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multifamily_investing

Jan 27, 2021

The Pros and Cons of Investing in Multifamily Real Estate

Investing in multifamily real estate is a smart way to diversify your portfolio. Investors find multifamily real estate attractive because it lends itself to a slow and steady return on investment. Between Covid-19 and rapid changes in politics, today’s economic outlook is uncertain and rookie and seasoned investors alike are looking for investments that will grow their capital.  Multifamily real estate is less complicated than other commercial real estate opportunities and can generate a strong cash flow. Keep reading to explore the key pros and cons of multifamily investing.  What is multifamily real estate? A multifamily property contains more than one rentable unit - like an apartment complex or high-rise.  Investing in rental properties, like multifamily units, is a preferred strategy for investors who want to generate an additional monthly income at a relatively low cost.   What are the pros of investing in multifamily real estate? Investing in a multifamily property holds its fair share of advantages.  Large demand = lower risk. Multifamily investing is considered a safer investment than other real estate assets. Even in the face of economic uncertainty and poor job markets, people need a place to live. During an economic downturn, rental properties may see a boom as people sell their homes, relocate, or move into a rental.  Grow your portfolio faster. Investing in multifamily real estate is a unique opportunity to expand your portfolio in a short period of time. It’s a lot easier and timelier to acquire 30 apartment units than to acquire 30 single-family homes. Avoid the headache of multiple loans, sellers, and inspections by investing in a multifamily property.  Streamline your property management. Investing in a multifamily property improves daily efficiencies in your property management. By managing one property with multiple units, you save time and money traveling between properties to perform maintenance duties. Also, it makes more financial sense to hire a property manager for a multifamily property rather than a string of single-family homes.  Increase your cash flow. One of the biggest advantages to investing in multifamily real estate is the ability to significantly increase your cash flow. Investors are attracted to multifamily properties because of the predictability of income each month. In both bull and bear markets, rents are collected each month, and units are easily turned over for new leases leading to a steady cash flow.  From lower risk to higher rewards and increased efficiencies in your property management, put your investment capital to work with multifamily real estate.  View open investments with Holdfolio.  What are the cons of investing in multifamily real estate?  Despite the strong advantages of investing in multifamily properties, we wouldn’t be doing our due diligence if we didn’t share some of the drawbacks of this investment strategy.  Increased competition. The advantages of multifamily real estate draw attention from new and experienced investors alike, creating strong competition in the market. This can pave the way for more experienced investors to crowd out the market because they may be more likely to pay in cash or appeal to sellers. Newbie investors may find luck partnering with experienced investors or joining a real estate crowdfunding platform like Holdfolio.  Higher upfront cost. Depending on where you’re investing, multifamily properties can be extremely expensive, much more expensive than a single-family home. Cost tends to be the biggest barrier to new investors, even for seasoned investors. Most banks look for investors to put down at least 20% as a down payment. However, banks are more likely to grant loans for a multifamily property than a single-family because there is less risk involved.  Despite the higher upfront costs and competition, avenues like real estate crowdfunding platforms have become attractive to multifamily investors. Crowdfunding platforms allow investors to put a small amount of capital into a property to become a shareholder.  Diversify your portfolio and increase your cash flow with multifamily real estate in 2021. Assess the pros and cons and seek the best investment for your wallet.  Start investing with Holdfolio today. 
real_estate_investing_2021

Nov 20, 2020

The Impact Of The Coronavirus on Real Estate Investing in 2021

It’s been more than six months since COVID-19 hit the country, and ever since then millions of Americans have been affected by the financial, economic, and social implications of the pandemic.  From national lockdowns to financial insecurity, the real estate industry has been dramatically impacted. But, what does real estate investing look like in 2021 as we begin to gain more certainty on the path forward? Keep reading to learn about investing in real estate in 2021.  The Impact Of Coronavirus On Real Estate When the coronavirus shut down businesses and schools across the country in March, the effects of the pandemic on real estate and investing were felt almost immediately. Tenants fell behind on rent, mortgages went into forbearance, vacation rentals were canceled, and property sales decreased.  Despite the effects of a national lockdown, the real estate market has seen a rebound in the second half of 2020. In fact, home prices were up 15% year over year at the start of November and Zillow predicts that home values will increase 4.1% in 2021 due to renewed market optimism and spikes in sales this summer and fall.  While the long-term effects of the coronavirus on real estate are still uncertain, rebounds in the market this fall have given investors and buyers hope for 2021.  Real Estate Investing Opportunities In 2021 New and experienced real estate investors may be unsure where their best investing bet lies in 2021. While there are housing booms in cities across the country, many Americans still find themselves in precarious financial situations and may not be in a position to buy a home.  This poses a unique opportunity for house flippers. With lower demand in some areas, prices are driven down and the opportunity to flip houses is valuable and lucrative.  Access to capital and loans may be an issue for some investors with lenders slower to give out loans at a time when many people’s finances are in a sensitive position. This positions real estate crowdfunding platforms at the forefront of real estate investing in 2021. Crowdfunding platforms allow investors to invest in real estate in a low-risk high-reward model. The initial investment is low, it’s mainly passive, and is a simple way to diversify your real estate portfolio. Learn more about real estate crowdfunding platforms for accredited and non-accredited shareholders like Holdfolio.  Vacation rentals also provide a way to make some extra cash on the side. With people in between jobs or considering relocation, the demand for short-term living arrangements is on the rise. Rental platforms like Airbnb and VRBO can also be more lucrative as you charge guests more for a short-term stay versus traditional renting.  Lastly, the value of apartment complexes continues to rise. With cities converting office spaces into apartments and young people looking to rent instead of buy due to job insecurity, expect multi-family investing to be on the rise in 2021.  Real estate investing in 2021 may seem uncertain. But, there are many unique opportunities to diversify your portfolio with real estate in the new year. Assess your options and seek the best investment for your wallet. 
Real Estate Marketing

