Local Crowdfunding Real Estate Investing

2 Replies

So as a newbie/aspiring real estate investor, I attended my local REIA meeting the other day to see what it might have to offer. One of the speakers was from a local crowdfunding venture, called Neighborhood Ventures. In my research in effort to define my path, I've run across a few other similar, perhaps wider platforms, such as Fundrise. It seems that these vehicles have relatively low points of entry, maybe $500-1000, and advertise a high rate of return. I'm concerned that with this strategy being so new and without a long history to prove its track record that the current high rate of return is unsustainable, thus perhaps too risky.

Does anyone have any recent experience, good or otherwise with Fundrise or other local crowdfunding ventures? Do you think the minimum cost of entry is so low that it might be worth trying it out even if it fails? What additional due diligence should be done before jumping in?

@Martin Mondejar Crowdfunding REI is just primarily using online technology to reach a larger pool of investors for what are mostly syndicated deals. As with any investment you have to do your due diligence on the investment, and on the people behind it. What is their track record first and foremost. My own experience with making investments with a smaller crowdfunding group has been quite good, but these are not low entry points they offer.

@Martin Mondejar . Investing through most crowdfunding sites results in a passive investment, but one in which the investor can pick and choose the property and or loan. So unlike investing in a REIT or real estate mutual fund, the investor is responsible for being able to evaluate the sponsor, the platform and the individual property.