There isn’t anyone in our business who doesn’t believe real estate is a good investment.
It’s why so many real estate professionals save money from their commissions to buy property.
What other investment exists that lets you use other people’s money to
- collect passive income
- appreciate in value and
- benefit from favorable tax treatment
All of the above are important reasons to invest in real estate.
But with higher property values and tougher borrowing requirements, it’s getting harder for an individual to be a real estate investor in New York.
Could crowd funding help you realize your investment goal?
What is crowd funding?
Crowd Funding is the process of raising small amounts of money from people for a specific project or goal.
An example of crowd funding is Kickstarter, where they allow an artist to set up a campaign to collect money so they can start and complete a creative project.
While raising money for charitable and artistic efforts isn’t new, it’s only when you’re asking people to make a contribution to invest with others that required approval from the Securities and Exchange Commission.
That is until last year, when Congress passed and President Obama signed into law the Jumpstart Our Business Startups Act of 2015.
U.S. JOBS Act
Essentially, what the JOBS Act made possible was the ability to raise money from individuals to invest in businesses or projects without requiring approval from the SEC for each business or project.
It created an opportunity to crowd source finance real estate investments with individual contributions ranging from $5,000 to $20,000 as an equity investment.
This makes participants investors in an specific opportunity in which investment returns are distributed to each investor in the fund.
Investment firms have popped up throughout the country to create investment platforms for small investors to join funds investing in office buildings, development projects and luxury residential properties.
The only people I’m not seeing realize this opportunity are professionals listing and selling residential real estate in New York.
Is this an opportunity your missing?
Think of it this way …
For every property owner’s home you sell, that is a potential real estate investor willing to join a fund to buy a property in the hottest real estate market in the country.
How many times have you wished you had an investment group who could buy your listing to fix and put back on the market with you as the exclusive listing agent?
You should be exploring what this opportunity could mean for the growth of your business.