Crowdfunding

Real estate crowdfunding platforms typically welcome both accredited and non-accredited investors, making it more accessible than traditional real estate funds. Minimum investment amounts vary by offering, but are often designed to be lower to encourage broader participation.

Most offerings are open to U.S. investors and may also allow foreign investors, depending on regulatory requirements. Always review the specific investment documents to confirm eligibility, minimums, and any residency restrictions.

All real estate investments carry inherent risk, regardless of past performance or market conditions. Before investing, consider these common risks:

• Market risk: Property values, rental income, and demand can fluctuate due to economic shifts, vacancies, or local market conditions.

• Liquidity risk: Real estate crowdfunding investments are typically long-term and may not be easily sold or withdrawn early.

• No guaranteed returns: Even with historical data, future returns are not promised.

• Operational risk: Investment outcomes depend on effective management, property performance, and execution of the business plan.

Investors should always review offering documents carefully and consult a financial advisor to ensure these risks align with their goals and risk tolerance.

Real estate crowdfunding investments can generate returns in several ways:

• Cash flow distributions: Potential monthly or quarterly payouts from rental income after expenses.

• Appreciation and profit sharing: Earnings from property value growth and proceeds from a sale or refinance.

• Tax advantages: Possible benefits like depreciation and pass-through income, which can offset taxable income.

Targeted returns vary by offering, and all details should be reviewed in the specific investment documents before committing funds.

Hold periods vary with funds. Most average fund hold periods are 5-7 years. This allows for invested capital to compound over time. Each fund has a target of when distributions begin – most common is after 1 year quarterly distributions begin.

Most funds have restrictions on early exits otherwise known as redemptions. All this is made clear in specific offering documents. We recommend for most fund investments invest with what you don’t need to live on and leave it in to grow.

What allows for early return of investor capital – the sale or refinance of an asset ie a property while still retaining ownership in the fund.

With private funds there is very limited access to the secondary markets to sell your interest and there can be restrictions in your offering documents that prevent it.