Looking to invest in commercial real estate? RealCrowd is a real estate crowdfunding platform that might be worth your consideration. In this comprehensive RealCrowd review, we’ll tell you everything you need to know about the company, including what crowdfunding is, when RealCrowd was started and by who, how it works, whether it’s worth your time and investment, whether the company has faced any complaints or lawsuits, what we like about RealCrowd and what we don’t like, and alternatives to RealCrowd.
Who started RealCrowd and when?
RealCrowd was founded in 2013 by Adam Hooper and Jordan Fisher.
Hooper is the company’s CEO and has over 15 years of experience in commercial real estate investing, development, and finance. Fisher serves as the company’s president. He has over 12 years of experience in commercial real estate development, investment, and finance.
RealCrowd’s founders say their mission is to democratize access to top commercial real estate opportunities and provide superior returns to investors.
What is crowdfunding?
Crowdfunding is a way to raise money for a project or venture by soliciting small contributions from a large number of people. Real estate crowdfunding is a specific type of crowdfunding that allows individual investors to pool their money to invest in commercial real estate projects.
What is RealCrowd?
RealCrowd is a Real Estate Investment Trust (REIT), which means that it’s a company that owns, operates, or finances income-producing real estate. RealCrowd is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).
It connects commercial real estate developers with potential accredited investors, who can then choose to invest in projects listed on the site. RealCrowd does not actually invest any money itself. Rather, it provides a space for developers and investors to connect and negotiate deals.
What types of investment opportunities does RealCrowd offer?
RealCrowd offers a broad selection of investment opportunities. The company’s website includes detailed information about each opportunity, including photos, videos, descriptions, and investment terms.
Some of RealCrowd’s past projects include a luxury condominium development in Maui, a mixed-use development in Atlanta, and a student housing complex near the University of Alabama.
What are the requirements to invest with RealCrowd?
In order to invest with RealCrowd, you must be an accredited investor. The SEC defines an accredited investor as someone with a net worth of at least $200,000 (or $300,000 if married) or an annual income of at least $200,000 (or $300,000 if married) for the past two years.
You must also be a U.S. citizen or resident alien and have a valid Social Security number or Individual Taxpayer Identification Number.
What are the fees associated with RealCrowd?
RealCrowd charges a platform fee of 0.50% on the total amount invested in a project, as well as a success fee of between 0.75% and 12%. These fees are paid by the developer, not the investor.
In addition, RealCrowd collects a closing cost of $750 from each project. This fee is also paid by the developer.
Is RealCrowd a good investment?
RealCrowd is a relatively new company, so it’s hard to say definitively whether or not
What are some of the advantages of using RealCrowd?
Some of the advantages of using RealCrowd include the following:
- RealCrowd offers a broad selection of investment opportunities, so investors can choose projects that fit their needs and interests.
- RealCrowd provides detailed information about each investment opportunity, which helps investors make informed decisions.
- RealCrowd charges relatively low fees, which means more of the investor’s money goes toward the project.
- RealCrowd is a member of FINRA, so it is subject to financial regulations.
What are some of the disadvantages of using RealCrowd?
Some of the disadvantages of using RealCrowd include the following:
- RealCrowd is a relatively new company, so there is less data available about its performance.
- RealCrowd is only available to accredited investors, so most people cannot use the platform.
- RealCrowd does not actually invest any money itself, so it is not directly responsible for the success or failure of projects.
What we like about RealCrowd
There are a few things we like about RealCrowd:
- The company is registered with the SEC and is a member of FINRA, which gives it some legitimacy.
- RealCrowd offers a broad selection of investment opportunities.
- The company’s website is well-designed and easy to navigate.
- RealCrowd provides detailed information about each investment opportunity, including photos, videos, and descriptions.
What we don’t like about RealCrowd
There are also a few things we don’t like about RealCrowd:
- You must be an accredited investor to invest with RealCrowd, which excludes a lot of people.
- RealCrowd charges a platform fee and a success fee, which can eat into your profits.
- The company is relatively new, so there’s no track record to judge it by.
Are there alternatives to RealCrowd?
If you’re interested in investing in real estate but don’t want to use RealCrowd, there are several other platforms you can consider, such as the following:
- Realty Mogul: Realty Mogul is a real estate crowdfunding platform that offers a variety of investment opportunities. Like RealCrowd, Realty Mogul charges a platform fee and a success fee. However, Realty Mogul’s platform fee is higher, at 0.85%.
- Fundrise: Fundrise is a real estate crowdfunding platform that offers a variety of investment opportunities. Unlike RealCrowd, Fundrise does not charge a platform fee. Instead, it charges an annual management fee of 0.15% to 0.85%.
- Rich Uncles: Rich Uncles is a real estate investing platform that offers a variety of investment opportunities. Unlike RealCrowd,Rich Uncles does not charge a platform fee or a success fee. Instead, it charges an annual management fee of 0.50%.
Is RealCrowd worth your time and investment?
RealCrowd has a broad selection of investment opportunities, with something to fit almost every investor’s risk tolerance and goals. It’s also a member of FINRA, so it’s subject to financial regulations. However, RealCrowd is only available to accredited investors, and it charges a platform fee and a success fee. If you’re interested in real estate crowdfunding but don’t want to use RealCrowd, there are several other platforms you can consider.
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