Instagram-Advertised Investments....Good or Bad?

Question

Since I've started getting serious about investing, I've started getting numerous Instagram ads about different companies/opportunities:

HomeRoom, Spartan Investments, Peoples Equity Group, Fundrise are some of them that I just scrolled past just now.

Anyone ever invest with companies like these? If so, what was good or bad?

For the experienced, what should we be looking for in such investments opportunities? Red flags?

Chris Seveney · Answer

@Cole Helm

My company advertises on Facebook and Instagram for our fund and it’s amazing the amount of hate we get. Are these legit companies - typically they are real companies because they are paying to advertise but legit is another question - just like anything and mentioned above do your due diligence on the company.

First thing I recommend is see if you can get a human on the phone, and one that can explain the investment.

Mathew Carlile · Answer

We have loved our experience with HomeRoom. We bought our first HomeRoom property last year and bought another property this year. It has HomeRoom has helped us through the process and been a very good partner with our investments.

Faron Cordrey · Answer

I’m an investor with Homeroom, and must say, my experience has been a home run.  I live in Hawaii and property costs here made local investing impractical.  So I researched dozens of rental investment organizations that catered to long distance rental investors , and only one demonstrated high yield / low risk opportunities…that is Homeroom.   Their co-living marketing strategy is brilliant, not only are rental income potentials increased by over 50%, you’re not at risk of an all or none vacancy situation.  You’re assured of a constant income stream. Furthermore, the co-living space concept is socially appealing to most young professionals, and is extremely recession proof. Additionally, their professional staff pin point the most viable neighborhoods for both optimum rental income and home equity growth, partner you with experienced local real estate experts and once you take ownership of your chosen property, they take care of everything from furnishings to placing quality tenants to hands on property management.  They are amazing.  My return on investment is amazing!!!  You won’t be disappointed.

Harrison Sharp · Answer

I own a Homeroom property and yes they are legit... Making really good returns with them as well especially in DFW where it is really tough now to find cash flow with traditional long term rentals. DM me if you have any questions.

Taylor L. · Answer

Finding them advertising social media isn't necessarily a good or bad sign. It just is what it is. Investors still need to do all of the same due diligence as if they'd been introduced in any other manner. @Chris Seveney is right, the amount of hate you get when advertising anything related to real estate investing on Facebook is crazy.

Drew Sygit · Answer

if it sounds too good to be true - it is!

Eliott Elias · Answer

Do your own vetting, most ads are BS.

Ricardo Hidalgo · Answer

If you are wanting to learn the process I would pair with a mentor or someone who is more experienced instead of investing in a hedge fund yielding the industry average. I have found that your returns and tax benefits will be better controlling your own LLC if you structure correctly. Build relationships with your local market first before you look into big institutions.

Alicia Marks · Answer

I don’t have experience with any in particular. I would say that just like purchasing a property, you need to do due diligence. Check their legal entity, BBB, ask here or within a meetup. If you don’t feel comfortable, don’t do it.

Instagram-Advertised Investments....Good or Bad?

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