Nov 22, 2021

How To Syndicate Real Estate: A Simple and Complete Guide

Real estate syndication is no longer the elusive and lucrative private collaboration between the ultra-rich that it once was. It has now become an attainable collaboration between regular people who want to become ultra-rich. But don't be fooled into thinking you've stumbled upon an easy process. With high stakes at play, the game demands palpable responsibility. This guide will show you how to syndicate real estate deals and tap into higher earning potential the smart way. Before we begin, let me tell you the easy way to start investing. By the end of this article you will have a good understanding of the scope of work involved in syndicating a real estate deal. For those who possess the competency and experience to manage a high-end deal, but not the funds, forming a syndication and partnering with investors can be the Ace of Spades to achieving financial freedom. But that doesn’t mean it’s an easy job. Forming syndications can be riddled with potential issues to work through in every step of the process. If your investor team is not a carefully hand-selected group of trustworthy individuals, the entire syndicate may be compromised down the line. It’s not hard to find honest partners, but you need to be aware of who is out there. If you have any doubts about your competencies, or you’re not committed to following through with the project in the face of a few rough challenges, our advice is to search for an alternative way to get involved with syndication. Syndicating with Holdfolio’s crowdfunding platform gives you the same high-returns with none of the responsibility that comes from running your own venture From finding exclusive investment properties, to vetting all potential investors in the syndicate, and taking care of the day-to-day management of the property - Holdfolio takes care of everything so that you don’t have to. Simply choose your investment, deposit your stake, and then sit back and enjoy your newest revenue stream. Investing with Holdfolio is a safe and smart choice thanks to their ‘winning together’ policy. Holdfolio is so confident their crowdfunding listings will be a financial success, they purchase a stake in every property. Meaning that your interests are aligned and you can trust Holdfolio to make the right choices to improve your ROI throughout the partnership. Not only do you get healthy returns on your passive investment - currently around 19% - you gain a more in-depth understanding of syndication from the front line. Many of Holdfolio’s investors hold accredited status, but the portal is also open to non-accredited people who can join up with as little as $20k. To grow your wealth with decreased risk and increased returns, partner with Holdfolio today. Investing Made Accessible Syndication through crowdfunding brings deals that would be otherwise unattainable to individual investors within the syndicate's financial horizons, through the power of collective resources. Let's compare an individual's project scope during an investment’s lifespan, versus the work involved in collaboration. Independent investors must first conduct research to locate a slice of real estate within their financial means. They produce all the funds upfront, renovate and maintain the property themselves (or at least foot the bill for it), and exert time and energy on the day-to-day operational tasks. When it comes time to exit, the individual sells the property for profit, based on appreciation minus operative costs. When growing an investment as a team, the compounding financial and intellectual benefits are greater than the sum of their individual parts. The sponsor delivering the project and each investing partner can take advantage of scalable, more profitable assets which bring two immediate financial benefits: greater monthly cash flow dividends a higher resale profit margin How about the advantages of shared intellectual resources? When parties bring an array of knowledge, skills, networks, and experience to a joint venture, they each input their best offerings to ensure the project is as effective, streamlined, and profitable as possible. The pooled intellectual resources of a syndicate guides the investment strategy, and can significantly affect the outcome for all partners at the end of the investment term. Any investor will confirm that experiential wisdom is as much an asset to your business as the asset itself. Let’s Syndicate Real Estate Deals It's clear to see why people get involved with syndication. The road to achieving success is a steep learning curve even for those who have done it before, and the benefits are worth it if you can pull it off. Let's take a look at what it takes to be a real estate syndicator, and learn how to approach the path in bite-sized steps.  Use this guide as an opportunity to explore whether you have the competency and expertise to handle the job of a real estate syndicator - if you do, it could be a big win for you. 1. Research and More Research Syndicators need to constantly and effectively learn and adapt their game to provide the best outcomes for the syndicate.  We can't stress this enough: as you learn how to syndicate a real estate deal, keep upskilling. A passive investor has one role: providing cash upfront for a solicited deal in syndication. Sponsors, on the other hand, shoulder the burden of hunting for the right deal, relying on their network, inbound and outbound lead generation, as well as experience in due diligence. Then when the right deal comes up, sponsors crowdfund with limited partners to provide the required capital for the purchase. Here are a few points about the research phase: The Securities and Exchange Commission (SEC) will mandate you form a syndicate when piecing together a deal with passive investors. This is because investors trust you to manage the fund in the same way as they would trust a fund manager when investing in a publicly-traded stock. Under certain conditions, 'Regulation D' provides exemptions from the costly and timely process of filing a 'Registration statement,' allowing issuers to raise money from accredited investors, and in rare cases, non-accredited investors. To provide partners with reassurance, syndications require a government-regulated Private Placement Memorandum. This is how the agreement is set up, as well as the returns and risks involved. It’s best to hire a syndication attorney to protect assets and limited partners from litigious sharks, and to establish the agreement within a legal framework. Syndication lawyers can cost between $450-$1000 per hour, so buckle up and tap your network. Always seek advice from a professional when investing money and taking part in a syndicate. A good place to start is with Holdfolio. They offer investors and newbie sponsors invaluable guidance throughout the journey. Now you've polished up your knowledge of syndication, how do you know who makes a worthy and legitimate partner? Sponsors need to become effective at building a network of pure, passive accredited investors, and learn to get around other people. It's time to start building your investor team. 2. Create your Investor Team  Sponsors use mature and well-developed networking skills to their advantage when forming syndicates. Mutually trusting and beneficial connections built throughout a career, or through various life paths can yield great limited partners, lawyers, accountants, property management, and friends to pool together to ensure the venture's success. Ideally, relationships that foster trust between individuals would be at the forefront of joint proposals like real estate syndication, mainly because of the liability a sponsor holds towards their passive investors. Look out for truthfulness, good business sense, and proficiency in potential partners. Find people you can meet with at least quarterly for updates. With a rise in virtual meeting channels available, it shouldn't be considered a roadblock if partners are not in close physical proximity. To build a network of like-minded and experienced investors, professional networking sites such as LinkedIn are great resources to source skills, networks, and the capital you seek. Another practical option is a website called Meetup, designed to organize local gatherings fx interested in undertaking similar projects. By embracing these tools, sponsors can also watch out for meetings in their area that add value to their business dealings. Bark is a great website to link professionals with people who require their services. This can stimulate your inbound and outbound network to connect you with the right people. The most powerful platforms yet are undoubtedly online crowdfunding communities like Holdfolio. They are uniquely created for passive investors and sponsors alike who show an active interest in pursuing real estate syndications. Through professional syndicators like Holdfolio, you have a far greater chance of securing accredited investors - those who are serious and are backed by the capital to make the project a success. For first-time sponsors, it's advised to partner with experienced investors who can provide mentorship and offer their expertise as you make your own way as a syndicator. When assembling a team, consider which skill sets, proficiencies, and networks are going to complement those that you offer. Use these to align interests toward the syndication deal and shape a tight strategy outline. 3. Locate and Analyze Properties Once a healthy team with synergetic qualities has been assembled, and a preferred investment strategy has been identified for consideration, the sponsor will scour deals until they have found "the one." The nucleus of this stage is property location and analysis. Location Depending on state laws, accessibility requirements (most likely gauged by whether the sponsor will undertake operational responsibilities, or whether the syndicate has voted to outsource), you may search for in-state or out-of-state opportunities. The important components of location searches include the following: local employment rates population growth location desirability (proximity to education faculties, public transport, a central business district or noisy roads, as well as neighborhood crime rate, can all affect property appeal) These factors impact occupancy during the investment term, and will often affect the resale value of an asset. For example, in regions that encounter mass exodus, sprawled populations in the outskirts of the central business district are the first to leave. This lowers the demand and therefore the resale value of commercial real estate assets. Similarly, because land is a finite commodity larger lots appreciate more steadily than comparable assets on a smaller plot of land. Development plans in any given place can influence future location desirability and can be used to forecast resale projections at the end of the investment term. This should be thoroughly weighted within your strategy. Analysis Match the deal with the syndicate's goals and chosen investment strategy. The flexibility available when you syndicate real estate deals means you can select a unique approach aligned with the group’s interests. Multifamily properties are optimal for beginning commercial real estate syndications because they are less complex operations than retail or office space. Moreover, they vary so greatly in size and scope. From the smallest duplex condominiums to multiple hundreds of units under the same roof, multifamily offers the freedom to choose what works best for the syndicate. If the goal is to maximize return on investment (ROI) in minimal time through forced appreciation, select a deal suitable for property flipping. Alternatively, if the goal is to hold the property long-term and enjoy passive cash flow generated, go for a primed asset so you can easily outsource the operative work to a third party. 4. Time to Manage Sponsors have a fiduciary responsibility towards passive investors to manage the legal framework, accounting, strategy implementation, and daily duties of the project. Large-scale property management can be a full-time job and in some cases even a career in itself! In this role, you have the responsibility of overseeing occupancy, collecting rents, arranging maintenance and repairs, property development, handling complaints, and legal regulations and safety compliance, to name just a few. Sponsors actively undertaking property management roles can attract a larger portion of the investment shares to compensate for the time and energy they dedicate to ensuring the syndicate’s success. Hiring property management is more affordable with multifamily and single-family investments because the revenue yield is greater. That said, the onus of overseeing operations still lies in the hands of the sponsor, so make sure your resources and expertise are secure enough to handle the job. Hands-Off Mode All things considered, real estate syndication can offer sponsors the opportunity to enter the deal with a hands-off approach and get almost as much freedom as passive investors during the investment term. Everything gets easier once you have a trusted and reliable property management team to handle the daily operations for you. This team could come from your network or someone in your syndicate's network. Holdfolio is a great example of how easy syndication can be.  They have a vertically integrated property management team to remove the hassle of daily burdens from the hands of their investors. If the responsibility of dealing with management sounds too high-energy for you, consider a syndicate with Holdfolio. It's a great way to learn the ropes without the risk, and experience how effective syndication works. 5. Cash Distribution Recurring cash flow is an appealing advantage of real estate syndicate investing. Cash flow is determined by the net operating income of the asset. This number is calculated by adding the monthly gross rental yield of the property and subtracting monthly expenses, including property management, renovations and repairs, insurance, and other levies. The remaining value shows the revenue distributions for investors. A passive investor will enjoy healthy cash dividends throughout the life of the project. Cash flow is derived from the investor's preferred return in the investment, generally streaming from rental income. Sponsors profit from the acquisition fee - around 1% of the purchase price of the asset - and can charge a property management fee if they choose to take on this responsibility rather than outsourcing. All shareholders distribute monthly profit shares after investors have received their preferred return. The numbers are up to each syndication to agree on. Let's look at an example of how this may work: Four investors contribute $250k towards an asset valued at $1 million, with a 5% preferred return. The sponsor charges a 1% acquisition fee of $10k. Each of the five people owns 20% of the syndicate. Assuming the building's NOI is $80k, each investor will get a $12,500 preferred return, or $50k total. The remaining $30k is divided five ways, so each individual receives an additional $6k. Passive investors make $18,500 annually, and the sponsor makes $16k. Profit from the property's resale value also splits five ways, so if the property appreciated 30% and sold after five years at $1.3 million, each party would gain an additional $60k. At the end of the investment lifetime, each of the passive investors walks away with $402,500. Let's now take a look at how this may work with Holdfolio's Return on Investment Calculator. If an investor was to contribute $250k through Holdfolio's crowdfunding syndication platform, after five years their estimated investment value would be at $410k, with an annual cash flow of $32,800. Under these circumstances, investors also enjoy entirely passive income because they don't have to engage with any day-to-day hassles: Holdfolio takes care of the hard work. Compare this with $250,000 invested in stocks. Even with the same appreciation rate of 30%, investors would only walk away with $325k. It's clear that syndicating real estate works harder on the dollar for any partner. Summary Learning how to syndicate a real estate deal is not a game for the fainthearted. For sponsors with the expertise, competency, and confidence to sink their teeth in, collaboration can lead to unbelievable gains and success. For those who don't have the skills and confidence to make it work, syndication comes with risks that should be addressed before embarking on such a pursuit. If you're still unsure whether you've got what it takes to syndicate a real estate deal, the best way to learn is to take part in a low-risk option and learn from the experts. By becoming involved as an investor, tomorrow's sponsors gain invaluable first-hand experience in a syndicated deal, increasing their chances of successfully pulling off these types of deals in the future.  Holdfolio has successfully delivered syndication deals for more than twenty years with a great track record, and the refined process removes the hassle and risk associated with forming syndicates. It's easier with Holdfolio. Simply sign into the online portal, select youvr investment asset, then choose the amount you wish to invest. To learn more about effective syndication, partner with Holdfolio today.
out of state investing

Nov 4, 2021

Out Of State Real Estate Investing: How to build a system for buying properties remotely

