The word “real estate crowdfunding” is used frequently on the internet.
Thanks to websites like RealtyShares, crowdfunding has gotten a hold in the real estate market.
RealtyShares has been compared to the “Lending Club of real estate,” to put it another way.
This analysis will examine RealtyShares to determine whether it is, in fact, the top online investment platform available.
You’ll determine if crowdfunding is appropriate for you.
In conclusion, I will reveal the answer to the most frequently asked questions regarding RealtyShares and real estate crowdfunding sites.
However, the most significant thing is that you’ll discover the precise strategy many others have employed to grow their internet marketing businesses to over $40,000 a month in primarily passive income.
RealtyShares is a real estate investing program.
Like most real estate investing training courses, you’ll likely be exposed to the “Big 3” investing types:
- Flipping
- Wholesaling
- Long-term buy-and-hold
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it’s the world’s oldest wealth-builder.
However, before you leave this RealtyShares review and go sign up, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is highly capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a more substantial financial cusAn excellent
A good way to get yourself there is with Digital Leasing.
Digital Leasing takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cash flo
- Interest payments
- Mortgages
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Leasing allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple of thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Leasing.
What Is RealtyShares?
RealtyShares is known as a real estate-focused online investment platform. You may connect with lenders, borrowers, and sponsors all in one spot by investing on the website.
RealtyShares concentrates on smaller business investments like single-family home flips, whereas other online real estate platforms prioritize commercial and residential properties.
RealtyShares invested in over 200 properties in dozens of cities across 17 states in 2014. It cost $300 million in property value in 2014.
A RealtyShares feature that sets it apart from other real estate investments such as REITs is the ability to invest in investment properties.
How Does RealtyShares Work?
RealtyShares reviews investment opportunities to ensure they meet the requirements of real estate crowdfunding platforms. The investment will be listed on the website if it does.
It will contain everything, from general details about the transaction to legal documents that detail the transaction’s risk elements.
Accredited Investors can buy anything ranging from a small portion of a more significant investment to the entire investment.
The site dashboard tracks the investment’s earnings history and provides investors with year-end tax information.
Investors can fund equity investments or real estate loans. Commercial real estate can be a good place to put your money. The platform will even allow you to introduce your investment, financed by the website.
To invest in RealtyShares, follow these five simple steps:
- Register for the platform.
- Examine real estate investments (you must first wait 30 days for the SEC’s “cooling off” period).
- Examine and complete your investments
- Wait for the investment’s funding goal to be met (100 percent funding)
- Online management of your real estate investments
Certainly, preferred equity deals invest in RealtyShares subsidiaries’ debt obligations, known as payment-dependent notes.
The performance of the underlying loans connects to the implementation of these notes. RealtyShares uses a third-party trustee in these transactions to limit counterparty risk for investors.
ROI (return on investment) Equity investors typically receive monthly distributions, whereas debt investors receive quarterly distributions.
Distributions are deposited directly into your linked bank account, and equity investors will share any net appreciation upon selling residential and commercial properties.
Why Invest With RealtyShares?
Instead of putting all of their money into a select few investments, RealtyShares enables real estate investors to vary their real estate holdings.
Investors can participate various of transactions by contributing to loans or taking on private equity holdings. As a result, investors can now join larger ventures previously only open to substantial investors.
Investors on the platform can diversify their holdings in various properties and investment positions geographically.
The investments are also passive in nature, similar to financial assets. The investor is not required to be involved in the day-to-day management of a property.
The service has proven beneficial to investors and real estate companies in need of capital.
RealtyShares conducts the investigation. The site evaluates each opportunity before conducting a background check on the principal executives of the sponsoring real estate company or borrower.
They also look over pro forma financial statements, title reports, property inspections, comparable sales data, and other pertinent information.
The findings of their investigation are available on the platform or can receive via email. As a result, risk factors for each investment are known ahead of time. RealtyShares handles all of the research for you.
Any funds invested in the transaction will be fully refunded to you if the investment does not close for any reason.
