Investor · Lake Villa, IL · Member since 2013 · 29 posts · 9 votes
I've been researching crowd funding sites where you can invest a relatively small amount of money (5-10K) for a group of properties, with other investors, with a return rate of around 8-12%. How do you do your "due diligence" on something like this? Do you request details of each property in that group? Do you research the company that is offering the crowd funding investment? I'm used to flips and rental holds, so I know due diligence on that scale. How do you research this type of investment and make sure you are asking the right questions?
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
9y
Carin Kveton , I would say that while you can read earth the target market and type of properties, the majority of due diligence would be focused on the deal sponsor, their track record, fee structure, etc.
Investor · Lake Villa, IL · Member since 2013 · 29 posts · 9 votes
9y
Thank you, Percy. So, regarding their track record, I'm thinking it is appropriate to ask for references, check the BBB, see stats on past crowd funding ventures... that type of thing?