Stock Taking a Dip?
Debt-Based Real Estate Investment with Crowdfunding
Could be the Smartest and Safest Choice in Today’s Market
There’s nothing like current events such as BREXIT to remind us of the volatility of the stock market. Events far from home can have a substantial impact on your nest egg. So what’s an investor to do?
According to Louis Glickman, “The best investment on earth is earth.” Let’s face it, land is the one asset that they’re just not making any more of. And that means it will always have value. Real estate is tangible, something you can visit and see for yourself. Not an electronic display or statistic in the news.
Why Debt-Based Investments?
Debt-based investments, or investment in the notes, are secured by the property itself and personal guarantees. The returns on these investments are fixed, and typically have above market yields. Equity investments on the other hand do have the potential for long term gains, but also associated costs for maintenance, emergency repairs and the like. Debt-based investments are also short term, typically 6 to 12 months for residential notes. That makes them far more liquid than an equity investment as well. Simply collect your interest payments and after your payoff, re-invest!
Let’s see: predictable, reliable, more liquid, and less hassle than equity investments? Why be a landlord, when you can be a banker?
Crowdfunding is rapidly becoming the smart way to invest in real estate. This is especially true if you’re not a real estate expert. With today’s technology, the best crowdfunding sites will give you full transparency on the properties and visibility to your account 24×7, just like your online banking.
Look for crowdfunding sites that do their own underwriting and pre-fund their projects. That will mean that they will have done all the due diligence so you won’t have to.
With Crowdfunding it’s easier to diversify your portfolio as well. You can invest smaller amounts (often as little as $5,000) into a number of properties. You can invest in neighborhoods you know well, or spread your investments geographically.
You’re in control. You pick the properties you want to invest in and you pick how much you want to invest. This is far more appealing than your typical REIT where you invest a big chunk of cash in a real estate pool without knowing what the projects are.
Regardless of the economy, people will always need a place to live, a place to shop, a place to play. That’s why real estate always has real value. It’s true that you can certainly lose money in real estate, like any other investment. But Debt-based real estate investments with a good crowdfunding site could be your best bet.
Zeus CrowdFunding offers Investors high returns, Semi-Liquid Withdrawal Option, Guaranteed and Non-Guaranteed Options and a Funding Bonus for investments of over $50,000 in a single transaction. All investments are backed by 1st lien position and personal guarantees. Zeus Crowdfunding underwrites and pre-funds all offerings