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So I saw this house yesterday being remodeled, and adding a garage in the back. However, what really stuck out was the sign out front proclaiming this renovation was done through crowdfunding ...... immediate 
..... this is the firm www.dctcapitalfund.com.
(Worth reading this company's FAQ to get an idea how it works)
This type of crowdfunding is very very new.....a 2nd annual conference is being held in California this year with a particular group...http://www.imn.org/conference/Crowdfunding-Real-Estate-CA/Home.htBeen doing a little bit of research and more to go....
Why you may be interested: Can invest in several properties, less money per property you need to invest, other incentives, etc. Ideas to start your own.
Lists of Real Estate Crowdfunding Platforms In the USA
http://crowdfundbeat.com/2015/02/06/lists-of-real-estate-crowdfunding-platforms-in-the-usa/
Thoughts???
..... this is the firm www.dctcapitalfund.com.http://dctcapitalfund.com/faq/
- How does D C T Capital Fund work?
D C T Capital Fund is a collection of investors, otherwise known as crowdfunding, for real estate, a marketplace for accredited investors to pool money online and buy shares of pre-screened real estate investments. D C T Capital Fund facilitates a way for accredited investors to invest in real estate opportunities of your choice online through a secure website. Each investor is able to can invest at their personal comfort level for each property. Crowdfunding minimizes the liability each investor has to invest while still being able to enjoy the range of investment possibilities. Investors can browse investments, review legal documents and due diligence materials and sign legal documents securely online. Investors also have access to an investor dashboard, giving 24/7 access to watch how your money is working for you.
- What types of investments does D C T Capital Fund offer?
1) real estate loans, and Cash-flowing equity investments.
2) At D C T Capital Fund, we focus on equity investments with existing cash-flow, like apartment buildings, office buildings, retail shopping centers, self-storage facilities and pools of single family homes. In this investment, investors pool their money to purchase a piece of a specific property or a pool of properties. The investment is acquired and managed by a professional real estate company. Investors are entitled to a share of the cash-flow from rents as well as a share of the proceeds when the property is eventually sold. The average hold for an investment like this is 3-7 years.
3) The other investment opportunity available on D C T Capital Fund is loans. In this investment, investors pool their money to buy a specific loan or a pool of loans. The loan is tied to a residential or commercial property and is secured by the property until the borrower repays the loan in full. Investors earn monthly interest on their money typically with a balloon payment at the end. The duration of the loans could be as short as a few months and as long as a few years.
- How is it different than a Real Estate Investment Trust (REIT)?
Typically, when investing in a REIT, investors have little to no information regarding actual properties the REIT invests in and cannot invest in their own backyard. D C T Capital Fund allows investors to invest in individual properties giving added transparency and control over investment selection and location. In addition, REITs are such large entities that they can rarely participate in many of the smaller investments D C T Capital Fund will be including in the marketplace such as smaller retail centers and multi-family buildings.
- How does an investment get listed on D C T Capital Fund ?
Companies request permission to list their investment opportunities by joining D C T Capital Fund as a private real estate company and submitting an application. For equity investments, the D C T Capital Fund team along with our broker-dealer partner, Baylor Asset Management, reviews their materials and determines whether the company and the investment is a good fit for our members..
- When posting loans on the platform, what criteria does D C T Capital Fund look for?
D C T Capital Fund provides loans secured by residential and commercial properties. The majority of these loans are rehabilitation loans. A private real estate investment company will acquire the property to renovate and resell it. We like to leave enough equity in the property to ensure higher returns to our investors. Generally, our criteria is as follows:- * The loan to purchase prices is less than 80%
- * The loan to cost (including the budget for the rehabilitation) is less than 70%
- * The estimated loan to after repair value (once the property is sold) is less than 65%
- When posting equity transactions on the platform, what criteria does D C T Capital Fund look for?
We look for transactions to provide cash flow to investors as quickly as possible. Some properties may have some level of vacancy or have the ability for our operating partner to add value and increase cash flow over the life of the investment. We do not currently fund ground up development projects typically because it take 18-36 months to generate income.
- What does D C T Capital Fund do to offer the investments?
For equity investments, we and our broker-dealer partner, Baylor Asset Management, review every transaction in-house. We scrutinize the variables of each transaction including the property, the structure, the market statistics, the quality of the property and the track record, reputation and quality of the real estate investment company we are working with. This extensive process includes background, criminal and credit checks to minimize the risk of fraud. While D C T Capital Fund cannot provide an assurance to investors that investment objectives of any given investment will be reached, only a small percentage (we estimate less than 5%) of investments we review will be included in the D C T Capital Fund marketplace.
- What are the benefits of using D C T Capital Fund?
