What Real Estate Crowdfunding Projects Are Investors Looking For?
Investors are selective when it comes to investing in real estate crowdfunding projects. That’s one of the reasons that Zeus CrowdFunding has become an industry leader in real estate crowdfunding: All of the projects on our site are researched and pre-funded by our lending experts before they are made available for investment on our website. Not every real estate project makes the cut, allowing our investors to browse only opportunities with a high chance of excellent returns. After all, Zeus CrowdFunding funds up to 80 percent of a property’s after-repair value (ARV). If we aren’t confident we will get our money back, we don’t pre-fund a project or list it on our website!
Naturally, some projects generate higher returns and investor interest than others. So, what does it take to get your real estate project pre-funded and listed on ZeusCrowdFunding.com for investment? What exactly are real estate crowdfunding investors looking for from Zeus CrowdFunding projects? Which projects are they most likely to invest in? Here are a few guidelines:
A High ARV – In order to be a worthwhile investment, a property that needs repairs will need to have a projected ARV that is much higher than the cost to purchase it and fix it up. The higher the ARV, the larger the potential profits might be. Properties that project to have ARVs that don’t move the needle much on the sales price will not be as attractive to investors.
Fast Turnaround Times – The faster a property can be fixed up and flipped, the faster investors can get their returns. Most real estate crowdfunding investors do not look at individual projects or properties in their portfolios as long-term investments. Typically, they prefer to get in, get out, and get on with the next investment. For this reason, projects that are all lined up for a quick turnaround are especially prized by investors.
Single-Family, Multifamily, and Light Commercial – Not every piece of real estate is right for real estate crowdfunding. Most investors are looking for projects that are always in high demand. That means single-family residences, such as houses; multifamily residential properties, such as condos; and light commercial properties such as storefronts. These properties typically fall within the $150,000–$2 million range. Other properties, like highrises, ranches, or warehouses likely won’t attract the demand for a quick turnaround.
Projects in Active, Viable Markets – Newsflash: Properties in the San Francisco Bay Area are in higher demand than those in Flint, Michigan. That’s no slight against Flint—many varied economic and social factors contribute to the relative temperature reading of a given metro area. Once again, most real estate crowdfunding investors are looking for projects likely to sell fast for a high ARV. Therefore, they’re most likely to gravitate toward properties in hotter real estate markets. The more active the market, the more attractive the crowdfunding project.
Projects That Don’t Qualify for Traditional Financing – Some of the best opportunities in real estate crowdfunding come from projects that don’t qualify for traditional mortgages or other traditional methods of financing. Often, it’s nothing more than a time-sensitive flipping schedule that steers borrowers away from traditional financing and toward crowdfunding. Sometimes, these borrowers have a credit issue that prevents them from traditional lending. Those factors don’t prevent these projects from becoming great investments, however. Zeus CrowdFunding considers each project differently than a traditional bank, and we offer financing in as little as four days.
Want to get an even better handle on the real estate projects that crowdfunding investors are excited about? Sign up for a free account today at ZeusCrowdFunding.com! It’s fast and easy, and you can browse all of the best real estate crowdfunding options we have to offer. It won’t take long to identify investors’ favorites. You can submit your own real estate project and begin borrowing money as soon as you’re ready!
Not ready to join the Z-Crowd just yet? Follow us on Facebook to receive compelling data that just might change your mind!