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
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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.
Zack Childress Real Estate Eye Crowd Funding To Attract Investors
Real estate companies that are in need of seed funding now have a new destination: Crowdfunding web sites.
- Zack childress real estate-The Wall Street Journal has reported on the rising number of crowdfunding web sites that banks on the promise of easy online investing. According to The Journal’s estimates, these crowdfunding companies have raised “over $135 million in debt and equity for real estate transactions.”
- A report on Entrepreneur.com meanwhile stated that Realty Mogul received a $9 million funding from venture capital firm Canaan Partners. Within the week, RealCrowd, another real estate crowdfunding platform, also raised $1.6 million funding from real estate developers, Y Combinator, and the Data Collective.
- Fundrise, another fast-growing crowdfunding web site, also made headlines in June when it received $31 million seed funding from $31 Chinese social media company Renren, and real estate companies Ackman-Ziff, and Silverstein Properties.
- Citing Crowdnetic data, a Sacramento Bee report noted that while the amount is nowhere near the $700 billion market valuations of publicly traded real estate investment trusts (REITs), the segment is rapidly growing in the crowdfunding space.
- Among top real estate crowdfunding web sites are Fundrise, Realty Mogul, Realty Shares, CrowdStreet, Collaperty, GroundBreaker, CrowdBaron, iFunding, Prodigy Network, and Patch of Land, according to a report on the Crowd Crux website.
- Real estate companies looking into signing up for crowdfunding platforms can position themselves to be more attractive to investors through disruptive marketing technologies. One company that offers this kind of technology is RealBiz Media Group, Inc. (OTCQB: RBIZ).
- RealBiz Media is a digital media company that develops real estate technologies that allow agents and brokers to market their listings to untapped markets.
- RealBiz Media is rapidly expanding, forging a series of key partnerships with real estate and technology companies that include forms software developer zipLogix, and Atlanta-based Coldwell Banking Residential Coverage. Its clients include nationally-recognized real estate firms Keller Williams, Era Real Estate, Century 21, and Prudential Select Properties.
- As proof of its steady growth, RealBiz Media recently acquired real estate social media marketing platform ReachFactor to beef up its marketing platforms.
Crowdfunding investing is not without challenges, however, the Sacramento Bee report noted.
“If you look back at online stock trading 20 years ago, all of the same kind of early adopter concerns people raised are the same here. Will there be fraud? Will people know how do to it? Will they adopt it?” EarlyShares executive Joanna Schwartz told Sacramento Bee.
But Schwartz believes that crowdfunding website’s ease of use and money-saving features will succeed in luring investors in.
“Going direct, there are a lot of fees we are saving for both sides here,” she said.
RealBiz Media also runs a video on demand channel under the Home Tour Network, according to the Stock Lama website.