6 Questions Every Millennial Needs To Ask When Investing in Real Estate
Crowdfunding: The Future of Real Estate Investing
Millennials may be under the impression that they can’t invest in real estate without a lot of money or the right connections, but thanks to real estate crowdfunding, millennials can join thousands of other investors who have the same goals. Crowdfunding allows young investors to invest like seasoned investors do.
Real estate crowdfunding is basically an online marketplace for real estate investments. Crowdfunding platforms offer a variety of investment options, from individual properties to funds. In fact, the choices can be overwhelming. Do you want to invest in apartment buildings, office complexes, retail properties? What part of the country do you want to invest in? Would you rather invest in a single property or in a fund? And perhaps the most important question of all, which crowdfunding platform should you trust with your money?
Here are some important questions you should ask if you are a millennial thinking about investing in crowdfunded real estate.
Questions Millennials Need To Ask When Investing in Crowdfunded Real Estate
1) How much real estate experience does the company’s management have?
Some real estate crowdfunding platforms are led by technology experts trying to learn the real estate business, but DiversyFund is different. Our senior management has decades of real estate experience and they’ve been through good and bad market cycles. The DiversyFund team performs a very careful and critical examination of each potential investment property and presents only the best opportunities to their investors. Our investors benefit from our experience and our deep knowledge of the Southern California real estate market.
2) What investment options does the company offer?
At DiversyFund, we know that some investors like to choose the specific properties they invest in, while others prefer the diversification of a fund, so we offer both. Hands-on investors can select from properties in some of Southern California’s most desirable markets. If you don’t want to choose, consider our DiversyFund Income Fund, which invests in all the properties we are developing (7 properties at this time).
3) What kind of returns should I expect from my investment?
It’s important to understand what the expected return on an investment is and to make sure it aligns with your investing goals. At DiversyFund, we know that people have different investing needs. Some people want cash flow from their investments, so for them we offer passive income investments. These deals pay quarterly distributions and offer projected annualized returns ranging from 9-14%, depending on the investment. If you don’t need the extra cash, one of our growth investments might be right for you. These typically offer higher returns that accrue for the life of the investment and pay off when the property is completed and sold, usually about 2 years from the start. In exchange for deferring gains until maturity, investors can earn as much as 18% annualized returns. Take a moment to review our latest offerings and determine which one is best for you.
4) What fees do you charge?
DiversyFund charges no origination or broker fees, no commissions and no platform fees, which means more of your money is working for you. Other crowdfunding platforms charge fees that can erode investment returns over time. At DiversyFund, we develop our own deals and aside from a standard developer fee, we earn our money only after our investors earn theirs.
5) How do I get started?
Take the time to read through the investment options to find the one that best meets your needs. Review the terms of the investment and read through the subscription documents to make sure you understand everything. If you have any questions, please contact us by phone or email. When you’re ready to invest, simply click on the Invest Now button and follow the easy steps to complete your investment.
6) How can I check on my DiversyFund investments?
DiversyFund investors can check their accounts at any time on any device. We also send out monthly construction updates and quarterly statements. Of course, you can always follow us on social media to get the latest DiversyFund news.