Real Estate Crowdfunding

Flip Houses – Fundrise Real Estate Crowdfunding Alternative

Who is Barbara Corcoran?

Who is Barbara Corcoran
Barbara Corcoran

“Shark Tank” star Barbara Corcoran who is an American businesswoman, discloses how to get rid of her secretary (looks like a misplaced sentence) sending one valorous email helped her turn into a business tycoon. The email read, “I consider your rejection a lucky charm because everything that ever happened in my life came on the heels of failure.” She has rejected many participants on ABC’s hit show Shark Tank, but the brilliant tycoon was once rejected by the show herself. Then she became the Founder of the Corcoran group and shark on ABC’s “Shark Tank”. Barbara Corcoran says that “she built her business like a man”. She was just 23 when she started The Corcoran group.

In this article, we will discuss in detail the alternatives of Fundrise Real Estate Crowdfunding and how you can make money and start your own real estate business without any experience or need for money. We will also discuss how to invest in a real estate program the right way. Barbara has created a real estate program that allows anyone to get profit on the red hot real estate market with no experience and without using money or credits.

Table of Contents:

Chapter 1: Fundrise: The outstanding Real Estate Crowdfunding

Chapter 2: Why should people use Real Estate Crowdfunding?

Chapter 3: Alternatives to Fundrise

  • Fast Track Profit system
  • Real Estate Investors and wholesalers
  • Done Deal real estate investor websites

Chapter 4: What is the cap rate? How to calculate the cap rate for real estate?
Summary

Chapter 1:

Fundrise: The outstanding Real Estate Crowdfunding

Real Estate Crowdfunding
Real Estate Crowdfunding

Fundrise is an online rostrum that uses technology to create a new model for real estate investment centered on crowdfunding. Investors can browse offerings, invest online, manage investments through a web portfolio, and receive possible returns instinctively.

Real estate crowdfunding is a relatively new method, which utilizes crowdfunding to raise capital for real estate investments. Through this type of real estate investing, investors can invest in a wide variety of properties without having to deal with mortgage brokers, real estate agents, or contractors. Real-estate crowdfunding (also called property crowdfunding) is a way of raising money for real estate investment by reaching out to a pool of investors to contribute a small amount of money towards a project. It is a form of raising funds that allow small real estate investors to fund big projects.

Crowdfunding is a method for inflating money for businesses and an easier way to access such volunteers for investors. It utilizes the internet and social media channels, such as Facebook, Twitter, and LinkedIn, to reach an audience of possible investors. The idea behind crowdfunding is that many people are willing to invest a small amount, and when they do, large sums of money can be raised quickly. Crowdfunding gives companies access to funds that they might never be able to raise through other means. It also offers the investors the adeptness to become stakeholders in a company or a real estate investment property.

Important key points:

• Crowdfunding proposes different companies the entrance to funds that they might never be able to raise.
• Crowdfunding offers investors the adeptness to become stakeholders in a company or a real estate investment property.
• Real estate crowdfunding is similar to impartial investing since an investor can buy into a property and become a stakeholder.
Back in the day, real estate investors could only invest in real estate by buying a physical property or REIT (Real Estate Investment Trust) investing. However, crowdfunding has opened up a whole new method for investing in real estate.

The best REIT’s are:

  • Public Storage (PSA)
  • Digital Realty Trust (DLR)American Tower (AMT)
  • Well Tower (WELL) and many more.

Chapter 2:

Why should people use Real Estate Crowdfunding?

Why should people use Real Estate Crowdfunding
Why should people use Real Estate Crowdfunding

Crowdfunding can be quick and more systematical than conventional real estate syndications—making it smarter and possibly more accessible than ever before. In the contemporary world, if you want to start a business or raise funds for a project, a privileged method of raising funds to avoid getting into debt is crowdfunding. There are many reasons why you should use Real Estate Crowdfunding. The primary ones are listed below:

Exclusive and small Balance Market:

Because of directives and higher costs put in place after the 2007-2008 financial crisis, some of the big banks have had a tough time making money on smaller deals. This has created an estimated $200 billion-a-year profit-oriented small-balance market to be served.

Quick and efficient:

People who are investors can choose a project they want to invest in, estimate due diligence materials, and track how their investment is performing on the internet. As a sponsoring agent, you can expect a well ordered, faster process because our technology simplifies both the fundraising and reporting aspects of your deal. Visit our website realestatewebclass.com for a fast track profit system.

