Friday, October 13, 2017

Crowdfunding Your Real Estate Purchase

Have you ever considered crowdfunding your real estate purchase?

Do you even think it is possible to crowdfund your real estate purchase?

We live in a world of “disruption.” A world of new technologies, a place where things that once seemed impossible are now considered the norm. Uber, Amazon, Airbnb and many others have completely changed the way certain people buy and sell goods and services. A gofundme or crowdfunding campaign can be set up in minutes to get you to go visit far away places, buy a new toy, help out a friend or a great cause, right?

Is it time to consider crowdfunding YOUR real estate purchase??

Heck, we’ve seen loans where mom and dad co-sign for their kids be a popular option for years but this is different. Many new options are becoming available for people to buy and finance homes in ways they probably never expected.

One of these sites helping people crowdfund their home purchase is HomeFunded.com. A look at their FAQ page gives some answers to some questions that you should be asking.

Things like:

Who can raise a down payment? “Any person who can legally buy a home can use HomeFunded.com to raise a down payment with two exceptions. Investors and businesses entities cannot start down payment campaigns as HomeFunded.com is dedicated to helping individual home buyers.”

What happens if you don’t qualify for the loan? “we recommend that prior to starting a down payment campaign you contact a reputable loan officer to see if you qualify for a loan to purchase a home.”

Should I hire a REALTOR before starting a funding campaign? Duh! You should absolutely consult with your agent to get a good feel for market conditions, inventory levels, property types and more before you begin your journey in to home ownership. We’re obviously here to help.

crowdfunding your real estate purchase

As an example of why crowdfunding your real estate purchase could be important can be found in many articles that have been written about Millennials creating wealth (or not) by purchasing a home. Maybe you want to be a self made millionaire? With crowdfunding, you could get help with one of these 4 steps to becoming a real estate millionaire.

Obviously, this type of financing is not just for Millennials. ANYONE can participate.

As with anything, you need to be careful to find a reputable site to help if you want to buy a home with “free money.”

This type of funding can be used for getting in to commercial real estate, as well. In fact, I believe this has been more common than using crowdfunding for residential purchases. We found this interesting site that ranks and reviews a whole bunch of real estate crowdfunding websites. Take a look around.

Times change. One thing that stays the same is the fact that we’ll be around for a long time should you need any help with buying or selling real estate.

 

    Originally posted on Phoenix Real Estate Guy. If you are reading this anywhere but inside your RSS feed reader or your email client, the site you are on is guilty of stealing content.

    (c) Copyright Jay Thompson. All Rights Reserved.



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