fbpx

Crowdfunding Series – Part 1: Power In Numbers

FINANCING A DREAM? Use the Might of the Crowd to Support Good Causes!

We’re glad you came here today in search of a method to support families, improve your community and generate excellent returns. At Equity & Help, we are aware of the value of combining resources with others who have similar objectives since, as the saying goes, many hands really do make light work.

Our procedure is specifically set up to allow folks who lack the typical money needed to purchase their first three properties ($150k–$180k) alone to still take part in our aim to build communities via real estate investing.

We provide a number of options for anyone who wants to get engaged, but don’t have the whole amount required to accomplish it directly including crowdsourcing and creating an LLC partnership with other investors. (Check out our LLC Starter Kit)

 

What Is Crowdfunding?

Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together, with the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists.” 

Tim Smith – Investopedia.com

Crowdfunding investing gives consumers a special chance to take charge of their money. It was previously impossible for investors to choose the projects and businesses they wanted to invest in, but crowdfunding provides them this choice.

This not only enables individual investors to participate in investment opportunities outside the scope of their existing expertise or comprehension, but it also gives entrepreneurs access to crucial funding during the early phases, when conventional outlets are few. By putting little sums into several projects, crowdfunding also enables you to diversify your portfolio and lower risk.

Instead of merely giving money, you may obtain returns on your investment by taking ownership shares and becoming equity holders. This avoids relying exclusively on the volatile public markets for stocks.

Additionally, it’s frequently simpler than ever for startup entrepreneurs or would-be inventors because market-based funds already do (and will keep doing) an excellent job of gathering large networks of angel investors who would ordinarily pass these opportunities up because they weren’t previously accessible.

Overall, crowdfunding offers people an unmatched opportunity to create wealth with relatively lower associated risks compared to other forms of conventional investments, such as stocks or bonds, if done wisely and with the necessary research and assessment involved. Industry experts have been advocating it, and it is quickly gaining popularity as this form of financial investments presents new potential lucrative opportunities for both those backing and others seeking resources alike.

Every month, private banks and suppliers send us thousands of REO (Real Estate Owned is the term for a property owned by a lender because it failed to sell in a foreclosure auction after the borrower defaulted on their mortgage. Banks attempt to sell their REOs using a real estate agent or by listing the properties online) and foreclosed homes (whom we conduct hours worth of due diligence on prior to purchase). Then, our staff works hard to offer customers properties that are 40% to 60% less than their After Repair Value (ARV) price.

Families that purchase these homes are liable for any upkeep or repairs required to bring the property up to its ARV. Throughout their ownership time, they will also be obligated to make recurring payments for insurance and real estate taxes. In addition, these reduced rates include some pre-habilitation work that we have previously finished, so purchasers won’t immediately have to worry about unforeseen maintenance bills after moving in.

As part of this initiative, every property is sold equipped with owner financing that is specifically targeted toward qualified candidates who would not be able to afford traditional mortgages, allowing them to live comfortably and raise their standard of living in relation to becoming healthier, more vibrant neighborhoods. We want to provide opportunities for homeownership as well as real estate investments.

PhilanthroInvestors (PIs) that remain dedicated over time and receive consistent double-digit returns for up to twenty years are able to build up their wealth above the level of a hobbyist into something much bigger. And it can be achieved even if you don’t have all the funds by yourself, all thanks to crowdfunding. 

And if you need help with that, we are here to help. Schedule a discovery call now!

 

See you next week when we discuss the many forms of crowdfunding!

More articles