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Updated about 7 years ago on . Most recent reply

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Axel Meierhoefer
Pro Member
  • Rental Property Investor
  • Escondido, CA
550
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676
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What's the best Crowd-funding site and why?

Axel Meierhoefer
Pro Member
  • Rental Property Investor
  • Escondido, CA
Posted

I am considering crowdfunding while I am in the accumulation phase for my next turnkey investment. I read that I can get in as low as $1000 and hold times are often only 3-6 months. Who had experience and what platforms are the best.

If you can add why it would make my day

Thanks

  • Axel Meierhoefer
  • Most Popular Reply

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    Ian Ippolito
    Professional Services
    Pro Member
    • Investor
    • Tampa, FL
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    Ian Ippolito
    Professional Services
    Pro Member
    • Investor
    • Tampa, FL
    Replied

    @Axel Meierhoefer,  I have invested in several sites, and also did a comprehensive review of the top 100, including interviewing other investors using those sites. 

     There is no one best site, as they are all completely different, and it depends on your needs. 

     In general, investing in real estate is not a short-term investment.  The average projected hold for an equity investment is five years.  The average projected hold for a debt investment is one year.  

    And the thing is, any real estate investment can run late if there are problems.  And you also always have the ability to lose some or all of your principal. 

     So if the idea is that you will need the money on a specific date in the very short term 3 to 6 months, real estate is not the ideal way to hold it.

     Having said that, there is one site that has short term debt that you are projected to  redeem in 3 to 6 months: Perrstreet 

    Essentially, they put you in typical debt, but then give you the potential option to cash out early in exchange for a higher fee/lower yield. The company itself provides the liquidity.  

    Of course, even this isn’t guaranteed because  there is a mismatch between the investment features and what the underlying investment’s capable of doing which the company is compensating for. If we went through a severe recession, and the company were to come under stress, you may or may not be able to get back your money as planned, or might lose principal. 

     So maybe this might be useful for you. But if you absolutely have to have your money available at a certain time, and can’t lose principal, I would recommend putting it into a CD instead. 

    • Ian Ippolito
    business profile image
    The Real Estate Crowdfunding Review

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