If you live in a region where real estate is costly, investing in out-of-state property may sound attractive. If you currently own a house but want to diversify your assets, it may be appealing. It's possible that all you want is to purchase a vacation house. Alternatively, your motivation might be a combination of all of these factors or something else entirely. Regardless of your motivation, out-of-state real estate investments are great for passive income. But how do you get started in a state that you don't know? Here's Holdfolio's guide to out-of-state real estate investing.   What is Out-of-State Real Estate Investing? First, let's talk about what exactly out-of-state real estate investing is. It literally means investing in a real estate property that is not in the state that you live in. There are four primary reasons why investors buy rental property outside of their home state: Investing in locations where population and employment rates are both significant. Diversifying a rental real estate portfolio by investing in locations that fit your investment plan. Concentrating on the kind of returns you want, such as maximum cash flow, high appreciation, or total yield throughout the holding term you've set. In areas with fewer restrictions, cheaper real estate taxes, and landlord-friendly legislation, maintenance costs are cheaper. How To Start Investing Remotely The Easy Way Investing in out-of-state rental properties starts with doing your homework. Making informed judgments can help you make great selections. First and foremost, you should be pre-approved for financing so that you can make an offer promptly when you locate the right bargain. Locate the markets where you're most likely to meet your financial objectives, then do comprehensive research on the area, the property itself, and the seller. Because you won't be able to meet the seller in person or even view the property, you'll have to compensate by doing as much research as possible. Now let's get real. In order to be able to make the best decision about your investment, the local market, type of property, laws, and regulations, financing, and more it will require enormous amounts of time and effort. As a busy investor already you would not want to travel to different states or spend days, if not weeks, online researching. But there's an easy way to do all of this. You can just sign up for Holdfolio's online real estate investing platform and let us handle all this work. When you sign up for Holdfolio's online platform, you can handpick the properties you want to invest in from the listings provided and updated by Holdfolio's team of realtors. You can invest as little as $20k and start enjoying your passive income because when you invest with Holdfolio, you won't have to find a property manager or physically visit the property. Holdfolio has it all for you. There's a team of professionals to help and guide you through every step of the way such as preparing to buy a property, finding information about the local real estate market, finding tenants, managing the property, the day-to-day liabilities of the landlord, and more. Contact us and let our team of professional realtors help you find your next passive income resource!   Before Starting Your Investment Journey... Before putting your money in an out-of-state real estate investing make sure to think through your goals and your finances. You can draft a business strategy and take notes of how much you want to invest and how much you want to have in return in a year or so by using the Return on Investment Calculator by Holdfolio (Scroll to the bottom of our online real estate investing page to find it). Make sure to have a strategy in mind because that will make it easier for you to reach your goals. If you are not sure about how to advance with your investment, Holdfolio is ready to help you. As mentioned earlier when you invest with Holdfolio, you will be provided with a property manager and you will have constant assistance from our team of professional realtors who can help you build a solid strategy. Make sure to utilize the available online tools to save time and money, like Holdfolio's app.   How And Why Out-of-State Investing Works There are various benefits to out-of-state real estate investing:   Higher Returns on Investment There are two significant financial advantages of investing in a property out of state: When you can afford a larger down payment, your cash flow improves. For example, if you have a $25,000 budget to work with. When you buy in a market where property values are $100,000 vs $200,000 or more in a high-cost location, your LTV will be more reasonable and your revenue stream will be higher with a reduced loan payment. When you invest in out-of-state markets that make sense, your return on investment is higher. Purchasing rental property in an undervalued market with a big population and job growth potential might result in considerable market value appreciation over time. With greater equity from appreciation, your return on investment is maximized. Finding Real Estate Market Diversity The location of your rental property has a significant influence on your investment plan. Single-family homes are ideal in family-friendly suburban submarkets and some urban districts. Millennials and singles are prepared to pay a higher rent for a smaller space, on the other hand, like highly populated mixed-use areas where people live, work, and play. To comprehend what you're looking for before exploring out-of-state areas to buy a rental property in, you need to know what your preferred investing plan is.   Diversifying Your Portfolio Diversification is the fundamental guideline of risk management in investing. And, if you're seeking to flip houses for a livelihood, buying a house out of state is one method to diversify your real estate portfolio and keep your business afloat. Instead of focusing on finding the greatest rental property in a single market, smart investors focus on owning one or two properties in the correct out-of-state real estate markets to reduce risk and increase profit. If you invest only in one market, you might end up losing all of it if the market crashes.   Potential Appreciation There is limited opportunity for property prices to rise without considerable income growth when the ratio between local incomes and home prices becomes too high. In a healthy real estate market, the ratio of house prices to household income has historically ranged from 2.5 to 4. However, according to the Brookings Institute, average property prices in certain places are more than ten times greater than average wages. Without higher wages, it's just not feasible or sustainable for these places to experience much more appreciation. Challenges That You Must Consider When Choosing Far Away Properties Investing the time and energy to study the market is one of the most difficult aspects of buying rental property out of state. While the potential returns are higher, investing outside of your local market comes with a steeper learning curve. Here are a few potential downsides of renting a property out of state, as well as ways to prevent making a costly mistake:   Skipping Research Not doing the research before investing in an out-of-state property is one of the biggest mistakes an investor can make. Make sure to complete in-depth research and connect with local investors and investment companies. Hiring a knowledgeable and experienced property maintenance company that can support your due diligence and property assessment can help you eliminate the most common mistakes that investors make. Finding Tenants Long-distance real estate investors are attracted to rental properties because of the revenue they provide. As a result, they concentrate on full rental properties and modest multi-family ventures. Cash flow from a turnkey rental property begins the day escrow closes if the property is already occupied. Unfamiliar Local Real Estate Markets When you're investing in real estate in another state, you will need to study the local market. Unfamiliar local real estate markets can be challenging to understand. For example, in some areas, the laws are substantially stacked in favor of the tenant. While there may be a high demand for rental properties in certain areas, regulations and policies that favor tenants may limit ROI and cash flow. Investigate local regulations and market norms by speaking with property managers and joining local investment organizations to have a better understanding of the real estate market.   Unfamiliar Real Estate Laws Another problem is deciphering the rules and regulations governing property ownership and property taxes in your desired location. Even if you study every line of the municipal laws and regulations, what is written on paper does not necessarily correspond to what occurs in the actual world. Talk to local property owners to obtain a better grasp of the issues.   Misleading Expenses Similarly, it's difficult to correctly estimate remodeling expenses and, therefore, how much it would cost to flip a home without seeing it firsthand. Of course, photos are helpful, and you may acquire many prices by consulting a local Realtor. However, it's difficult to be certain about the repair bills and financing of a house fix and flip if you haven't visited the property in person. It's a danger that's amplified when you choose contractors you've never worked with before, and it might jeopardize your house-flipping business strategy.   Tips For Finding A Great Property Manager When buying an investment property in another state, the principles of how to pick the appropriate Realtor remain the same. Their expertise working with investors is one area where you should pay special attention. When they stroll through potential houses, you'll be relying on their knowledge and vision. Realtors who have worked with investors and investment homes before will know what to look for—and what to look out for. You should look for property managers who are experienced and well-trained in the type of property you want to invest in. Your property manager should be an expert who is able to forecast an approximate return on your investment. Your property manager should be able to provide you with pre-inspected properties. Your property manager also should be able to tell the indicators of economic growth in the region you are interested in. Finding a property manager can be a time-consuming task as you cannot just trust anyone you see online. It'll take lots of research, asking for referrals, related documents and certification, and more. But as we said before, when you invest with Holdfolio, you don't need to worry about finding a property manager. Holdfolio has property managers who are experts in their areas and can help you with everything you need.   Letting Someone Else Operate Your Investment Property Consider turnkey homes if you want to invest in out-of-state rental properties that require less maintenance before being rented. A turnkey property is a fully refurbished home or apartment that is ready to rent. In certain situations, the property is already leased and has a renter, so you'll have a tenant and cash flow right away. Hundreds of firms around the United States, such as Holdfolio specialize in finding, maintaining, and selling rental properties. Working with Holdfolio has various benefits for out-of-state real estate investors such as: Accessible investment with low minimum investment, you can become a partner with an investment of as little as $20,000! Easy and transparent--you can calculate your potential returns on your investment by using the Return on Investment Calculator on Holdfolio's online platform. Small diversification, you can decrease your risk and increase your returns with multifamily investing. Vertical integration includes a construction company, a property management company, and a real estate firm, all under the same name: Holdfolio. You can learn more about out-of-state real estate investing online with Holdfolio here.   More Reasons To Become An Investor In Different States There are various reasons why investors choose to invest in out-of-state real estate. We've listed some of them before in this article but let's dig deeper.   Grow Your Portfolio While Diversifying It Other investment options may be discovered through out-of-town rental homes. For example, you may start investing in rental homes in another state and your real estate professional may also be able to assist you to find attractive commercial property deals. You could find yourself diversifying your real estate portfolio to include commercial properties or fix-and-flip chances. Buying a commercial property will broaden and diversify your real estate portfolio and experience. You may also be able to acquire additional real estate assets because you are in a more inexpensive market.   Having a Vacation Home If you've been to the area more than a few times, you could always buy a vacation house there. You can utilize it for a few weeks or months each year with your family. When the house is empty, you may rent it out to guests on short-term leases or through services like Homeaway or Airbnb. Guests leasing out your holiday home for their holidays might help keep your vacation home's expenditures down and ensure that it is used all year. In addition, the revenues from your holiday property provide a second source of passive income.   Conclusion Investing in out-of-state real estate can be a great source of passive income when you do it well. But doing all of that homework and research can be difficult. Having a real estate investment company like Holdfolio by your side to assist you whenever you need will ensure that your investments won't fail and you can just sit back and enjoy your passive income! Investing with Holdfolio is so easy! All you need to do is sign up to our online platform, choose the property from regularly updated listings and invest the amount of your choosing! Holdfolio helps real estate investors, both accredited and non-accredited, to find more secure investments with their years of experience and hard work. Sign up today and start growing your wealth through passive real estate investments!
spilled change on the table

Nov 4, 2021

How To Invest In Real Estate With Little Money: 5 Proven Tactics

Success is not being born with money and opportunity, rather it comes from what you do with them. Not everybody embarking on a real estate investment journey begins the race with a lot of capital, but we all have common opportunities. There are many creative ways to start investing in real estate, and we're going to teach you how to begin today by recognizing and leveraging the options available to you.   Real Estate Crowdfunding Real estate crowdfunding is a way of raising funds for real estate investments by becoming a part of a group of investors who each contribute a set amount to the acquisition. Simply put, it is a technique of collecting finance that allows small-scale real estate investors to participate in large-scale projects. Due to its high returns and low risk, real estate crowdfunding is one of the best passive revenue sources for investors. Holdofolio has put together a simple, efficient approach for customers to obtain access to lucrative real estate offers. Interested investors can browse active investments and handpick the property they want to invest in after signing up for access to Holdfolio's web portal. Learn more about non-accredited investor crowdfunding with Holdfolio. How Does My Financial Situation Affect My Crowdfunding Opportunities? Usually, real estate syndicators accrue investors by gauging an individual’s economic status to determine their eligibility for investment. Accredited investors are those who can meet predetermined financial requirements. With a sufficiently high income or net worth, accredited investors have a golden pass into real estate investment opportunities. Most real estate investment companies preclude non-accredited investors from partnering with them. Holdfolio's crowdfunding system is designed for non-accredited investors. Low capital applicants can now profit by passively investing in multifamily properties. Typically, investors are required to deliver a $50k minimum holding upfront. With Holdfolio you can enter the game with as low as a modest $20k in the bank. What’s unique about Holdfolio’s approach is that by slashing the barriers to entry into a multifamily investment, regular people gain access to the same rewarding deals as pro investors. Crowdfunding is the only passive investment option where you can sign up today and grow your capital with our average 18.87% investor return with no stress. You don’t have to be an experienced investor, because Holdfolio handles the hard work for you. Most real estate investments demand site inspections, negotiations, a stack of paperwork, as well as spare time and money for property management allocations. Holdfolio’s investor portal is offered exclusively online, so it’s simple and easy to fast-track a strong portfolio. The three steps to becoming an investor - create an online account, select an investment, and deposit money - are all it takes to produce compounding positive outcomes for your finances. Manage your portfolio online from the comfort of your home, and we'll manage the properties so you have more time for the things you enjoy. For those with plenty of time available, perhaps you'll prefer a more active approach.   House Hacking   House hacking is the term used for individuals that sublet a spare room in their home and make money off the rental income. Whether you already own a property or live in a house with an extra guest room, this method will demonstrate how to get into real estate with almost no money. Begin by researching your lease agreement and local laws to ensure you're legally equipped to rent a room to a third party. District housing authorities or local government websites provide this information. Check housing codes to ensure the room is safety compliant. For example, some housing codes require large windows in liveable rooms for emergency escape purposes. Consider whether you want to rent the room furnished. Short-term rental tenants usually expect furnishings, and in many cases, people pay more for large furnished rooms. You can charge more for an independent living space, with private access, kitchenette, and bathroom. Get Creative A Long-term lease provides a more steady and stable income stream, but it's not your only option. If you're located in a metropolitan area or tourist hotspot, take advantage of short-term visitors by renting your spare room through accommodation providers like Air B'n'B. Buying a house with extra rooms to rent out is another way to consider this approach. If you feel hesitant about sharing a living space with a tenant, rent the room for storage. Be sure to do your due diligence by ensuring your renters are trustworthy, and clarifying access expectations. House Hacking requires energy and time to organize and manage, but the rental yield will be worth it.   A Sandwich Lease Option Many people wonder how you can invest in real estate with very little money in the bank. Those people haven't heard of the sandwich lease option. This approach is advantageous for those who want a foothold in the real estate market without going through financial institutions and without hefty down payments. A sandwich lease is a subletting strategy that facilitates entry-level investors with limited capital and experience. Similar to renting rooms, this option positions a real estate investor between the property owner and the tenant-buyer. Here's how it works: First, conduct an online search to find a rent-to-own home. When you discover your desired property, you enter a contract with the property owner. In this example, they are the lessor and you are the lessee. Next, find somebody prepared to enter a parallel agreement with you to move into the home. The catch is that your asking price is greater than what you've agreed to pay in your lease with the property owner. In layman's terms, you agree to lease a property from the owner, but instead of living in it, you find someone else to move into the property who is prepared to pay you more. The dividends you earn from rental income are determined by calculating the difference between what you have agreed to pay the property owner, and what your tenant has agreed to pay you. You can also capitalize on the sale of the property itself. It's worth disclosing your intentions to the homeowner. Some rent-to-own contracts prohibit sublease agreements, so be upfront and make sure the homeowner is on board. Use your savvy communication and negotiation skills to take advantage of this technique. Similar to renting a room, sandwich lease ventures call for time to manage. They can be risky and labor-intensive because they involve business with two parties rather than one. However, as a low-capital investor, this is one of the most efficient ways to leverage your money.   Property Flipping ' Perhaps you already know how to invest in real estate with little money and have achieved a basic level of financial leverage or lender support. House flipping could be a well-calculated move. This strategy is more contingent than the alternatives and consumes a significant amount of time and effort. But you stand to gain a desirable return on investment if you play your cards right. Property flips involve buying for renovation, then re-entering the market to sell for profit. An investment property sold for rehab is usually below market value because it requires a laborious undertaking before it is inhabitable. Not only does the buyer fund the purchase of the property, but also the repairs. These can be achieved more cost-effectively if you have the time and skills to commit to the work, though contractors are available for flexible budgets. Before buying, scan the paperwork regarding the construction and condition of the property with a fine-tooth comb and crunch the numbers thoroughly. Hire a professional inspector and ensure you account for these expenses in your breakdown. Certain urban areas have local tax and legal obligations that may affect house flipping projects. Related expenses include: purchase costs holding costs renovation costs selling costs Get quotes so that you can set realistic expectations about the scope and financial commitments of the work. Researching this stage will be time-consuming, but it's a critical step. By being aware of the profit available from house flipping - including the purchase price and expenses - you're better equipped to land a smart deal. How Does This Gain Capital? The money-making potential of house flipping is driven by how much you pay for the property. Strong negotiation skills will be necessary to get a good deal. The second way this makes you money depends on how cost-effective renovations and repairs are. For example, by investing your own time and skills to rehab the interior and landscape you can save the cost of hiring contractors. You may need to hire professionals for tasks like plumbing and electrical, roof repairs, and structural or health and safety compliance issues. For tight budgets, reach out to your network and hustle. Aim to make the process as quick as you realistically can, so you sell in the same market that you bought the property.   Seller Financing Not every investor can meet the strict lending requirements of mortgages at the beginning of their real estate journey. Seller financing is a practice where property owners also serve as the mortgage lender, eliminating the need for banks, credit unions, or other financing institutions to finance the sale. Instead, the homeowner owns and handles the debt themselves. This generally happens under one of the following two conditions: There is no mortgage on the property The seller's financing institution has agreed to extend the mortgage The seller extends credit to the buyer to finance the property purchase, minus any down payment. Both parties sign a promissory note where the buyer agrees to pay in installments over a set period. With seller financing, you can land great flexibility in agreement terms, financing options, and interest rates, which is ideal for low-income, or first-time buyers. Additionally, this strategy reduces closing costs which can offset standard credit checks and legal expenses. Some risks include fewer regulations to protect home buyers, and the possibility of early foreclosure because the seller has defaulted on their payments to senior financiers. Sellers can use this arrangement as an opportunity to sell a home "as is," which could lead to unexpected maintenance expenses later on. Both buyers and sellers are advised to do due diligence by conducting thorough research. Consider employing an experienced real estate lawyer to draw up the contract so that the agreement is watertight.   Summary You don't need a lot of capital or industry experience to get involved in real estate investment. With a little savvy, these opportunities will help get a foothold in active investment to begin your real estate journey. House hacking and sandwich leases are an easy way to start with minimal capital and require an ongoing property management commitment. Through preparation and smark risk management decision-making, house flipping and seller financing can improve your finances significantly. The drawback of these strategies is that they consume greater amounts of time and stamina than crowdfunding, and at least a baseline of financial leverage. Holdfolio crowdfunding is the only approach that saves you hassle while you receive a passive income, and watch your investment grow. Register with Holdfolio crowdfunding to start your investment journey (with or without little money) today.
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Oct 19, 2021

