Are you looking for more information on how crowdfunding for real estate really works? The experts at Luxe Crowdfunding are here today to explain and hopefully clear up any confusion on how it works. When it comes to crowdfunding websites for real estate, we have all the information you need to be successful. Our commercial real estate crowdfunding services are available to everyone in the United States.
Does It Actually Work?
At its core, crowdfunding means pooling money together from a group of investors to make an investment. In this sense, crowdfunding has existed in real estate for centuries. Neighbors have bought property together, husbands and wives and their sisters and brothers have collectively bought a property, and even multiple institutions have come together to collectively purchase a property.
The major difference between collective real estate investing of the past and crowdfunding for real estate today is the ability to transact online and unparalleled access to deal flow by using the internet as the new distribution platform. Given the advances in modern technology, investors can now browse investments online, securely sign legal documents online, transfer funds, and have access to investor dashboards to watch how investments are performing.
Crowdfunding Websites for Real Estate: There Are Two Types of Investments
- Equity investments (like owning shares in an apartment building) that allow investors to share in cash flow from rents and appreciation when the property is sold
- Loans that are secured by real estate (similar to a bank making a loan); these loans pay monthly interest, and the investment is secured by the property
While equity investments enable investors to share in “upside” and cash flow from rents is typically distributed on a quarterly basis, loans allow the investor to receive a consistent, monthly income stream with less volatility.
In both cases, communication about the property and the performance of the property is shared on at least a quarterly basis and tax documents are provided to investors on an annual basis.
We Are Here To Help!
Luxe Crowdfunding is an investment management platform engaged in private equity and alternative investments across a range of real estate asset class, including multifamily, senior housing, and storage.
At Luxe, we seek to generate outsized risk-adjusted returns by leveraging our experience, market analysis, and proprietary network of relationships. We focus on opportunistic ground-up and value-add developments in six MSA’s (Chicago, Dallas, Denver, Houston, Minneapolis, and Orlando).
Call Our Commercial Real Estate Crowdfunding Today!
If you are interested in learning about real estate crowdfunding or even some more details about crowdfunding websites for real estate be sure to call us today! We are one of the best crowdfunding sites. Here at Luxe Crowdfunding, we are entirely here for you. Our investing experts have the best expertise in the United States. We endeavor to excel in every service we provide, adding value for our investors wherever possible, and thereby succeeding nationally in the construction industry. We offer the best commercial real estate crowdfunding services in the United States.