How Risky is Real Estate Crowdfunding?
Since real estate crowdfunding is such a new and innovative financial sector, many real estate borrowers and investors still have concerns about how risky working with Zeus CrowdFunding might be. We understand! Due diligence is always a necessity when making an investment. That’s why Zeus conducts thorough due diligence on every crowdfunding opportunity listed on our site.
No real estate loan or investment is completely without risk. However, after weighing the risks versus rewards on a real estate crowdfunding deal, most people discover that the risks are actually much lower than doing a traditional real estate deal. Here’s why:
1. Experienced leadership
Many of the real estate crowdfunding sites in the United States are startup companies with little, if any, experience in actually funding real estate. These businesses end up passing the responsibility of vetting deals on to their customers, which creates a great deal of risk. At Zeus, we are a team of passionate and proven real estate financing professionals committed to true transparency, formidable security, classic underwriting, and lightning speed. We aren’t a new company—For more than a decade, we’ve funded more than $250 million in residential and commercial real estate using our offline crowdfunding platform and nearly $2 billion in traditional mortgage loans.
2. Lower risk through diversification
One of the best aspects of real estate crowdfunding is that it allows investors to diversify their portfolios with far less capital. On a typical real estate investment, an investor might need to make a 20-percent down payment. That means on a $300,000 deal, that investors would need to put $60,000 down. With Zeus CrowdFunding, that same $60,000 would allow the investor to buy into 2–4 different deals. Our Z-Crowd investors can invest as little as $5,000! That spreads the risk out over multiple investments.
3. Pre-funded deals
Before a deal is published for investment on ZeusCrowdFunding.com, we have already performed quite a bit of due diligence on it. Our loan professionals each have an extensive background in real estate and know precisely what to look for when it comes to deals with acceptable risk and solid return potential. Our team actually helps our investors pick winning real estate investments by filtering out the losers before they ever reach our site. But that’s not all—Zeus CrowdFunding actually PRE-FUNDS every deal that we publish on our site. That means borrowers get their funds immediately and Zeus CrowdFunding takes on the risk.
If you still have any concern or questions about Zeus CrowdFunding’s customizable lending and investment platform, that’s no problem! You can call our real estate experts anytime at 1-800-ASK-ZEUS. We’re always ready to help!