Why We Pre-Fund Every Listing on Our Site
One of the reasons why Zeus CrowdFunding is the fastest real estate crowdfunding site in America is that we guarantee funding for qualified real estate projects. We’re dedicated to providing funding faster, more flexibly, and at a lower cost than our competition. Pre-funding up to 80 percent of a project’s after-repair value (ARV) means that Zeus becomes the first investor in every project and performs all necessary due diligence on every project before listing it on our site. Best of all, we work fast!
It’s a great deal for our borrowers, because they can get the money they need in as little as four days without waiting for weeks on investors, partners, or traditional lenders.
Our investors love it because every deal has already been vetted before it gets published. So, why don’t all real estate crowdfunding platforms pre-fund the deals on their platforms?
Most real estate crowdfunding platforms list a deal on their site and wait for the “crowd” to fully fund the deal (or fail to). While most platforms perform some kind of due diligence on these deals before listing them, there are no guarantees that the deals will be funded in full. That creates serious risk for both borrowers and investors.
That’s not good enough for Zeus CrowdFunding users. By pre-funding every qualifying real estate project, we provide our borrowers with funding within days, allowing them to proceed with their real estate project. Zeus CrowdFunding then makes the offering available to potential investors on our online platform. Pre-funding every deal allows us to transfer risk from the borrower to Zeus CrowdFunding, making for a much smoother and less nerve-wracking experience for our borrowers and investors alike.
The real reason most crowdfunding sites don’t pre-fund their listings is simple: It requires a lot of capital. Only a few platforms, including Zeus CrowdFunding, are financially secure enough to provide pre-funding. Beyond the cost, pre-funding also requires platforms to put a lot of time and effort into the due diligence process. Zeus CrowdFunding is not willing to simply put up any old deal and hope for the best after investing our own capital into the project. Consequently, the thorough, multi-layered due diligence we adhere to before pre-funding ensures that only the highest-quality deals will be listed on our platform.
So why do we do it? Because there are significant benefits in pre-funding for everyone. Pre-funding allows real estate borrowers to receive funding in a matter of days rather than weeks or months, allowing them to avoid delays, minimize the risk of deals falling through, and focus on what they do best rather than spend time raising capital.
There are benefits for investors, as well. Most importantly, pre-funding aligns Zeus CrowdFunding’s interests with those of our investors. We only list deals that we have great confidence in, because if investors reject a pre-funded deal, Zeus CrowdFunding continues to own that investment. Pre-funding also allows investors to start earning returns immediately upon investment, virtually eliminating the risk that a deal will not go forward.
Are you curious about the kind of deals that Zeus CrowdFunding pre-funds and lists on our real estate investment platform? Check out our Investments page now!