Zack childress,the 21st century has paved way for new innovations and inventions in the real estate marketing. In 2013, Crowd funding emerged in the market and gained its popularity among the investors. New investors are starting their career with crowd funding methodology as it offers various opportunities ranging from commercial real estate, residential plots, office buildings etc. it allows individual investors to collaborate with other investors to use all their funds in an investment.
The REI quick cash system founded by Zack Childress throws light on how to do crowd funding where investors are getting benefited.
Crowd funding introduced flexibility factor as investors can purchase multiple properties at a time, this in turn eases out cash flow easily. The technique has widened the boundaries for the investors as they can market their properties across the country. Various types of investments are possible through which you can diversify your portfolio. The crowd funding sites does most of the work like finding buyers and assessing their risk.
Types of Crowd Funding
- equity investment
Zack Childress complaints points out about retirees who cannot indulge in home flipping. As well as, it is an art that takes long time to master as rehabbing is not an easy task. For those, automated wholesaling system is a great way to learn about co-wholesaling. Later, he must be in a position to predict the unexpected expenses that can arise during rehabbing.
Zack Childress reviews talks about Pros and cons of crowd funding.
- No connect with industry to make investment; private investors can make use of this opportunity to the fullest.
- After screening, the most profitable and legitimate investments are selected. The investors are informed about the process and crowd funding companies track the performance and investments of the investor.
- Provides an opportunity to select the investment according to your portfolio.
- You can own either single or multiple properties.
- The returns are around 8 to 12 percent
- Only accredited investors are allowed to invest.
- Fees are collected from the investors for accessing the information.
- If there are many people involved in an investment, you need to share your profit equally with all.
- In the campaign, developer plays the key role in managing the property.
- Liquidity: These investments are illiquid.
- The financial loss is incurred by the investors only; the investor doesn’t realize the fact that his money is being utilized by a developer.
- These properties are not traded. At times of emergency, you can expect cash flow easily.
- Standardization cannot be expected as these campaigns are not regulated.
- There are no core investments for diversification of portfolio.
- Fragmentation, most sites are restricted to open investments.
- To get access to open investments, you need to sign up.
There are various possibilities through which scam can happen while investing in a crowd funding campaign; you can prevent yourself from scam by learning on how to tackle those situations beforehand.