Is Real Estate Crowdfunding Offers An Attractive Alternative For Secure Investments?
Over the past several years, home prices have been on the rise – particularly in South Florida. According to the Sun-Sentinel, “In South Florida, median home prices have been on the upswing in recent years and rose modestly in April.” Additionally, more and more people are moving to Miami, adding to an already active real estate market.Realestatearama reports that, “South Florida’s tax environment (no state income tax in Florida), growing tech industry and infrastructure improvements are leading more Americans to relocate to Miami…The trend of Americans moving to Miami is going to continue.”
Still, many people may remain hesitant to invest in real estate after experiencing the depths of the housing crash. It’s true that the days of quick and easy financing are over. But, this is a good thing. It’s been tougher for people to secure loans for investment properties due to a tightening credit market, for good reason. Plus, there are a plethora of investing sources available. People generally have more options now than ever.
However, because investing in real estate through crowdfunding is still a relatively new opportunity for investors, we tend to receive a lot of questions. One frequently asked question we receive is, how is my VestMunity investment secured?
VestMunity investments are secured through an underlying loan between VestMunity and one of our real estate developers. In return for investing in one of our listings, you will receive a borrower payment dependent note from VestMunity. Although this means that there is no guarantee that you will see a return on your investment, you will be in possession of a promissory note backed by VestMunity and our partner developers.
One of our core values at VestMunity is to provide our investors with the utmost transparency. We encourage our potential investors to review all relevant materials of any deal they are contemplating and to research the developers and borrowers we work with. However, all loans have an inherent amount of risk and sometimes it can be difficult to accurately gauge future economic conditions. That is why we vet all of our partner developers, reviewing their level of experience, their history of success, and verifying their compliance with local regulations to mitigate the risk of loan defaults as much as possible.
Because we are so selective, trust that all of our partners have plenty of experience with impressive backgrounds. Being able to utilize this network of relevant professionals provides our investment community with unique access and knowledge in the real estate investing space, and therefore incredible and unique investment opportunities.
But, what’s the best part about investing in a VestMunity offering? You are also investing in our entire community of qualified, accredited investors by allowing us to find bigger and even more amazing real estate investments. This means that as we grow, our community as individuals and as a whole will grow!