High quantity of Low investment "crowdfunding" approach

[Joshua Huggett]

There are a lot of great investment companies out there where you can easily invest online but the initial investment is subjectively high, some starting at $500-$1000. I see a market for those who are are wanting to dip their toe into the proverbial pool and test out real estate investing or those who don't have a lot of extra money but still understand the importance of investing. 

I am looking at starting a company with an initial investment of $50 and the option to deposit as much as you would like at anytime with no minimums and an option for debit/credit card linked account for round up automatic transfers. Dividends would be paid quarterly with the option to withdraw them at anytime or reinvest them for higher returns but the initial and core funds would be locked for a pre-determined amount of time (example: 1-5 years depending on the property.) Dividends would also be tiered depending on the core investment amount, higher amounts receive increased returns as an incentive to invest additional funds. 

The companies focus would be on Class B and C multi-family residential properties with the commitment and responsibility to creating safe, comfortable, and affordable homes for tenants, while being an exceptional environmental steward, and generating financial strength for our Employees and Clients.

I would love to hear your thoughts and questions on this! 

Thank you all very much for your time!

[Taylor L.]

Personally - I prefer work with savvy passive investors who have more than a few hundred dollars to invest. You'll run into a lot of securities law issues here that will make it such that a $50 investor is costing you an arm and leg in legal and bookkeeping bills.

Credit/Debit - no way. Too many problems processing payments. What happens when someone tries to pull a fast one on you and disputes a credit charge? Then you have all kinds of extra work to do to revoke their shares and such. 

In my opinion - if someone only has a few hundred dollars to invest passively in real estate, they should buy a REIT. At least then they'll have the option to liquidate at any time if they need the money back. Grant Cardone is doing a $5k minimum with his Reg A+ fund