Crowdfunding for a beginner

[Ryan Cauzza]

     As a beginner in real estate investing I am seriously considering crowdfunding as my starting point.  I am lucky enough to have some capital to put into real estate but being in Southern California and new to investing my options are limited.  So Cal is not the ideal buy and hold area from what I have been researching.

     Obviously being a beginner I am in no position to be a flipper in a tough So Cal market with a full time job already.  I was hoping to get some users opinions on crowdfunding and the fact that it potentially offers a mulitude of deals in different areas for an investor.  

   I realize a real estate investment is only as good as the investor makes it through due diligence but if crowdfudning is anything close to the hype where would a beginner start in researching deals?

Any replies would be greatly appreciative thank you!!

[Mark Robertson]

There are quite a few real estate crowdfunding sites that enough capital and talent that you can trust them with your money.  (you can search this site and get a good handle on the top 4 or so you can trust) Once you identify the trusted crowdfunding platforms, you have to get comfortable with the developer/sponsor and then lastly the deal itself. Don't forget to take into account not only platform fees, but sponsor fees.

I made over 50 crowdfunding investments over the past 14 months and 90% are on target, 2 have far exceeded expectations and one is struggling, but I do not expect to lose any money even on the one poor investment.

You can test the waters with a minimum investment and then do more as you gain confidence.  I would suggest starting some of the 12% 6-9 month debt offerings or maybe a fund that is diversified.

Good Luck