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Real Estate Crowdfunding

Real Estate Crowdfunding: 2018 target $5,000 passive income

Passive Income: Real Estate Crowdfunding with RealtySharesI started investing in real estate crowdfunding with RealtyShares in 2017. My experience has been positive so far and my goal is to increase our investment to $100,000 this year. You can read more about how I got started with real estate crowdfunding here. There are also more details there about what type of investments you can make in real estate crowdfunding – debt, preferred equity, and joint venture equity.

At the end of 2017, we had $28,000 invested with RealtyShares so it will be tough to reach $100,000 this year. We can probably do it if we sell our rental properties. Otherwise, I don’t see it happening because we don’t have that much extra cash. I’ll try, though.

You can see all of our passive income over on the Passive Income page. I will update these passive income pages monthly.

2018 YTD real estate crowdfunding income = $0

RealtyShares

 

  • 2017 real estate crowdfunding income: $437
  • 2018 YTD real estate crowdfunding income: $0

Real estate projects I invested in

  1. A strip mall in Arizona ($8,000, 3 years holding.) Cash on cash returns about 7%. Target total ROI estimated at 16%. Payments have been on time so far.
  2. A fast food restaurant in Florida ($5,000, 1 year holding.) This one is a senior debt loan. Annual interest is 9.5%. Payments have been on time so far.
  3. An apartment in Texas ($5,000, 3 years holding.) Cash on cash returns about 10%. Target total ROI estimated at 16%. No payment from this one yet.
  4. An apartment in Arizona ($10,000, 5 years holding.) Cash on cash returns about  10%. Target total ROI estimated at 16%. No payment from this one yet.
  5. An apartment in North Carolina ($10,000, 4 years holding.) Cash on cash returns about 8%. Target total ROI estimated at 16%. This one is still WIP.

*Estimated ROI is just that, an estimate. There are risks with any investments including real estate. If you’re not comfortable with real estate crowdfunding, I recommend REITs. They are more established and also has good returns. We have some REITs in our dividend portfolio. I like investing in real estate more directly and the local market is getting too expensive for us. My plan is to sell our local rentals and invest more in real estate crowdfunding and stocks. I may look into local rentals again if the market drops.

Sign up with RealtyShares

RealtyShares has been excellent so far, but we need to stay invested to see if the income can be sustained over the long haul. One bad project can really derail our total ROI. I’ll have to be careful and pick the projects with good management.

You can sign up with RealtyShares to browse the various projects and see if real estate crowdfunding is a good match for you.

Disclosure: We may receive a referral fee if you sign up with a service through a link on this page.