Efficient cost structures:

Since crowdfunded deals are accessed fully online, overhead and administrative costs could be lower than in banks and other traditional contributors. This enables the platforms to pass along potential savings to investors, borrowers, and sponsors.

Discover certified investors easily:

Real Estate Crowdfunding platforms simplify the process by allowing startups to post their pitch or asking real estate investment groups to present their projects in one spot, where they can be viewed by a broad range of qualified investors online.

Easy and simple process:

A lower level of entanglement and higher observation with the real estate crowdfunding process means crowdfunding investors can have higher control over their investment along with lower preservation costs. There is a straightforward process of real estate systems, and different platforms like realesatewebclass.com are available to help you learn more about them.

Chapter 3:

Alternatives to Fundrise

Alternatives to Fundrise
Alternatives to Fundrise

Even though Fundrise is one of the top real estate crowdfunding websites in the industry, it’s not for everyone. Gratefully, there are a lot of alternatives that you can choose when it comes to investing in real estate online or raising money for your real estate investment property. Remember that restrictions differ from platform to platform. Some platforms will only accept authorized investors in their marketplace. Other platforms have guidelines concerning the types of properties that can experience financing. Some of the alternatives of Fundrise are:

1. Fast Track Profit system:

Fast Track Profit system
Fast Track Profit system

Overview:

If you have recently received an email from any real estate investor or guru telling you to check out a webinar hosted by Barbara Corcoran (Real Estate Billionaire from ABC’s “Shark Tank”) and Cody Sperber, here is what the webinar is all about:
It starts with Barbara talking for a couple of minutes. Then Cody takes over for the rest of the webinar. Cody gives you his background and life story, then goes into successful students he has helped. It seems to go on and on unnecessarily, although he does cover a lot of areas, yet not a lot of applicable information is given to you. The result is he is trying to sell you his “Fast Track Profit System.” I do want to say, the “Fast Track Profit System” does appear to be a good system that likely would work, but not everyone has an extra $1,000 lying around. Also, the “gift” that Cody uses to get people to attend the webinar called the “Golden Deal in a Box (Valued at $367)” is never even mentioned or given to you.

Fast Track Profit System:

Highly profitable offer from Barbara Corcoran of the ‘Shark Tank’. This allows anyone to profit on the red hot real estate market with no experience while using no money and no credit. The offer includes proven conversions, low returns, and huge payouts!
The Fast Track Profit System is a new real estate investment training program created by real estate guru, Cody Sperber, who says this is the “fastest way to launch, grow, and scale your real estate investing business.”

Cody Sperber has been called one of the nation’s leading real estate investors and educators, who is known as “The Clever Investor,” because he
famously went from someone with nothing to being a millionaire.
Sperber is also the man behind the Real Estate Millionaire Mindset, another real estate investment program that described the same principles he used to make his initial wealth within the real estate industry.


In general, the main theory of all of Sperber’s programs is that anybody can be extremely wealthy. Usually, the biggest obstacle people encounter is their mindset; successfully changing your mindset will eventually lead to monetary success.

Currently, the Fast Track Profit System hasn’t been officially launched. Right now, Sperber’s goal is to get as many people to sign up for his email list as possible, with the promise that they will be the first alerted about this program’s launch.


According to Fast Track Profit System, the principles that you will learn through this program are the same as ones that Sperber has used to make “hundreds of deals and millions of dollars in profits.”
If you are new to real estate investing and would like to begin learning some of these techniques before the launch of the Fast Track Profit System, Sperber has many other resources you can use in the meantime.

You can watch his series of webinars called How to Get on the Fast Track to Real Estate Success, hosted with TV’s Shark Tank host Barbara Corcoran. Also, don’t forget to sign up for personal coaching with his original website.

2. Real Estate Investors and wholesalers

Real Estate Investors and wholesalers
Real Estate Investors and wholesalers

The search engine birddogbot.com is for wholesale real estate investors. It helps you find the best real estate deals faster than any other platform. At the time of writing this article, Birddogbot has analyzed over 31 million properties and helped real estate investors to find nearly 1.8 million properties.
Birddogbot is for real estate investors looking for a faster way to search out deals and save time. Finding deals in real estate investment is a daunting process. But with Birddogbot software, you can save a lot of time as the software does the hard work of finding deals for you. This allows you to spend more time visiting and compromising the deals instead.
Here is a brief look at Birddogbot’s features and how it will profit you as a property investor:

• Finds the best real estate deals in your chosen location
• Targets the deals you want using city, state, or zip or postcode and country.
• Birddogbot monitors the classified ads and analyzes the properties.
• An automated real estate deal finding solution. Set it once and forget it. There’s no need to login once set.
• Birddogbot will find complete property history.
• Birddogbot sets your criteria “custom deal criteria”.
• Mobile-friendly interface
• Let’s you build a buyers list that is available in the investor Edition.