25 Top Real Estate Investor Websites You Need To Visit to Get The Best Money Making Advice

Real estate is one of the most powerful wealth creation tools out there. There are, of course, multiple platforms that can make the research and investing process easier.  Whether you are looking for information, real estate markets, real estate investment projects, properties to buy, or something else — you can find it online.  You just need to know where to look. So we've prepared this list of real estate investor websites to help educate realtors. In this article, you will find 25 different websites that are useful for information, house flipping, services, tools, commercial investing, and more. Anything you want to know about real estate investments, we've got you covered. Holdfolio Holdfolio’s crowdfunding platform offers passive real estate investment opportunities to both accredited and non-accredited investors. Holdfolio deals are equity-based, meaning they provide the upside potential as well as cash flow. One of the advantages of investing with Holdfolio is that we invest alongside our investors. Holdfolio invests around 4-10% in each deal. This means the investors are not being pushed to take risks that could potentially end up losing money. Our investors have high returns because not many crowdfunding platforms invest with their investors.  Holdfolio aims for double-digit returns, at least 10% every year. Our investors have an average investment return of 18.87%.   You can learn about the possible profits to be made on any property before investing in it. Investors find it appealing that Holdfolio’s investment requirements are as low as $20,000, and it can be done via a self-directed IRA. This is a type of retirement account that allows you to invest directly with Holdfolio. Our minimum investment rates are incredibly low compared to other companies with most companies requiring a minimum investment of $50,000. SyndicationPro SyndicationPro was created by real estate sponsors to provide transparency and increased access to syndicators and to provide investors with a high-end experience. The team behind this organization keeps SyndicationPro on track, making it the best real estate syndication platform on the market. Syndicators and fund managers who work in commercial real estate will find SydicationPro the most useful. While the software is advanced, it is user friendly for everyone, from first-time dealmakers to those in charge of multibillion-dollar portfolios. It's also perfect for co-sponsors. SyndicationPro offers a streamlined fundraising platform with a cutting-edge investment site, digital PPMs, the option to eSign agreements, and the capacity to add cosponsors to a deal. Transparency is crucial when it comes to managing your assets, thus SyndicationPro allows investors to receive full reports and updates, as well as delegate access to others. It also allows you to calculate and notify your investors about payouts. There is a lot of Real Estate Syndication Software on the market that can cost a lot of money. To provide better accessibility to real estate agents, SyndicationPro offers game-changing competitive prices. SyndicationPro pricing starts at $95.00 per month. BiggerPockets BiggerPockets is an online platform committed to assisting investors at all levels of expertise, whether they are seasoned commercial real estate owners or just aspiring investors looking to learn how to flip houses for extra money.  For many people, the best way to get started in real estate investing is to listen to a real estate podcast, read a real estate blog, or participate in an online forum, all of which are available through BiggerPockets. This fantastic online resource can help you take the first steps toward owning a rental property or flipping a house.  Millions of real estate professionals check the site first thing in the morning for the newest information on real estate investing fundamentals, landlords and rental properties, house flipping, mortgages, and innovative financing, and to sign up for special webinars. If you want to keep up with the real estate world, BiggerPockets should be one of your go-to websites! Rental Kharma Rental Kharma is a platform that uses your rental bill to raise your credit score. Yes, you've read that correctly. The company takes your biggest bill and uses it to your advantage. Rental Kharma simply adds your rental payment history at your present residence to your TransUnion and Equifax credit reports.  That's all there is to it. You do not need to change your payment method. The company has a straightforward technique that is convenient for both the renter and the landlord. The company promises to increase the clients' average score by 40 points with visible results in 3-10 days. Rental Kharma also provides a 90-day refund policy, in case a client feels that the company's services were not a good fit, the company promises 100% money back. NeighborhoodScout When it comes to real estate investments we all know that location is important. You simply need to study the neighborhood before you invest but worry not, there's a platform for that too!  NeighborhoodScout is a website and online database of neighborhood analytics that uses a patented methodology to assist investors in creating neighborhood profiles and identifying the greatest investment opportunities. The website can significantly reduce the amount of time and effort spent searching for real estate by focusing on the places that meet the precise criteria of individual rental property investors. ActiveRain Consider Active Rain to be the Facebook of the real estate investing world. The site is the world's largest repository of real estate knowledge, with over 300,000 active members and over four million blog articles.  Those figures are crucial because in real estate investing, who you know is just as essential as what you know. Agents and brokers, appraisers and inspectors, lenders, and investors are among the members of Active Rain's community, which is the largest and most active professional social network in the real estate business. So with the help of ActiveRain investors can connect with like-minded individuals and expand their network.  NNN Deal Finder A triple net lease (also known as a NNN lease) is a lease agreement in which the tenant or lessee agrees to cover all of the property's expenses, such as real estate taxes, building insurance, and upkeep. Because they provide low-risk, consistent income, triple net leased properties have become attractive investment vehicles. NNN Deal Finder is the leading buyer's broker, assisting informed investors in locating reliable, long-term NNN Lease investments from recognized businesses with lower risk and more reward. Hundreds of NNN properties for sale are analyzed every day by their staff and presented to investors on a first-come, first-served basis. Investors interested in other types of NNN properties, such as CVS drug stores for sale, Walgreens properties for sale, and 7-Eleven properties for sale, can collaborate with the company to uncover more precise characteristics. If you want NNN deals, they've got them all. Zillow Many investors consider obtaining a real estate license solely to have access to the MLS. Instead, by using Zillow, they can save hundreds of dollars per year in fees that could be better spent on an investment property.  Many local MLS services, in fact, have data syndication agreements with Zillow. One of the reasons why the Zillow applications and websites had more than seven billion visits last year is because of this. On Zillow, real estate investors may access free investment tools and market data, search for attractive buys, and even advertise their own rentals. HousingWire HousingWire is the most prominent source of news and information for the mortgage and housing markets in the United States, with an audience that includes lending, servicing, investments, and real estate market players, as well as financial industry professionals. The company acts as a network for mortgage and real estate professionals to engage and connect, with over 10 million unique visits every year.  Rental property investors can stay on top of the housing market by reading news, magazine issues, blogs, and watching films, listening to podcasts and webinars about trending real estate news, existing home sales and the economy, mortgage rates and credit trends, and how fintech can assist increase ROIs. Rentometer Investors can compare their goal rent to comparable rentals in the neighborhood on this site by entering only three pieces of information: the property address, the number of bedrooms, and the rent predictions. To establish real world, fair market rental values, Rentometer uses a combination of syndicated rental data, proprietary databases, and an aggregate of user-generated information. It's an important real estate investing tool to utilize because underestimating the rent can result in a high vacancy rate and negative cash flow.  Rentometer provides real estate brokers and landlords with rental comparisons, as well as portfolio batch analysis for aggregate reporting on numerous flats and properties. The company can also assist investors in attracting potential tenants: using the free rental listings, units that are currently available for rent will appear on the Rentometer widget and map with a distinct marking. This Old House This Old House is a must-visit site for any do-it-yourself real estate investor.  The majority of first-time property investors lack the financial resources to engage professionals to renovate the homes they are flipping. Instead, they must rely on their own knowledge, which they can obtain through This Old House. Every room of the house is covered with articles, instructions, and videos grouped by the site. It also includes woodworking, installing solar panels or alternative energy sources, HVAC, and more.  Anyone interested in learning more can look up local television listings or subscribe to the podcast or magazine. REtipster REtipster is the place to go for investor hacks and game-changing technologies that are transforming the business of investing in real estate for real estate investors that use a passive investment strategy.  REtipster is a website dedicated to real estate investors, with proven tools such as articles, podcasts, videos, and more. Recent articles have covered topics such as real estate syndication, how to invest with $5,000, and where to discover the finest rental property deals. Veterans United Home Loans Veterans United Home Loans is a platform that allows veterans, service members, and certain military spouses to get a loan with the U.S. Department of Veterans Affairs (VA) with no money down. Private lenders, such as mortgage firms or banks, make VA loans. Although VA loans are specialized loans, they aren't any more complicated or time-consuming than other types of house loans. This VA loan guide is designed to give you the information you need to complete your VA home purchase or refinance and make the most of your hard-earned benefit. Real Estate Masters Summit We all know that one person whose life has been completely transformed as a result of real estate investing. Maybe they were living paycheck to paycheck before but then they were able to grow their wealth enormously. If you wanna be one of those people you will find the Real Estate Masters Summit highly beneficial.  The Real Estate Masters Summit is an online seminar platform that aims to educate realtors with a huge array of knowledge and experience. It provides realtors with direct access to leaders in real estate to take the guesswork out of becoming successful in the real estate industry. You can learn from the mistakes of seasoned real estate professionals while listening to their seminars online and become a real estate expert yourself! FortuneBuilders FortuneBuilders is one of the world's leading real estate investing education websites. It provides a platform to connect with their community, learn about fresh real estate articles and news, watch FBTV episodes, and view successful student-submitted real estate deals and successes.  FortuneBuilders have made it their mission to share their passion for investment and business with their guests, as real estate is one of the most rewarding endeavors. Houzz Houzz is an online community and website dedicated to architecture, interior design and decoration, landscape design, and home renovation in the United States. Home professionals who are designing properties, flipping houses, and doing renovations can use the Houzz platform to locate and hire qualified design and construction experts. The platform allows people to connect with like-minded professionals by joining a global community of millions of homeowners, renovation specialists and interior designers.  If you're a home professional, Houzz Pro can be another way to help you stand out, get clients, and manage your projects effectively and financially. REIPro REIPro is a real estate program for small and medium-sized businesses and large corporations. Real estate investors can use REIPro to look for a variety of properties, including unoccupied and bank-owned lots. You can also get the selling prices of such listings from this software. You can find assets from numerous locations by using the quick search option. It allows you to search for both close and faraway properties. REIPro also functions as a marketing platform, allowing you to send messages to prospective clients and investors.  Self Storage Investing When it comes to investing in a niche market, self-storage is one of the old-timers. Self-storage has long been regarded as one of the most rewarding investment niches. Self Storage Investing allows people to become financially independent without the hassles of tenants, toilets, or trash! After years of investing in self-storage and amassing a portfolio of over 2 million square feet of storage space, Self Storage Investing has become a well-known name. The website offers passive investment alternatives along with educational bits on self-storage investments. The company has also developed many products, events, and one-on-one coaching programs to show investors how to profit from self-storage. Anyone can easily choose from their products online and get started in Self Storage Investing!  Short Term Shop The Short Term Shop (EXP Realty) is a full-service short-term and vacation rental sales and acquisition organization that serves the Smoky Mountains, Emerald Coast, Forgotten Coast, Orlando, Gulf Coast, and Blue Ridge, GA areas. The company focuses on educating and helping investors to make long-term wealth by investing in short-term real estate investments. The company is specialized in finding short term rental investments for their clients to get involved with and help them every step of the way. They provide a cash flow calculator service for those who are interested in short term rentals but are unsure of their potential cash flow. They even have an STS University that teaches individuals all the necessary skills to make money with short term rentals.  Carrot Carrot is a lead generator hub that helps real estate investors and realtors get more leads through their websites. Carrot’s team of professionals provide their clients with the leads they need to grow their businesses by utilizing SEO ranking, software, and training.  If you want to have a real estate investor or agent website that gets search engine rankings and generates free seller and buyer leads and to be able to take full control of your site from start to finish so your brand is unique to your target market and does not feel like another template website, you can use Carrot’s services to generate leads the right way. Crime and Place Crime and Place is a platform for crime rates and mapping. Yes, it shows the crime rates, the types of crimes, and when they were committed in the area. It can be very beneficial in terms of knowing the area before you invest. The app has three main features: The Crime Compass is a unique color-coded perspective that allows you to rapidly see your surroundings as you travel. It refreshes dynamically utilizing the device's GPS and internal compass technology. The Map Overlay visualizes crime statistics as a fully interactive heat map, complete with GPS tracking to show your current position. The map overlay and a handy graph display 1 to 5-year crime estimates, as well as any other specified location, such as a dropped pin or a specific search. ClimateCheck Millions of properties in the United States are currently at risk, and many more will be in the near future as a result of altered weather patterns and worldwide environmental circumstances.  Knowing the facts can assist you in making better decisions about how to manage, sell, and purchase your house. The ClimateCheck property report function can help you analyze the individual and collective effects of climate change in general. Understanding each risk—heat, fire, storm, drought, and flood—has become an important component of homeownership. Through its proprietary risk assessment and report, ClimateCheck empowers property purchasers, owners, and brokers by exposing and quantifying the dangers associated with the climate. LandWatch LandWatch is one of the leading online resources for rural properties and lands for sale, including hunting land, forests, farms, ranches, development sites, and homesites for vacation, enjoyment, or investment. The sellers advertise a piece of land for purchasers to find – and you can also find foreign land for sale here. The best part is that searching for land on their website is free; all you have to do is register to access its features. If you're looking for a new property as a land developer or agency, LandWatch provides a dedicated search tool just for you. You can narrow down your search by property type. Multi-family zones and commercial properties, as well as land size. You may also filter your results based on price, size, and availability. Auction.com Think eBay but for properties. This property auction platform has an unrivalled collection of over 16,000 properties currently for sale. Each is kept inside a searchable database where users can search by city, foreclosure status and ownership status, just to name a few parameters. Auction.com not only allows registered users to bid on a property of their choosing, but they also offer detailed analysis of the property’s tax history, the surrounding neighborhood, and ental estimates—almost anything a prospective buyer would need to know before making an informed buying decision. The platform boasts $52 billion in sales to date. There are currently over 16,000 properties available for sale and 6.3 million registered buyers on Auction.com. Call Porter Call Porter is the world's only live answering service and lead management system designed specifically for real estate investors who want to buy and sell more properties without having to work harder or spend more time on the phone. The company offers to set you up with a custom phone number which you can use in your marketing material. Every time someone calls that number, the company’s team of professionals who are expertly trained in real estate will answer the calls for you and build relationships with your potential customers. Call Porter utilizes its services so you won’t miss any phone calls or any deals.  Holdfolio Stands Above All In summary, real estate investments require a long process of studying and researching but you don’t have to be the one to do it! You can join us at Holdfolio and let our team of professionals take care of everything while you get to handpick the property you want to invest in then sit back and enjoy your passive income!
Property

