According to a recent Gallup poll, Americans today consider real estate their best long-term investment option – with 30 percent selecting it over stocks and mutual funds, gold, savings accounts and CDs, or bonds. The wealthy think even more highly of real estate, with 38 percent of high-income respondents picking as the best investment.
Investor interest in real estate has been growing steadily since 2011, and for good reason: the U.S. real estate market is improving. We’ve seen it for a while in our Miami hometown – where home prices are rising, new development activity is booming, and only three percent of condos are unoccupied. The rest of the country is heating up too, especially for commercial and multi-family real estate.
So if you’re interested in passive real estate investing, how do you make it a reality? How do you find deals that appeal to you? How do you conduct the necessary research and due diligence on each opportunity? How do you fund a deal and stay informed on the property or project?
Traditionally, your options for answering all of those questions have been limited. Real estate investing has typically come in one of two forms – the “Country Club” model and the Real Estate Investment Trust (REIT) approach – that are inherently restrictive.
- The “Country Club” Model: Rely on your network for referrals.
It means… if you’re looking to learn about new investment opportunities, you better be well connected. You’re also likely to only find out about investment offerings for projects in your region
- The REIT Approach: Buy shares of a pool of properties.
It means… you’re not in the driver’s seat. Since an REIT’s board members or trustees decide what properties the trust buys, sells, or finances, individual investors have no control over which projects they invest in.
Like other types of investing, these models will work well for some investors and less well for others. Accredited investors with experience and knowledge about real estate are limited by both of these approaches, since they lack the access to seek out new opportunities and compare them against each other.
Yet now, thanks to Title II of the JOBS Act, the two traditional routes aren’t investors’ only options.
Accredited “equity” crowdfunding is disintermediating the real estate investment landscape by giving investors direct access to opportunities. Under new regulations, accredited investors can find and fund real estate deals that match their preferences and interests by browsing and comparing open offerings on platforms like EarlyShares.
In fact, EarlyShares is an all-in-one source for quality real estate opportunities. The EarlyShares executive team has a strong track record of success in the real estate industry and only works with experienced project sponsors and partners. We employ a rigorous selection methodology and are highly selective of the opportunities posted to our platform – helping ensure investors have access to cash-flow generating properties and projects.
Once an offering makes it to our site, we provide investors with all of the tools and resources they need to evaluate the investment opportunity, conduct their due diligence, ask questions of the sponsor or developer, and complete their investment transactions. We make it simple, with a seamless four-step investing process built in to our state-of-the-art platform.
It’s real estate investing, reinvented… and it’s your way to capitalize on the rebounding U.S. real estate market.
Developers, Syndicates & Sponsors: Have an exciting property or project and a record of real estate industry success? Email [email protected] to apply to host an equity or debt investment offering for your deal.