Pricing. There are no registration fees on RealtyShares, and once registered, you can browse investment listings at your leisure. RealtyShares charges a one-percentage-point annual fee to manage equity investments.
Additionally, they may charge an “over-raise” fee to cover the initial legal costs and other expenses associated with the investment.
For debt investments, RealtyShares charges a servicing fee equal to the difference between the borrower’s interest rate and the investors’ net interest.
Security. RealtyShares employs SSL with 128-bit encryption, similar to that used by banks. Third-party security companies review the platform regularly to meet security standards.
Furthermore, the platform does not store your banking information on its servers. You will be logged out automatically after 15 minutes of inactivity.
If you invest in debt securities, your funds will receive into an FDIC-insured account with Wells Fargo, N.A. (up to $250,000). The broker-dealer partner and a third-party bank hold equity and preferred equity investments in escrow.
Clearing agency. North Capital Private Securities Corporation provided execution services for RealtyShares’ equity and preferred equity investments.
RealtyShares is also subject to North Capital’s compliance and regulatory oversight. North Capital is a registered broker-dealer and a member of FINRA and SIPC.
I’ll keep you updated. RealtyShares provides quarterly updates on equity and preferred equity investments.
However, additional updates gave as new information becomes available. Information is available online and via email sent directly to you.
Reporting of taxes Before April 15th, the platform will also provide you with the necessary tax documents (IRS Schedule K-1 and 1099-INT) for your investments.
They are holding time. Each RealtyShares investment has a holding period ranging from less than six months to more than five years. However, they may extend beyond the original production.
The initial investment is minimal. Although the minimum for any single investment is $5,000, some assets may be available for as little as $1,000.
Debt Deals And Equity Investments
Debt Investment
To begin, I made a few smaller debt investments,mainly because most of these had low minimum investments. The investor is a lender to the transaction sponsor or property owner when making these assets.
Investors receive a predetermined rate of return based on the amount invested and the loan’s interest rate, which the property is responsible for securing.
The investor is at the bottom of the capital stack in a debt deal, prioritizing claiming a payout from the property.
These transactions were simple to understand, but one of the major drawbacks is that the loan’s interest rate limits return. In other words, their profits are limited.
Preferred Equity Investments
As I became more at ease with RealtyShares, I decided to move forward and look at preferred equity investments.
With these investments, the investor becomes a shareholder in a particular asset. Their stake depends on the quantity of money invested.
Returns are a percentage of the property’s rental income, less any service fees paid to the crowdfunding platform.
Investors receive compensation through a portion of the appreciation value after the property’s sold.
What drew me to these equity deals was the possibility of profiting from the sale of the property.
There was no cap on returns, and the tax benefits were exceptional.
One advantage of owning an investment property is deducting certain expenses associated with its ownership, such as depreciation and repair costs.
Real Estate deals in equity crowdfunding are typically structured through an LLC, taxed as a flow-through entity.Inve stors can benefit from the depreciation deduction without directly owning property.
With the possibility of higher returns comes the prospect of higher risk. These transactions are typically riskier than debt transactions, but I was willing to take a chance.
Is RealtyShares A Scam?
So, is RealtyShares a scam? Not technically. You can make money with this program, but it’s definitely not as easy as RealtyShares makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual profit margins on real estate investments are pretty small.
NowThere’sthing wrong with front-loading the work and making money later.
But if you’re grinding it out for 3 months – looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property – and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Leasing.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a tran actualestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Leasing.
Are There Alternatives To RealtyShares?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2024?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect busin,”s”, the research IS conclusive:
Digital Leasing is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Leasing is for you.
Why?
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Leasing business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to search for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you k,ind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Leasing, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Leasing with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus there’s no money coming in until the next tenant moves in).
With Digital Leasing, a 100% online business with minimal maintenance and ongoing costs, you never even have to think aboconsiderk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in smonthlysive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Leasing, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Leasing, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Leasing makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like RealtyShares which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms, thanks to Digital Leasing.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Leasing.