Oct 14, 2021

How To Buy A Multifamily Property: An Investor’s Guide To Real Estate Investing in Apartment Buildings

Buying multifamily properties offers investors the opportunity to recoup their investment much faster by generating more rental income from having multiple tenants in a building. You can even decide to stay in one unit and rent out the other five or more units to enjoy a steady cash flow and monthly income.  If you’re interested in learning more about multifamily investing you’re in the right place! We've composed this investor's guide on how to buy a multifamily property for new and experienced investors. Let's dive in! A Quick Word on Multifamily Crowdfunding Suppose you don't have money to buy a multifamily property directly. One investment strategy that can enable you to enjoy the benefits that come with buying a multifamily home, like earning a steady income, is crowdfunding from Holdfolio. The World Bank has estimated that global crowdfunding for real estate will reach a whopping $93 billion by 2025. Crowdfunding with Holdfolio enables small investors to pool their money as a group and invest in a large real estate investment vehicle that would have been beyond their reach as an individual investor due to capital constraints.  Holdfolio will source the investment opportunity, place the money, and manage the investment. This real estate investing option is perfect for investors that are seeking alternative investments to diversify their portfolio. Crowdfunding with Holdfolio presents an opportunity to mezzanine debt, or first-lien debt, as well as provide joint venture equity, and preferred equity for a regular or newbie investor with $20,000.  Holdfolio provides all the benefits of crowdfunding real estate properties like making bids on multi-family homes, no tenant management, and high returns without the negatives of buying multifamily properties alone or starting your own fund (options which we will explore more in detail throughout this article). Learn more about crowdfunding with Holdfolio here Searching for Viable Real Estate The first step in privately acquiring your first piece of multifamily real estate is finding viable properties which will recoup your investment whilst also appreciating in value over time. The following are ways to find viable real estate investment properties. Off-Market Deals Sometimes, multi-family home sellers might not want to list the building for various reasons. The problem lies with discovering where to find those properties. That's why you need to network and connect with people who deal in multifamily properties.  You can meet those people when you attend real estate workshops, conferences, meetups, and real estate masters’ summits. The National Association of Realtors (NAR) often organizes meetings about a range of real estate topics. Work With a Real Estate Agent It's often hard finding a great multifamily investment deal in Class B and C real estate categories in large metropolitan areas, especially as a new investor.  The reason is that these multifamily property deals mostly pass through referrals and networking and don't often get listed publicly. Investors with great relationships with a real estate agent are often lucky enough to hear about these deals.  Real estate brokers usually list multifamily properties that are overpriced and competitive in MLS sites so interested persons can see them.  Suppose you contacted a broker to help you find a multifamily property, and they start sending you deals, ensure you follow them up promptly and respond to their calls and emails. Contact Owners Directly One way to contact a seller directly is by driving for dollars which entails going around in a neighborhood where you intend to buy a multifamily property to see if you can find an unlisted multifamily property you can buy directly from the owner. These kinds of deals are usually great and will help you save money. Valuing The Property & Negotiating on Price A property valuation is vital when buying a commercial real estate investment, whether single-family or multifamily properties.  The valuation is essential for several reasons, including investment analysis, taxation, financing, property insurance, and sales listing.  However, most people opt for a real estate valuation to determine the asking price when purchasing a multifamily property.  The following are some of the approaches to property evaluations you can use before making a multifamily real estate investment. Income Approach This is the most popular commercial real estate investment valuation technique. Here, the appraiser employs regular investing calculations, like cap rate and NOI (Net Operating Income), to determine the property's potential income generation in the current market.  The income approach formula is: NOI / cap rate = property value. However, while evaluating the property, the NOI on the pro forma should be accurate. An inaccurate NOI will lead to an incorrect valuation. Investors will also need to find comparable sales cap rates to enable them to come up with the valuation's cap rate. It is hard to determine an ideal cap rate if there are limited comparable sales available and this can throw off the valuation's accuracy. Cost Approach Although not a popular approach, the cost method is best for new buildings. The cost method estimates a property's value by checking the cost to construct the building from scratch. This approach considers the land cost, labor, and materials to determine the amount it'll take to build the same property in the current market. That way, you won't pay more than it takes to construct a new dwelling. Appraisers often use the following formula to evaluate multifamily properties. New building cost + land cost - accumulated depreciation = property value Gross Rent Multiplier Approach Another common real estate investment valuation method individual investors use is the gross rent multiplier. This method isn't the best for commercial valuations. It works by looking at comparables to enable the investor to find the property location's average gross rent multiplier. However, make sure you ensure the values are accurate to get the correct property valuation. You also need to check the building's pro forma to determine the property's average gross rental income. Then use this formula to evaluate the property: Annual income x gross rent multiplier = property valuation Sales Comparison Approach Investors that prefer buying single-family homes and other residential real estate prefer the sales comparison approach. This valuation method uses comparable properties' sale prices to determine the property's value. A single-family home appraiser has lots of comparables to select from compared to commercial appraisers. A commercial appraiser might need to look outside the location's current market to find a comparable property. However, the valuation might be less reliable. Timing Offer Submission As an investor seeking to learn how to buy a multifamily property, quickly submitting an offer might be the difference between losing the deal or securing it.  Suppose you wish to inspect different homes, your broker might contact the listing real estate agents for properties on your purchase shortlist to get an idea of how many offers they have.  The following is the process for submitting formal offers for your property of choice. House Offer Letter Consider writing a persuasive house offer letter - a personal, short letter that shows your appreciation of the home and willingness to buy it. Don't forget that a house offer letter isn't suggested for every seller so you'll need to decide if a personal appeal is suitable.  Starting Price When evaluating a written offer, the seller will first look at the offered purchase price before anything else. Thus, you'll need to state your starting price accurately to prevent the seller from discarding your offer immediately.  However, you'll need to consider some factors before setting a competitive starting price such as does the property require many repairs and renovations? Is the building adequately valued compared to similar ones in the local market? Then consider what you can easily afford to pay for it without jeopardizing your financial security.  More so, it'd be best to check that the property is close to major schools, local entertainment hubs, companies, and shopping centers.  We advise that you do your due diligence before buying a multifamily property and work with a realtor with excellent knowledge of the local market. Contingency Period After submitting your offer, the property seller will either counter, decline, or accept your offer. If they decline, the seller might come with an alternative proposal, but if accepted, you'll be invited to sign the purchase agreement.  This agreement explains the framework in the initial written offer, pushing both parties to the contingency period. As a legally binding document, the purchase agreement must include the agreed-upon price, earnest money deposit (escrow money), breakdown of closing costs, and the property's full legal address.  During this contingency period, both parties will conduct home inspections and appraisals, set contingencies on the property sale, inform each other of any disclosures, and continue further negotiations. If the negotiation fails, the whole process will be repeated. Most investors don't want to go through all this stress of buying a multi-family property due to the time and money involved and prefer buying multi-family homes by crowdfunding with Holdfolio. Through crowdfunding, investors are able to combine their capital and get access to higher-value deals with greater returns that they wouldn’t otherwise be eligible for. Heard enough and ready to invest? Get started with Holdfolio now. Multifamily Real Estate Financing Options (Mortgages & Loans) Besides asking how to buy a multifamily property, you need to also enquire about its financing. As a commercial real estate investor, you can access many financing options to start your investment journey. Conventional Mortgages This type of real estate financing is ideal for those who invest in single-family properties and residential buildings. Conventional mortgages are also perfect for house hackers and multifamily investors. Freddie Mac and Fannie Mae have rules to qualify for these loans. Once you meet stipulated conditions, you're on your way to getting the mortgage from Fannie Mae and Freddie Mac. The main requirements of conventional multifamily financing are a 25 percent down payment for fourplexes (four units) and buildings with more units.  Fannie Mae and Freddie Mac set their minimum multifamily lending credit score at 620. At the same time, the debt to income ratio is 50 percent. Hard Money Loan Also called short-term bridge mortgages and considered loans of last resort, hard money loans are issued mainly by companies or individuals, rather than banks, because of the loan's potentially risky nature. A hard money lender focuses on the collateral property's value rather than the borrower's creditworthiness. This mortgage is suitable for short-term financing, turnaround situations, and borrowers with substantial equity but poor credit.   Keep in mind that the interest rates for hard money loans tend to be higher than other types. In 2020, the average hard money mortgage interest rate was 11.25 percent, with rates from 7.5 to 15 percent across the country. HUD Multifamily Financing This loan type is insured by the US government and always comes with favorable terms. However, they're exclusively designed for multifamily investors and developers.  To qualify for a HUD mortgage when investing in multi-family properties, you'll need to go through an annual operating audit, show that you've got a strong financial standing, and demonstrate your experience in multifamily investing. Lastly, the minimum refinancing or purchasing loan amount is $1 million. FHA Multifamily Loan FHA-approved mortgage lenders issue federal housing administration FHA loans. This mortgage is primarily for low-income Americans. However, you can qualify for this loan for properties with two to four units.  Nonetheless, these mortgages often require a small down payment and have lower closing costs. FHA multifamily mortgage loan requirements include 3.5 percent down, and you must live in one of the units for at least one year.  Furthermore, before buying a multifamily property of two units, you must have a 580 credit score and at least 620 credit score for a multifamily house of four units. The interest rates are also low. Investing Your 401K Most people think it isn't easy to invest with their 401k, but that's not true.  You can take out a loan against your 401k if you decide to invest in real estate with it. Most plans allow you to take a loan out of your 401k. However, make sure you ask your plan administrator before taking that step.  You may be allowed to borrow half of your 401k, up to $50,000. Nevertheless, it'll have to be structured as a non-recourse loan, a loan type secured by collateral, which will be the rental property under purchase.  Another option is to move the funds to your self-directed IRA from your 401k before buying multifamily real estate and earning more income. However, it’s best to check with your administrator to be sure you can transfer the funds into a self-directed IRA and what the necessary paperwork involved is, if possible.  How To Buy A Multifamily Property With No Money Down Besides more information on how to buy a multifamily property for sale, most new investors worry about finance. If you've been wondering how to buy a multifamily property with no money down, we have the answer, and it includes the following options: Equity Shares We recommend finding an equity share investor once you find a great multifamily investment deal. An equity share investor is a real estate investor that'll agree to provide funds for the real estate property purchase in exchange for owning a percentage of the building's equity. For instance, if the equity share investor provides $150,000 for the property purchase, you may agree to give them 30 to 40 percent of the multifamily real estate investment equity.  The equity share investor will be entitled to a specified monthly cash flow. Furthermore, the financier will also receive the same percentage of the profit when you sell the investment property.  Real Estate Syndication or Raise Private Money Another way to invest in multifamily real estate is to join a real estate syndication or raise private money. Real estate syndication entails real estate investors coming together to pool funds for real estate investment financing to earn more income.  You can enter into a partnership by teaming up with another investor with more financial resources than you to buy multifamily property. On the other hand, you can also crowdfund with Holdfolio. That way, you gain an ROI from the funds invested.  Real estate partners can also share the rental property management responsibility depending on the agreement between them. In contrast, Holdfolio investors aren't tasked with this responsibility.  Hard Money Lenders Although most real estate investors get financing from hard money lenders as a last resort, hard money lenders don't focus on your credit history, but rather the multifamily property's earning potential.  More so, hard money lenders don't usually require a down payment. However, bear in mind that the interest rates are high, and it comes with a shorter amortization period.  Therefore, while you might consider it a viable option for buying a multifamily home, keep in mind that the cons far outweigh the pros. Thus, we recommend joining a crowdfunding company like Holdfolio if you want to start your multifamily investing journey but don’t have sufficient funds.   Registering Your Property After The Sale It's not enough to be worried only about how to buy a multifamily property, you also need to consider the entire process, from submitting an offer, getting finance from a lender to registering your property after the sale.  Besides the deed and title, you'll have to pay the property registration fee at your property location. The United States doesn't have a unified property registration policy, so the cost for registering properties differs in individual states.  For instance, if you're registering your property in Florida, you'll be charged ten percent of the property cost payable within five to ten days of the application.  In California, it's three percent to be paid in three days after applying. While if you're registering your property in New York, it's 10 to 20 percent of the total property cost to be paid within five to 10 days of application.  However, you can save yourself all this effort and money by investing through a real estate crowdfunding platform like Holdfolio. Conclusion Investing in a multifamily apartment complex of four units or five or more units for the first time is an incredibly exciting venture, however, it also involves lots of work and a foolproof investment strategy.  Regardless of the preparation and research, you put into it when starting out, things are likely to go awry. However, one guaranteed way to start multifamily real estate investing with little or no money and enjoy a steady cash flow is through crowdfunding.  Do you want to invest in crowdfunded commercial real estate? Consider signing up with the leading crowdfunding real estate investing platform Holdfolio. Holdfolio allows an investor with as little as $20,000 to own a multifamily property and earn monthly returns from the investment.  Visit the website today to sign up, choose a property to invest in, and the investment amount and viola! You're on your way to earning a steady, monthly income.
Real estate syndicate participants