Birddogbot is an expert software program for property investors. It saves a lot of time and helps you find good deals. Birddogbot is also a good investment if you’re looking to begin investing in properties.
If you plan to invest in multiple properties, it will be better for you to invest in the premium Birddogbot package.
Birddogbot is like having your very own property-specific search engine as it can be customized to your investment criteria.

3. Done Deal real estate investor websites:

Done Deal real estate investor websites
Done Deal real estate investor websites


It is a super-easy solution to get an investor website. Done Deal Website offers websites to real estate investors with the following attributes:

  • Motivated sellers
  • Wholesale buyers
  • Rent-to-own buyers
  • Commercial
  • Land
  • Property listings.

Get everything for less than the cost of 1 site!
When joining real estate, you’ll have two choices: being a real estate investor or a house flipper.

Let’s talk about what both of these do:

  • House Flipper:

Let’s begin with the house flipper. As a house flipper, you locate a damaged property that you believe you can sell at high profits after repairing it. Let’s say; you purchase it from a motivated seller for just $75,000, a great deal! Now, you spend $20,000 in maintenance. So, you bought the property for $75,000, put $20,000 into the modernization and you have about $5000 in holding and closing costs. Your total investment is $100,000. You put it up for sale and manage to sell the property in a couple of months for $120,000, leaving you with a net profit of $20,000.

Congratulations you added value to the property and made a handsome profit as a house flipper.

  • Real Estate Investor:

Being a real estate investor is pretty much same as being the house flipper. The primary difference is that a house flipper is self-employed, while a real estate investor is financially independent.

As an investor, you can have an average 40 unit apartment complex or 20 single-family homes, netting about $4,000 per month, if run effectively.

As a house flipper, you fix up and sell a house profiting $20,000. Do you know how long does it take to spend that money? Not very long at all. Dealing is not investing. It is earned income, so it is taxed differently. After taxes, you are left with a mere $12,000.

Now if your monthly spending is, say, $4000, how long will it take to spend that $12,000? Just three months.

To get another $20,000, what do you have to do? You must go out and find another house and do it all over again. The effort is just too much!

Now let’s look at the investor with the 20 rent houses and $4,000 a month profit. If every month those 20 rent houses hand the investor $4,000, when does the investor have to go back to work? They don’t.

This is the difference between financial independence and self-employment. A dealer or house flipper is just self-employed. He or she is constantly working on getting that next house and getting that next quick fix.

These are some other alternatives of Fundrise:

Realty Mogul:

Realty Mogul is one of the authentic real estate crowdfunding platforms. It was founded in 2012. Over $250 million has been invested on the website, and $55 million has been paid out to investors. Real estate agents and real estate firms can get sponsorship in the form of commercial lending and venture capital through this platform. Investors can either invest directly into individual properties or use their REIT investing options. If you invest directly in a property, it’s called a private placement, and you must be an accredited investor. 

In terms of REIT (Real Estate Investment Trust), Realty Mogul is close to Fundrise. Their MogulREIT is very similar to Fundrise’s REIT. The REIT is open to both authorized and non-authorized investors with a minimum investment amount of $1,000. The funds are then combined and invested in a variety of property types, including self-storage, market, office, multi-family, and much more.

Realty Shares:

Realty Shares is another major player in this industry. It allows you to invest in real estate online or get sponsored for a real estate investment property group. Currently, over 550 projects have been funded on the platform, and more than $59 million of the principle has been returned to investors.

You must be an authorized investor to participate on the platform and take advantage of the various deals. Thus far, a total of over $300 million has been invested on the platform.

As a real estate developer or manager, you can also get sponsorship for residential and commercial real estate on this platform. If you’re looking to fund your property fast with hard money, this website is a great place for that! You can use the sponsorship for a fix-and-flip. Fix-and-flip loans are used by short-term real estate investors to purchase and modernize a property before flipping it for a profit. The most popular type of fix-and-flip loan is hard money loans.

Patch of Land:

This website has funded more than $219,964,192 worth of loans and has returned $61,192,174 to investors.

From the investor’s perspective, Patch of Land focuses on debt opportunities, where you can gain access to short-term notes ranging from 30 days to 36 months. You choose from a variety of loan types, such as residential fix and flip, ground-up construction, commercial, and much more.

