Since gaining popularity in 2013, crowdfunding is a resource that many have become familiar with. Used on a smaller scale by those seeking financial help for unexpected emergencies, crowdfunding became a nationally known phenomenon through the collaboration of GoFundMe and social media platforms.
What you may not be familiar with, however, is crowdfunding’s increasing traction among real estate investors.
In fact, Times Realty News called real estate crowdfunding “one of the most successful niches in the fast-growing U.S. crowdfunding industry” in their 2016 Real Estate Crowdfunding report.
To put this into perspective, real estate crowdfunding raised $1 billion in 2014 and $2.5 billion...
What do London, Paris, and Dubai have in common? Aside from being the most popular cities in the world to visit, none of them are the new hotspot for Chinese real estate investors.
In fact, through an impromptu IP search, Amy Bohutinsky, chief marketing officer at Zillow, found that the second most popular United States search destination for users in China was Bellevue, and the fifth was Seattle.
Wondering how the greater Seattle area became so popular? It provides “luxuries” that China is lacking: clean air, space to move around, and the opportunity to own land.
“In China, you purchase a land lease and after a certain amount of time, usually 75 years, the land goes back to the government...
In general, obtaining financing for an investment property can be difficult. Since conventional loans can be hard to obtain, many investors are using hard money lending. This begs the question, why don’t banks lend to investors?
Timeframe of Closing
The key to acquiring investment deals in this competitive marketplace is to be able to close quickly on a property. Banks are typically unable to offer financing in such a short time frame, causing investors to miss out on potential investment properties. Banks also need additional documentation and information regarding the status of the property that an investor may not have at the time of purchase.
If your property is undergoing more than a few cosmetic repair...