Sep 30, 2021

Real Estate Syndication: What It Is And How To Make Deals For Lasting Wealth

Real estate syndication has been exclusive to only the wealthiest investors for many years, but with recent changes, they have now become more mainstream. Regardless of your background and experience, joining a real estate syndication deal can help you grow your wealth enormously while diversifying your portfolio. Read on to learn more about real estate syndication, its benefits and how you can get started today! What Is Real Estate Syndication? Simply put, real estate syndication is created when a group of passive investors pool their money to buy income-producing real estate.  There is a lead investor, who identifies and actively manages the property or portfolio of properties that make up the syndicate’s portfolio.  Then, there’s the passive investor. Their role here is more narrow: invest money in a real estate venture that has been solicited for a specific return. The syndicate is principally a joint investment vehicle for investors to pool their funds in order to make a high-value investment. They are a special investment with legal regulations that closely define the financial relationship between the sponsoring investor and the participating parties.  The SEC will require you to organize a syndicate if you are putting together a deal with passive investors. The management is known as a syndicator, and he or she has a fiduciary responsibility to investors to define the returns and risks, as well as to protect their investment.  What is a Syndicator? General partners (GPs), often known as real estate syndicators, are in charge of organizing and running the real estate syndication. The general partner(s)' primary responsibilities are:  Underwriting the contract. Conducting a comprehensive investigation of the property. Putting together a financial plan. Dealing with the vendor. Attracting investment. Managing the asset. Taking care of investor relations. Creating a company strategy. Obtaining funding for the deal Collaborating with the property management company. A real estate syndicator is in charge of finding the property, negotiating the sale, and overseeing the asset after the deal has been closed. The purpose of the syndicator in real estate syndication is to carry out the bu Real Estate Syndication Vs Crowdfunding The distinction between real estate syndication and crowdfunding is often misunderstood.  The names are similar and both refer to investment in institutional real estate deals, but they are not interchangeable. As the name suggests, syndication in real estate refers to a financial framework between the investors and the project sponsor. Crowdfunding, on the other hand, is another more informal way for sponsors to solicit and collect funding from investors.  You can think of crowdfunding as an umbrella term: every real estate syndication project falls under the crowdfunding category but not every crowdfunding project is syndicated.  Getting involved in real estate syndication via Holdfolio will allow you to make thousands of dollars in profit annually with an investment of as little as $20,000!  You can access commercial real estate investment deals that are exclusive and enjoy the benefits of tax deductions of up to 80%! Our investors make high returns on their investment with an average of 19.50% per deal. Learn more about syndicating multifamily real estate with Holdfolio. Let your money provide the lifestyle you deserve. Not all crowdfunding real estate deals are through syndicates. The latter are more narrowly defined, special investment vehicles with specific legal requirements that the lead investor is beholden to.   Expected Return From Syndicates  For real estate investors, there are two main ways to get paid are through what are known as preferred returns and through profit sharing. Preferred Return The preferred return is a percentage of the total money invested paid to syndicate investors, either immediately from continuous cash flow or stockpiled until the project has enough cash to make the payment.  It works like bank interest payments, except there is no assurance it will be paid because the project must produce money in order to have enough funds to make the payment. For example, if you want to join a real estate syndication project that includes a property of $100,000 and you invest 10% you will own 10% of that property and the profit made from the property.  Let’s say the property is being sold for $200,000, after reducing all the expenses such as realtor fees, closing costs, etcetera the net profit is $180,000. Since you invested 10%, you will be getting $18,000 from that $180,000. Removing the $10,000 you’ve invested, you are making $8,000 profit.  Profit Sharing  Profits and appreciation are also given to investors for their participation in the transaction. The share of profits for real estate syndication investors is paid in proportion to the amount invested. For example, if you want to invest $100,000 in a deal and receive a 10% preferred return, you may potentially make $10,000 per year if the property generates sufficient revenue. Once each investor has received their preferred return, the balance is divided between the sponsor and the investors based on a predetermined profit structure. If there is $1 million left over after the preferred returns are paid out, the investors will receive $800,000, while the sponsor or syndicator will receive $200,000. Real estate syndicates are legally required to maintain accurate and transparent accounting practices for their investors. They also customarily pay out around 90% of their earnings. Benefits of Real Estate Syndication Syndications, as any real estate investment, offer a variety of advantages that few other investments can match. Passive Income A real estate syndication structure offers investors a passive income while the sponsor manages the property and takes care of the day-to-day operations of the project. Not all investors have the time or expertise to meaningfully evaluate a variety of properties to identify the finest investment opportunities. But there are real estate investment companies like Holdfolio that can do this for you. Holdfolio's team of professionals is in charge of things like proper research, identifying lucrative investment properties, appointing a property manager, and managing investor relations, among other things. The only thing the real estate investor has to do after providing funds is to sit back and enjoy their passive incomes. Anyone can grow their wealth by joining real estate syndication, you don't have to be an expert! Various Investment Opportunities Investors in estate syndicates receive access to various investment options that they might not have been able to access individually. Commercial properties, for example, are some of the best investment opportunities. However, property values in this asset type are often high. Investors can acquire access to this asset class through real estate syndications, which allow them to pool their funds. They can do so without putting too much of their own money in danger or subjecting themselves to credit risk. A lot of commercial real estate has been acquired through the use of a syndicated arrangement. Shared Risks Just as any investment, real estate can be risky. Investing in a real estate syndication, on the other hand, will allow you to share these risks with other real estate investors rather than carrying them alone. Diversification Diversification is an excellent method to prevent yourself from major financial loss and risks. A real estate syndication can buy more investment properties and diversify their portfolio more easily than an individual investor. As a result, even when funds are restricted, this method allows real estate investors to benefit from variety. Trustworthy Partnerships with Holdfolio Strong collaborations and expertise are the foundations of real estate investing success, and investors continue to pick us above the competition because of our knowledge and consistent asset development. Such strong partnerships will enable you to receive the highest level of aligned interest and build money. We aim to gain a significant return on your investment without guessing, regardless of market circumstances or the real estate cycle. Here at Holdfolio, our clients enjoy exclusive benefits such as: low minimum required investment  significant tax deductions that can result in a tax shield of 80% or more above-average returns for our investors, our track record is currently at 19.50% accessibility for both accredited and non-accredited investors   Besides all of these benefits, here's another exclusive perk; we invest alongside our clients. Yes, we are so confident that you will make high returns on the deal we provide that we put our own money into the project with you! While most investors fail to generate a predictable cash flow our investors, both accredited and non-accredited, enjoy their worry-free passive incomes.  You can learn about Holdfolio's real estate syndication process here! How To Syndicate Your First Real Estate Deal Syndicating your first real estate deal will require days - if not weeks - of research. The real estate syndication sector is strictly regulated, with many rules, regulations, and laws in place to preserve investors and the sector's overall stability.  Before taking a step into real estate syndication, you should know all these regulations and rules by heart otherwise you might end up in a disastrous situation.  Find the right property  Searching for the right property will take a lot of your time unless you join an investment company, like Holdfolio. Real estate syndications can include all types of properties such as multifamily, retail, self-storage, office space, and more. As the syndicator, you will be the one to seek profitable properties to fit your investment strategy whether it's to flip a property, add value, hold it for long-term cash flow, or to produce a return on investment in any way that you and your investors want. Thinking of forming a syndicate? As the lead investor, you’re responsible for doing the homework and collecting the investment needed to purchase high value real property. Find Investors Finding investors can be tricky especially if you are relatively new to real estate investing. Instead of finding investors on your own, you can join a real estate crowdfunding site like Holdfolio, where you can be introduced to like-minded investors who are looking for similar opportunities.  Decide on a payment structure Once you find your investors and decide on a property to invest in, you and your investors will have to decide how the payments will be made along with how the investors will be paid after the deal is done. Hire a property manager If you are not willing to make this your full-time occupation and manage your investment properties day-to-day then hiring a property manager is a must. This will save you so much time and you won’t have to worry about daily management chores and responsibilities.  Summary In summary, real estate syndication can be a highly beneficial deal for both the sponsor and the investors. But as we've mentioned earlier in this article, it can also be difficult and extremely time-consuming to do everything on your own.  That said, you don't have to be the one to do it all alone. Join Holdfolio today to save yourself from all that trouble. As a Holdfolio customer, all you need to do is sign up to our online platform and pick a property to invest in along with the investment amount. Then you can sit back and watch your wealth grow! Holdfolio connects you with like-minded investors who are looking for investment opportunities. Our team of professionals will take care of every single detail and you won't have to worry about anything! Start investing today!
Crowdfunding real estate