The platform itself pre-funds all their deals and requires a $5,000 minimum investment on the part of the various participants.

You can also use the marketplace to get financing for a real estate project. The site announces funding in as little as seven days and short term rates as low as 7.99%. You can borrow from between $100k and $5 million.

PeerStreet:

PeerStreet is another excellent alternative to Fundrise because it also entertains some of the conventional investors in the listeners. If you’re not amicable (don’t think the word ‘amicable’ fits here), this site allows you to create your portfolio of real estate loan investments.

Till now, PeerStreet has funded over $180 million in loan investments and returned more than $60 million to investors. You must be an authorized investor to participate in their marketplace.

There are so many platforms to participate in the real estate crowdfunding. You can choose any platform that suits you well.

Chapter 4:

What is the Cap Rate? How to Calculate the Cap Rate for the Real Estate?

What is the Cap Rate
What is the Cap Rate

Cap rate definition:

Cap rate, also known as capitalization rate, is an essential concept in the real estate industry. Cap rate is the ratio of Net Operating Income (NOI) to property recommendation value. For example, if a property recently sold for $1,000,000 had an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%.

Cap rate formula:

Cap rate= NOI/property value

The NOI (net operating income) is the annual income generated by the property and is arrived at by withdrawing all the payments sustained for managing the property. These payments include the cost paid towards the regular maintenance of the facility as well as the property taxes.

The property value of the benefit is the present-day value of the property as per the persuading market rates.

What is a good cap rate?

The good cap rate depends on how you are using the cap rate. For example, if you are selling a property, then a lower cap rate is good because it means the value of your property will be higher. On the other side, if you are buying a property, then a higher cap rate is good because it means your primary investment will be lower.

After all cap rates are based on the projected estimates of the future income, they are subject to great contradiction. At this point, it becomes important to understand what authorizes a good cap rate for an investment property.

The rate also indicates the duration of time it will take to recover the invested amount in a property. For instance, a property having a cap rate of 10% will take around ten years for retaking the investment.

While cap rates are useful for the quick rear end of the encase calculations, it is important to note when cap rates should not be used. When properly applied to a maintained Net Operating Income (NOI) projection, the simple cap rate can produce a quotation approximately equal to what could be generated using a more complex discounted cash flow (DCF) analysis. However, if the property’s net operating income flow is complicated and unreliable, with considerable variations in cash flow, only a full discounted cash flow analysis will yield a dependable and reliable quotation.

What is a Rental Property?

What is a Rental Property
What is a Rental Property

A property from which the owner receives payment from the householders, known as tenants (occupant), in return for occupying or using the property. Rental properties may be either residential or commercial. The owner of rental property may be allowed to take certain tax deductions such as contract interest and reduction.

Advantages of rental real estate:

The biggest benefit of owning a rental property is that the renters will provide you with a direct income flow. Those monthly rent checks go straight into your business account, ideally more than neutralizing any expenses for the month.

Focusing on the rental property seems like a no brainer if your goal is long-term or even generational wealth.

However, rental property investment requires serious investment capital and one way to generate that would be by fixing and flipping houses. Therefore, a combination approach seems to be the ideal solution, at least in the short term. Plus we learned that some properties just lend themselves more to one approach than the other so this combination approach may even be a wise long-term strategy.

To grow your rental property, you need to generate cash, and house flipping can be how you do that.

Summary:

Real estate Fundrise offers a road for average investors to put on their private assets and investments into big projects. These investors become a part of that project and earn a lot of profit in the form of fundraising. Different investors adopt different methods for this fundraising policy like crowdfunding, one of the most used methods. It is a good way to start one’s business when he/she has no experience or investments to put on.

This method allows small-town investors to invest in big projects without requiring any experience or credits. Indeed, this method is way more comfortable and quicker to make their investments to higher ranks. It provides easy access to all the verified investors across the world using different online platforms.

In case, one can’t get access to fundraising sites online; there are many other alternatives they can go for like Realty Mogul, Realty Shares, and Peer Street websites where they can create their portfolios.

Fundraising investors and wholesalers can manage their sales or properties online in donedealwebsite.com where they can either sell any property or purchase it. To join this site, real estate investors must be motivated sellers, wholesale buyers, rent-to-own buyers, commercial land buyers, and must be familiar with property listings. They can manage the capitalization rate of the property here. On the whole, crowdfunded deals are accessed entirely online, and administrative costs are lower than in banks or any other traditional contributors. This enables the platforms to pass along potential savings to investors, borrowers, and sponsors.

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