Apologies, I originally put this in the wrong forum!
I would very much like to try crowdfunding REI. What are some platforms you have had successes, and failing that, terrible experiences with so far? What would you consider the best platform for someone who is new to the form, and looking to invest in small, single family units via crowdfunding? I have a medium amout of seed capital and I am dying to try my hand at this!
I like RealCrowd and Crowdstreet and Fund that Flip...don’t use Patch of Land
@Zack Bloom , I’m guessing that when you say you want to invest in single-family, you’re referring to debt and not equity?
If so, there are lots of choices. In my opinion the most important thing is to look at the transparency of the platform first. If they are a top performer, they should be happy to give out that information, so to me the ones that hide that information are a red flag.
Then, look at their uncured default rate (the rate borrowers default and the platform has to go into foreclosure to try to recover funds). Some platforms are low and some are sky high. This lets you compare the risk of the underwriting on different platforms.
The platforms with the best uncured default rates are: PeerStreet, Fund that Flip, Zeus Crowdfunding and Equity Multiple.
After you’ve picked a platform, then you have to pick individual loans. You need to understand how to analyze things like loan-to-value, the impact of choosing a loan in a judicial versus non-judicial state, etc. If you don’t know how to do these things, PM me and I can send you more information.
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