Sep 14, 2021

Everything You Need To Know About Real Estate Crowdfunding

Real estate crowdfunding is a popular way for multiple investors to pool capital together online and finance large property acquisitions. In this article we will explain everything you need to know about crowdfunding, starting from what it is explaining step by step, Holdfolio is here to help you. Read on to learn more about real estate crowdfunding and how you can start your journey to make a passive income! What Is Real Estate Crowdfunding? Real estate crowdfunding (also known as property crowdfunding) is a method of obtaining funds for real estate investments by acting with a group of investors who contribute an amount of their choice to purchase the holding. Simply described, it is a method of obtaining cash that allows real estate investors with limited capital to participate in large-scale projects. Real estate peer-to-peer lending, or fiduciary lending, is another term for real estate crowdfunding. How Does Real Estate Crowdfunding work? Real estate crowdfunding is one of the best passive income sources for investors, due to its high returns and little risk. Here at Holdfolio, we’ve put together a simple, fast way for people to access lucrative real estate deals. Let's get started. After signing up to our online portal you can look through active investments and handpick the property you want to invest in. All you need to do is invest as much as you want — while meeting the minimum requirement — then sit back and enjoy as the passive income you’ll receive grows your wealth! The crowdfunding opportunities found on Holdfolio’s online portal are found, vetted, and listed exclusively by Holdfolio. You can’t find the same high-calibre investments anywhere else. View more information on Crowdfunding with Holdfolio. Pros of Real Estate Crowdfunding There are multiple benefits to joining a real estate crowdfunding project. Accessible Investing Crowdfunding sites are now open to everyone, not just accredited investors, as of May 16, 2016. This means that regular people can invest in start-up companies that were previously available to just angel and venture capital investors. While the current Title III laws make it possible for non-accredited investors to participate in crowdfunded initiatives, it is not free for everyone. The Securities and Exchange Commission has limited the amount of money non-accredited investors can invest in a 12-month period. Your personal limit is determined by your net worth and annual income. With Holdfolio’s online investment platform, non-accredited investors can easily join real estate crowdfunding projects. Handpick Which Properties To Invest In Being able to handpick the properties you want to invest in is a great advantage. But it is not available in every investing company. With Holdfolio’s exclusive online portal, investors can browse through the multiple active real estate investment projects and choose freely whichever project they want to invest in. High Return On Investment With Little Risk When you invest in debt, you are purchasing a mortgage note backed by commercial real estate. As the loan is repaid, you will receive a portion of the interest. This sort of investment is regarded as less risky than stock, but it has a disadvantage in that returns are restricted by the interest rate on the note. The average annual investor return that Holdfolio has produced  is 19.5%.  Tax Benefits Long-term capital gains are taxed at a lower rate. Because real estate appreciates in value over time, it's usual for real estate investors to sell their properties for more than they purchased for them. Long-term capital gains are taxed at a lower rate than short-term capital gains if you keep the property for more than a year. Depreciation can be claimed. You can depreciate — or write off — the cost of real estate over time if you utilize it for business or rent it out, which lowers your tax payment. Depreciation periods for real estate have been established by the IRS: 27.5 years for residential assets and 39 years for commercial properties. For instance, if you spend $100,000 on a single-family rental property, you can deduct $3,363 in depreciation each year. Certain renovations, such as repairing the roof or installing a new HVAC system, can also be depreciated. Real estate investors can use a 1031 exchange. You can use a 1031 exchange to swap out an investment property for a like-kind property while postponing capital gains. While a 1031 exchange can save you thousands of dollars in taxes, it is a complex operation with many tax rules. As a result, you should always hire a professional to ensure everything is done correctly. Rental income is not a form of employment. Rental income is exempt from Social Security and Medicare taxes, unlike wages from a job or self-employment income (FICA). While this isn't a huge advantage over other sorts of investment income, it can save you a lot of money when compared to regular earned income. Let's imagine you find a part-time job that pays you $20,000 each year. Your wages would owe you $1,530 in FICA taxes. A rental property that brought in $20,000 in revenue per year, on the other hand, would not be subject to FICA or self-employment taxes. No day-to-day property management Crowdfunding is a passive income source that you are a shareholder of, along with other investors. If you join a crowdfunding project along with a crowdfunding company that also manages properties, like Holdfolio, you will be saved from the day-to-day management duties that a sole owner would suffer from. Portfolio diversification One of the most prominent advantages of real estate crowdfunding is that it allows you to diversify your portfolio. By diversifying your portfolio, you are essentially spreading the risk associated with a single investment across a number of different investments. Your investment portfolio will be split among other investments if one of your assets fails. To demonstrate the benefit, you might put $100,000 in investment A all at once, or you could invest the same amount in $20,000 increments among investments A, B, C, D, and E. You would lose $100,000 if you just invested in investment A and it failed completely. However, if you had spread that money among five investments and one of them failed, you would only have lost $20,000 in total. Cons of Real Estate Crowdfunding The biggest disadvantages of real estate crowdfunding usually stem from going at it alone. Without joining an established company, like Holdfolio, you will have to deal with every single detail alone and this is definitely a very time-consuming process. Finding Investors And Collecting Their Money Persuading like-minded investors to join your crowdfund is often a hard sell. Smart investors prefer joining established investment companies due to their track record of success and to avoid the risks associated with sponsoring an unknown venture. Not to mention, it's much easier to secure a loan from a single person than to assemble a group of investors. Increasing the number of participants may also reduce your profit margin. You should also remember to legally structure your transactions so that investors do not have an undue influence over the decision-making process. Making them limited partners is the simplest way to achieve this, but even that takes a lot of legal paperwork. Illiquid Asset Crowdsourcing is deemed an illiquid investment, i.e. these are investments that are difficult to sell for cash if the need arises. A buyer will need to be found for the property you've invested in, which can take time and in some rare instances lead to a decline in the holding value. Real estate is also considered an illiquid asset, which implies that withdrawing money from the investment for whatever reason is more difficult than withdrawing money from a brokerage account invested in stocks. Who Can Invest In Real Estate Crowdfunding?   Real estate crowdfunding is currently open to both accredited and non-accredited investors. Crowdfunding was previously open to accredited investors only — those who either have logged $200,000 in annual income for the past two years or currently have $1 million in net worth not counting their home — until former president Barack Obama’s securities deregulation law opened real estate crowdfunding to all investors. The 2012 Jumpstart Our Business Startup (JOBS) Act has been phased in overtime; in 2016, a provision opening real estate crowdfunding to virtually anyone went into effect. However, there are limits. The non-accredited investor is restricted to investing no more than 5% of their annual income if they earn less than $100,000 per year. Given the capital restrictions, it’s important for a non-accredited investor who wants to find a real estate crowdfunding platform that can meet them at a contribution that makes both legal and financial sense for them. The industry norm in real estate crowdfunding is a $50,000+ minimum capital requirement for investors to get started. This is a powerful investment and needs to be made available to more investors to broaden access to wealth creation and financial security. Holdfolio is proud to work with non-accredited investors who can contribute $20,000 of capital or more in our real estate crowdfunding. How You Can Get Involved Now that you know what crowdfunding is and how it works, you probably want to know how you can get involved. Holdfolio’s online platform and small minimum investment amount have made real estate investing a real and easy possibility for everyone. Holdfolio connects like-minded investors to raise capital for lucrative multifamily properties and helps them make the same high return as experienced real estate developers. Real estate ventures were inaccessible for regular investors for a long time because they could not afford the high figures required by the development companies or they simply did not have the right connections. Holdfolio is changing all of that by making real estate investing accessible to everyone. We believe that everyone should be able to access the same opportunities; so we are here to help regular investors to grow their wealth as much as experienced investors. Holdfolio allows you to choose from various high-quality and resilient assets with just a $20,000 investment! Sign up to our investor platform today to partner with other investors and start making institutional quality returns, regularly and completely passively.
Best investments for accredited investors

