What are you meant to do if you simply do not have millions of dollars in spare cash lying around to pour into your next real estate investment project?
Well that is a problem for so many people that the line goes out the door ……..and around the planet. Investing into real estate has been a highly desired and much talked about goal of most people I know, it’s the talk over the morning coffee down at Bondi when I am back in Sydney, it’s the headline topic when having a beer on the beach at Wijaya’s in Sri Lanka, it dominates discussions at Singapore birthday parties, Hong Kong junk outings, or at a casual dinner in London or any major global city with friends or business partners. You get the picture.
Some lucky enough to have the $ to buy their own home have done so, others have had enough to purchase an investment property, sometimes several.
Most people think that in a good lifetime they will only invest once in real estate, if they are lucky, maybe twice, because the main barrier to entry has generally been having enough cash to put down to do the deal.
The other issue is that most people are only ever offered the “opportunity” to invest into a finished apartment or house. In this scenario, the reality of your situation is that the day you buy that house, all the value has been taken out by the developer or seller of the property, and your potential for asset appreciation, lies 100% in the future and how the market and your property will fair over time (and it could go down in value too). HINT: You need to invest at the development stage of the property, where the best returns can be found.
Well the good news is that all of this has changed. So Why Now?
It has now all changed because of connectivity and technology. Access to deals, information, knowledge and developers has always been kept to the “inner circles”, those with the contacts and money able to do these deals. Real estate developers also have limited time and contacts, and they need to focus their energy on building out their developments and cannot be focused on investment and financing the whole time.
There is now an army of fintech and crowdfunding platforms storming into the 21st century breaking down these barriers and opening up investment opportunities to their members that were simply not available before. Through your smartphone you can now invest into real estate development projects around the globe with reputable real estate companies with proven track records who will handle the entire project; none of the hassles of managing an investment property will fall on your shoulders. It’s an evolutionary and revolutionary approach to investing.
Real Estate Development Returns in Australia, UK and USA are currently sitting at 10%++ for debt or 20%++ for equity deals
We have recently funded an equity deal in Sydney with projected annual returns of 35% over a 3 year term. We are currently funding a debt deal in Brisbane with annual interest 17% over a 2 year term. These are just 2 examples to show what investment into development projects are offering. Developers I know personally, only consider deals where they can double their money in a 2-3 year period. Now you can co-invest alongside the guys who are making it happen.
You cannot get into these deals without usually having a minimum of $250,000 but more likely it is $1,000,000 or more/per deal, until now…
When raising money (and this goes for most investment industries), everyone prefers a huge investment from one large investor as the hassle and time it takes to deal with numerous smaller investors is seen as a headache and a pain, and a logistical nightmare. The crowdfunding platforms are now stepping in to handle this component and manage (mostly through technology) the necessary steps involved in making these investments for investors. Minimum investments into large scale institutional grade projects are now on offer for as little as $5,000 per investor.
And let’s prove that.
A recent study from Massolution reports that crowdfunding investors injected $1 billion into the U.S. real estate market last year alone. By the end of 2015, that number should climb to $2.5 billion. Advances like $100 investments, debt participation and availability to foreigners are contributing to this projected surge. Real estate crowfunding is an industry that is just a few years old but already starting to reach across the globe, and it is only just beginning. So it is not just for VIP’s its now open to you too.
InvestaCrowd is a global real estate crowdfunding platform headquartered in Singapore, deals on InvestaCrowd are exclusively available to our members only. Their are limited investment positions in each deal, and investments are offered on a first come first serve basis. To see the latest offerings and begin investing today, login and create an investor account at www.investacrowd.com