When you are an investor it is very important to get the best deals in order to make the most money. Our professionals are here to help you evaluate real estate crowdfunding deals. With the help of our online real estate crowdfunding marketplace, we provide a sophisticated database that will give you numerous opportunities daily. Luxe Crowdfunding has one of the best real estate crowdfunding platforms in the United States. Start today and take advantage of the best real estate crowdfunding sites.
It Is Time To Evaluate
- The Team
- Before taking any investment decision, an investor should go through the crowdfunding platform’s staff and evaluate the credentials of those underwriting the platform. The experience and a strong understanding of real estate fundamentals by the staff of real estate portal ensure that by the time the deal makes it to the platform, a number of seasoned experts have evaluated it from a variety of different vantage points. It should be kept in mind that it’s not just about looking at the financial projections, it’s about looking at the underlying real estate and at the investment thesis.
- The Sponsors
- The Real Estate crowdfunding industry is relatively new, but investors should look for platforms that partner with the strongest sponsors in the business. Generally, the best platforms choose sponsors with sizable portfolios – eight digits at a minimum, and significant transaction experience in their specific asset type. Another important aspect to be considered in underwriting deals. Investors, especially novice investors, should look for platforms that provide buffer support between an investor and the sponsor at the same time underwriting a deal and analyzing the transaction on behalf of investors.
- Local Demographics
- Investing in real estate is all about location. Before committing capital, it is very important for investors to gauge all the local factors at play. What are the population trends? Is the job market growing? If it is a residential property, are there more units in the pipeline? Are the rent rates on the rise? Investors should look for answers to these types of questions and more. It is advisable to read the crowdfunding business plans carefully, especially the market report segment.
- Net Cash Flow
- Every investment needs to generate positive cash flow to pay out returns and real estate investment is no exception. In real estate investment, the cash flow can accrue in the form of rental income, refinancing proceeds or sales proceeds. Real estate crowdfunding business plans have a projected schedule of income and expenses. The bottom line is the Net Cash Flow, income earned over expenses. Such a pro forma statement allows investors to quickly understand how the business plan helps in achieving their desired rate of return.
- Internal Rate of Return (IRR)
- There are many ways to evaluate the economic attributes of a potential real estate investment deal with Internal Rate of Return (IRR) one of the most widely used metrics. IRR is expressed in the form of a percentage range. For example, an investor buys into a real estate deal today with an investment of $1,000,000. The investor plans to exit in four years for at least $2,000,000.
- Equity Multiple
- Another common real estate crowdfunding metric used by investors is the Equity Multiple, also known as the Realization Multiple. It defines the ratio of returns to paid in capital.
Real Estate Crowdfunding Platforms
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. 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.
Contact Us Today
Ask us about our real estate crowdfunding platforms. If you are interested in learning about crowdfunding real estate investing or even some more details about real estate investing be sure to call us today! You will never to need to ask what is real estate crowdfunding. Here at Luxe Crowdfunding, we are entirely here for you. Our investing experts have the best expertise in Florida. At Luxe Crowdfunding, 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 real estate crowdfunding sites for investors.