Sep 6, 2021

10 Best Investments For Accredited Investors To Diversify Their Portfolio

In this article, we have listed the 10 best investments that accredited investors should look into. Read on to learn more about the alternative investment opportunities that will help you make more money! Crowdfunding Real Estate Real estate crowdfunding is the process of gathering a group of investors to raise funds for a real estate project. Through crowdfunding, investors have been able to take part in lucrative investments that they previously would not be able to finance. It’s an excellent way to generate passive income with little risk, as you benefit from acquiring high-value properties by sharing the cost with other like minded investors. Holdfolio specializes in helping accredited investors diversify their portfolios with multifamily holdings that generate considerable returns.  On average, across 3,020 units, the cash return for Holdfolio investors was 19.53%! That’s around double the average return from the stock market over the last century. Investing with Holdfolio provides all the benefits of crowdfunding your own deals with none of the negatives. Spearheading your own multifamily crowdfund is a headache as you need to worry about: Finding and convincing investors Chasing those investors for payments Buying and negotiating properties for sale Day-to-day management of the property Finding tenants to rent the space Save yourself all these headaches and get the same high-returns by signing up for Holdfolio’s investor portal today.  The process couldn’t be simpler. Visit our accredited investor crowdfunding page, sign up to our online investor portal for free, choose one of Holdfolio’s exclusive listings to invest in, deposit your money and that’s it!  Venture Capital for Startups Venture capital (VC) is a type of private equity and a type of financing provided by investors to startups and small enterprises with the potential for long-term growth.  Investment banks, wealthy investors, and other financial institutions provide venture funding. It does not always have to be in the form of money; it can be in the form of technical or management skills. Small businesses with outstanding development potential, or businesses that have expanded swiftly and are poised to expand, are frequently given venture capital. While putting money up can be dangerous, the possibility for above-average profits is enticing. Venture capital funding is gradually becoming a popular source of money for new companies or projects with a short working history (under two years), especially if they lack access to capital markets, bank loans, or other debt instruments. Investors typically receive shares in the company and consequently a say in company decisions. Both accredited and less affluent investors have the opportunity to invest in venture capital. Funds, stocks, venture capital debt, and direct investments are all examples of these types of investments.   Hedge Funds Hedge funds, like ETFs and mutual funds, are professionally managed funds, but they are subject to far less regulation in terms of how they invest their money. In comparison to other funds, this permits them to invest in more intricate projects or asset types.  When compared to more popular ETFs and mutual funds, the ability to invest in these alternative investments and apply advanced investment strategies (shorts, options, derivatives, etc.) modifies the risk and reward profiles of these funds. Hedge funds can be highly expensive in terms of fees, but they are comparable to other products available to accredited investors. Hedge funds allow you to invest in a certain money manager or a fund that follows a specific investing concept that appeals to you. This could enable you to participate in an investment strategy that you don't have the time or competence to implement on your own. After researching the fund managers and investment objectives of those funds using Form ADV, you'll need to call a hedge fund and inquire about minimum investment requirements. You'll also need to prove that you're a qualified investor. There is no centralized accreditation authority or defined system in place. Each fund uses its own methods to determine your eligibility. You may be required to give proof of your income, assets, debts, and experience through licensed third parties, such as a financial institution with which you have accounts, an investment advisor, or an attorney. Artwork This alternative investment can be appropriate for you if you are an art collector or an investor who enjoys art. The worth and value of each piece are determined by its individuality. Costs can be very large and illiquid.  These types of investments are deeply sensitive to the age of the artwork and other particularities. Exclusivity brings greater pricing, but also larger profits. The artist's celebrity is also a significant factor.  There are platforms and tools available that can assist you in making a well-informed investment decision. Thanks to sites like Masterworks, investing in fine art has become easier in recent years.   Merchant Cash Advances A merchant cash advance provides a business with a lump sum of operating capital for a specific and immediate requirement. In exchange for the security of an immediate financial input, the company pays a portion of future sales. This is a short-term loan, usually ranging from three to twelve months. Unlike traditional loans, financing is not regulated, which means that business owners can utilize the funds any way they see right. There is the potential for large profits in addition to the inherent value that is supplied. Returns can be substantially greater than those available in standard high yield investments in the public markets. Adding alternative assets like merchant cash advances to your investment portfolio can help you reduce risk and protect your portfolio from instability. The stock market and merchant cash advances have little in common. A mix of traditional and merchant cash advance investing would produce a healthy, well-balanced return. Platforms for merchant cash advances, such as Supervest, connect investors with merchant funding organizations that pool their funds for specific businesses. Unlike past methods of investing in MCAs, this platform greatly reduces risk. A maximum of 5% of an investment can be made in a single business at a time. Hundreds of companies can be invested in at the same time by investors.   Non-fungible tokens (NFTs) NFTs are digital assets that are kept on the blockchain and represent unique ownership of that item.  The industry grows in popularity. OpenSea, an NFT trading platform, experienced more than $1 billion in trading volume during August 2021. According to a Wave spokeswoman, more than $2 billion in NFTs were traded in the first quarter of 2021, 131 times the volume in the first quarter of 2020. As a financial professional, investing in NFTs during a sideways drifting market appears to be profitable thus far. Since they have only been an emerging crypto asset class for a few years, the non-fungible token market has experienced spectacular volume gains year after year. From the first half of 2020 to the first half of 2021, the total market volume increased from $13.7 million to $2.5 billion. It could be a good idea to consider NFTs as a means to diversify your portfolio by potentially investing in these investable assets to add or subtract risk to your holdings. NFTs have limitless applications and tokenization possibilities for both tangible and intangible things. From combating avatars to creating eternal works of art, the future of NFTs is dependent on the free market's limitless ingenuity.   Commodities Though lacking the allure and media darling status of NFTs or cryptocurrency, the $20 trillion commodities market—a financial sector where raw materials are transacted—continues to be a preferred investment vehicle for accredited investors who favor strong returns and need an investment that will weather high inflation or a weakening dollar. The term “commodity” may be new, but its goods are found throughout daily life. The gas powering automobiles was one oil traded on a commodities market. The gold found in cell phones was once traded as a commodity. Rubber, wheat, electricity—these are all traded as commodities before they get to consumers. Because of persistent demands for these goods which rise in times of high inflation, commodities are a class of investment that does well against weakening currencies. When the dollar or another form of currency loses buying power, prices rise and so too do the price of commodities. One should not mistake these for uniquely stable investments, however. Individual commodities are notoriously volatile and should be part of a diversified portfolio that includes other commodity types and investments. A good way to get started in this investment type is through a commodity fund, which is a collection of commodities. Similar to the way a hedge fund invests in a range of securities, a commodity fund like BlackRock offers investors a share of a basket of commodities to minimize the risk of their fluctuating price for investors who want to enjoy the strong returns they offer. Commodities have an annual gross exceeding 20 percent, double that of the average stock. Cryptocurrency Cryptocurrencies have exploded into the spotlight as their own asset class in the previous five years. Cryptocurrency data demonstrates that in the last ten years, they've grown from nothing to a market valuation of about $2 trillion. Without a doubt, it's been a phenomenal rise. In terms of the magnitude of returns investors have made, this is the quickest rise of any asset class in history.  Unlike conventional currencies, cryptocurrency is supposed to be a store of value that is immune to depreciation and inflation. In times of economic distress, governments print money to compensate for the imbalance, which leads to inflation, which can swiftly spiral out of control. Cryptocurrency prices, on the other hand, are unaffected by the influx of cash that would otherwise depreciate government-issued fiat currencies. So, how do you get started with cryptocurrency investing?  Many trading apps allow you to buy popular cryptocurrencies such as Bitcoin, Ethereum, XRP, and others. eToro, a social investment software that allows users to replicate the trades performed by expert crypto traders on the site, is the finest tool we’ve found for investing in cryptocurrencies.    Online Business Buying and selling online businesses is one of the up-and-coming alternative investments for accredited investors. Websites are the virtual world's real estate. Many see buying and selling websites as business investments in the same way that some individuals choose to invest in properties. To acquire ownership of a website that generates a reasonable monthly income, one needs to be willing to spend at least 10 months of earnings. Because the labor involved in running most websites can usually be outsourced fairly cheaply, sellers frequently sell because they desire a huge lump amount to spend in other ventures. There are a number of online investment platforms, such as Empire Flippers, that connect accredited investors with well-established online entrepreneurs. Investors get to choose which firm to invest in based on the track record, acquisition criteria, and strategy of the business operator. Until the business is sold in 2-4 years, investors will get quarterly payments and reports.   Collectibles  Collectibles are goods that are worth significantly more than their initial purchase price and are classified as alternative investments—vehicles that do not fit into any of the other categories, such as stocks, bonds, cash, or real estate. Investing in this asset class can be both rewarding and beneficial to your financial goals.  There are various collectibles that one can choose to focus on. Here are some of the most common and profitable collective items: Wine: It’s widely understood that wine improves in quality and value as it ages. Some wines, on the other hand, are better suited to collecting than others. For example, Sotheby's auction house in 2017 sold five bottles of a 1945 Romanee-Conti burgundy for $1.98 million. Before the vines were destroyed, only 600 bottles were created. Fine Art: Paintings by great painters from the past are almost priceless, which is why acquiring fine art can be a financially rewarding investment. For example, in 2018, a painting by living artist David Hockney titled "Portrait of an Artist (Pool with Two Figures)" sold for $90.3 million at a Christie's auction. Celebrity Items: Celebrity-related products can be considered valuable, and some individuals are willing to pay a high price for them. Russell Crowe sold personal belongings to fund his divorce in April 2018. The armor he wore in the movie "Gladiator" sold for $117,000 at a Sotheby's auction titled "The Art of Divorce," and his leather jockstrap from "Cinderella Man" sold for $6,500. There are more items that can be collected by those who are interested such as coins, classic automobiles, stamps, vintage jewelry, antique furniture, and more. Such items can be found and auctioned over online platforms such as Collectable, one of the best auction websites.   Alternative Investments: A Smart Compliment to a Solid Investment Foundation We’ve listed some of the best alternative investment opportunities for accredited investors. We highly suggest that any investor who's interested in these alternative investments study the risks and benefits before diving in. Here at Holdfolio, we have a team of professionals who can help you on how to diversify your portfolio and your investments to get the best out of passive income investments.  Holdfolio combines knowledge, strong partnerships, and innovative technology to deliver high-yield, professionally managed real estate opportunities to passive investors. So visit our accredited investors page today to begin growing your wealth.
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Mar 30, 2021

5 Reasons a Property Management Company is Key to Your Rental’s Success

The Benefits of a Property Management Company A property management company could be a beneficial component to your rental's success. A property management company, otherwise known as a PMC, deals directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.  This allows you to outsource some of the tasks you don't want to deal with for a small fee. Below are five reasons that will encourage you to look into hiring a property management company for your rentals.  1. Property management companies are full of industry experience.  Hiring a property management company provides many benefits to both new real estate and veteran investors. PMCs give you a support team full of individuals who have many years of experience in the industry and can assist you in making the best decisions for your rental.  A majority of property managers are licensed real estate agents, meaning that they have a good understanding of the industry. This allows you to have a group of professionals that know how to price your rentals accordingly. Property managers also have in-depth knowledge of the fair housing laws and local laws that affect both landlords and tenants. These laws are very specific, and without a deep understanding of their complexities, one could easily break them.   2. A PMC is an established point of contact for tenants.  One benefit to having a property management company at hand is the fact that it relieves you of having to constantly keep in contact with your tenants. A PMC can also prevent you from losing money because he or she will work diligently to place new tenants in your property so it doesn't sit idle.  An experienced PMS can make life easier for your tenants with someone available at all times, especially if you happen to be busy or out of town. This is very convenient for addressing problems like noise complaints, parking issues, etc. It also is beneficial when tenants need to make maintenance requests for things such as replacing fire alarms or lights. Allowing someone else to handle many day-to-day responsibilities saves you valuable time.   3. Property management companies will handle tenant issues.  One of the biggest benefits of property management is that the property manager will handle tenant screening. Having experience with hundreds of applications, property managers tend to be able to spot the red flags that a potential tenant may possess. This could include not being able to pay rent, or having a history of causing damage to the property over time.  Property managers can also save you the trouble of having to evict people who can't pay rent on time, and ensure that the process of paying rent is simple. Additionally, a PMC can handle any lawyer fees that may be associated with evictions, and damages made to the property.   4. A PMC can market your rental for you. Another upside to hiring a property management company is that they can take over all of the marketing responsibilities. A PMC will typically develop a marketing strategy for each property that is dedicated to targeting your market segment to get the best results possible, from messaging to the platforms your audience is active on.  These professionals have a deep understanding of needing to fill your property with great tenants so that you can turn over the property quickly. A valuable tenant could mean the difference between having to replace carpets or simply having them cleaned.    5. Working with a property management company saves you money on maintenance & repairs. A property management team saves you time. You won’t have to go to the property to fix every problem that may come up such as clogged toilets, broken appliances, and dealing with locked out tenants. The team will handle problems as soon as possible, which will keep tenants happy. It is also a great way to save money because an experienced management team is better equipped to find a cost-effective solution to a common problem. Hiring a PMC is a simple way to save time managing your property. With a PMC, experienced professionals deal with time-consuming tasks, at a relatively low cost, allowing you to scale your rental properties and increase your cash flow.