetted me.
They vetted my company our expertise, everybody that we had on staff. You know, they vetted our whole plan. We had to have financial accountants look at what we were going to do and what we had done before.
So, when you are looking at a crowdfund, you got to kind of look at the whole thing and just decide what it is that you want. Some of the real estate’s crowdfunds for example are not really crowdfunding.
A lot of them are no more than a trust where you’re going to put that money in and you’re never really going to get much money until they decide to sell those properties.
That’s one way that some crowdfunds or some real estate trust which is a separate thing than a crowdfund. But some people have set up their crowdfund where it works very similar to a REIT or real estate investment trust and the investors don’t get their money necessarily as regularly as some other crowdfunding.
There are some crowdfunds that payout monthly, there are some that pay out quarterly, there are some that payout annually. There are some that do not pay out any distributions until they go public with the company, So again, start looking for what it is that you want. Do you want long-term income? Do you want short-term income? Do you want education or do you want all of it?
Some crowd funds actually offer you all of it. We actually offer all of that. Even our investors, they get training because they come to our investor meetings. And we tell them exactly what we’re doing we show them the pictures, we show them the numbers, we give them really in-depth information so that they can actually start to learn.
Some crowdfund, they don’t do that. They may just tell you how much money you’re getting and then that’s the end of it. So, again, start looking for what you want. Don’t just take any old thing, don’t just go with the first one that you find unless it’s what you want.
Make a decision this is what you’re going for and then start looking for what you want, that’s step 2.
Step 3, I suggest you start small. So, when we are talking about investing in real estate and how to do it with a crowdfund, if you are investing in a crowdfund, I suggest you start small. Do not put 20, 30 thousand dollars into a crowdfund.
Yes, I know. I’m not naming names and I’m not going to say anything negative about anybody else’s crowdfund. But some of these people, some of these guys out here are requiring 10, 20, 30 thousand dollars just to even see what they’re doing. I think that’s a little risky and you might as well at that point just do it your own self.
If you have to put 10 or 20 thousand dollars into it, you might as well do it your own self because you’re going to make more money that way. Because a lot of these guys are having you put in 10, 20 thousand dollars and they’re only giving a 6% return on investment.
So again, think about what it is that you want and start looking for what it is that you want but start off small. I suggest starting with maybe a $1,000 or 2,500 or 5,000. Stay away from those ones where you have to put in 20 and 30 and 10 thousand dollars to even get in the door. That’s a little hefty especially if you’ve never done this before.
If you’ve invested in real estate before and you’re comfortable and you get it, go ahead, go all in. But if this is your first one and you’re really learning and you want to know how to do it, start small, find someone that’s going to let you do it for 5 hundred, a thousand, 25 hundred dollars 5 thousand, something to that effect. Do not start with 10, 20, 30 thousand dollars.
The next step, step 4, invest. This is the scariest part for people. You’ve done all your research. You’ve watched, you’ve read all their paperwork. You did all of this. Now, it’s time to actually go ahead and let it go. You got to go ahead and do it. You cannot be afraid. You can’t be scared. You can’t just analyze everything forever. You cannot be paralyzed by your analysis.
They call it analysis paralysis. Do not just keep looking and reading and researching in books and websites and checking this person. It comes to a point after you’ve made your decision, you know what you want, if you follow my step, you’ve made your decision, they have what you want. Go ahead and give the money.
Especially like I said if it is truly a crowdfund that has been vetted through the security and exchange commission. It’s been vetted through the security and exchange commissions you have a regulatory body that you can go to if anything goes awry.
People that have invested in my crowdfund, they know. That they literally If you know, I just ran off to Mexico and they couldn’t find me or whatever, they could call this agency and they would be able to help. So, don’t just give it to your money in 10s and 20 thousand dollars to strangers to somebody that you just found on you know at some meeting.
Make sure that it is they are legitimate and then go ahead and invest the money. Stop thinking about it. Just go ahead make the investment. Pull the trigger and just do it.
And step 5, this is the last step but it is so important. Go to the meetings. So, as an investor, they invite you to investor-only meetings. You usually have meetings you know some companies have it one time per year. Sometimes have every month. Some have it quarterly.
However often they have those meetings, please make sure that you attend. You want to do this one because yes you invested and you want to see what they’re doing and you want to get your updates and see how you know how well your money is doing. But it’s also very educational for you. You need to learn and start to see some of the numbers from the experts.
On those investors only calls where you’ve invested, they will teach you so much. And this is really what’s going to open you up either be able to invest more money or to create your own crowdfunding as well. So, take my advice, go ahead invest in one and then make sure you go to the meetings and you go on their calls or you read the paperwork that they send you so that you can learn and you can do it yourself.
So, hopefully, you got everything and you understand now how to invest in real estate crowdfunding. You get the whole process; you got the 5 steps. I’ve given you my secret sauce. I tell I’ve told you so many secrets on how I did it.
You know, I started with me crowdfund just in December of 2019 and we already have hundreds of thousands of dollars. We already have properties that we have and we are going full steam ahead. It is an amazing thing to be able to do to be able to help more investors learn and get started. If this is something that you’re interested in, I implore you to please go ahead and check out Nuurez.
That’s NUUREZ.com. You can check us out at our website or you can even go to the true crowd platform. That’s TRUCROWD.com. And then Nuurez is right there we’re right on the front page. We’re probably one of the best and fastest-growing crowdfunds that they have we’ve been awarded by them. It’s just been an amazing idea that has really taken off.
So, please take a moment when you get a chance and go check that out write it down. I’ll be forever grateful and you will too just from learning about it because you can do the same thing I did.