D C T Capital Fund makes it easy for accredited investors to invest in real estate. We provide access that was historically limited and pre-vet every investment in the marketplace. We spend countless hours sourcing real estate investments so you don’t have to. We also allow you to invest in real estate with dramatically smaller check sizes. Instead of $50,000 or $100,000 minimums, you can buy shares of investments with as little as $5,000. And we make the process painless – allowing you to screen investments online, sign legal documents online and have access to all your documents in one place on your investor dashboard.
- Is the D C T Capital Fund website secure?
Yes. We do our due diligence to ensure the security of all of our members and our data and use SSL. SSL (Secure Sockets Layer) is the standard security technology for establishing an encrypted link between a web server and a browser. This link ensures that all data passed between the web server and browsers remain private and integral. SSL is an industry standard and is used by millions of websites in the protection of their online transactions with their clients.
- Are the investments secure?
No investment is guaranteed. However, one benefit of investing with D C T Capital Fund is that you are investing in physical assets. Your investment is in an actual property as opposed to a stock or bond or other non-physical asset.
- What types of property can I invest in?
There are numerous options available, including single-family homes, apartment buildings, self-storage units, mobile home parks, offices and retail shopping centers. Additional types of real estate investments, please email us at help@DCTCapitalFund.com
- When I invest in equity investments on D C T Capital Fund, what do I own?
Your investment in an equity opportunity with D C T Capital Fund, allows you to purchase shares of an LLC as a limited member. In turn, that LLC owns a share of a specific investment property, like a specific apartment building, for example. An LLC gives you liability protection, shielding your personal assets from the investment.
- Who makes decisions in an LLC?
Decisions in an LLC are governed by a document called an “operating agreement”. Every operating agreement is varies, the agreement usually includes a manager (who may also be a member) and limited members. The manager typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The manager can determine how much cash to distribute to the limited members versus how much to hold in reserve and assess possible sales for the property. There are certain activities that might mandate a vote by the limited members and the limited members can typically take action if the managing member defaults on the terms of the agreement or is grossly negligent.
- If I invest with D C T Capital Fund and something happens to D C T Capital Fund, what will happen to my investment?
For equity investments, D C T Capital Fund operates LLCs that could be managed by a fund manager. D C T Capital Fund would appoint an agent, such as a national bank or trust company, to manage the LLCs in the event D C T Capital Fund is unable to manage them. For loan investments, D C T Capital Fund could be replaced by a loan servicing company. D C T Capital Fund would appoint such a company to manage the loan investments in the event D C T Capital Fund is unable to manage them.
- Are there fees for investors?
Joining D C T Capital Fund and browsing the investment properties are free. However, when you chose to invest, there is an investment fee with each property. The fees depend on the type of investment (loan purchase or equity purchase) and the nature of the transaction. In addition to administrative and legal expenses, the fees will cover the ongoing reporting and communications for the investments.
- When will I get my investment back?
D C T Capital Fund real estate investments are private transactions in physical properties. Different properties have different expected “hold periods”. A hold period is the anticipated time investors will be involved with the investment until it is re-sold or the loan is paid off, and range from less than 6 months to greater than 5 years. It is important to read the investor documents for a deeper understanding of the hold period for each investment. As an investor, you will receive a return on your investment when the company distributes money. Money is typically distributed on two occasions:
1) investors receive their share of the profits (as an equity investor) or their agreed upon interest (as a loan investor) or
2) the property is sold.
- Are these investments risky?
Yes. The real estate market has economic cycles and it is difficult to know how and when the economy will change. We attempt to educate you as an investor specifically to what we do. We encourage that you seek professional financial advice if you have detailed questions.
- Why is it only for accredited investors?
Federal securities law requires that securities issued by private companies to their investors must be registered with the Securities and Exchange Commission (SEC) unless the offering qualifies for an exemption from registration. One exemption from registration is available if the company offers securities only to accredited investors in a private offering. Accredited Investors are defined by the SEC as having $200,000 of annual income per individual ($300,000 per couple) with the expectation of that continuing, or a net worth of more than $1 million, excluding the value of the primary residence. D C T Capital Fund is a private, password-protected network for accredited investors in order to meet these guidelines.
- How does the investment process work?
Your investment is not final until the investment target is met, all of your legal documents are signed and funding has been contributed. When you make your investment, the money is held securely at a Chase Bank. Once the investment target is met, the money is transferred for the sole purpose of the specific loan or specific property you are investing in. If the minimum is not met, 100% of your investment monies are returned directly to you.
- How will I be updated about my investment?
D C T Capital Fund will work with the real estate company to ensure timely updates are shared with all investors quarterly. Updates will be provided via email and via your investor dashboard. In addition, you will receive tax documents every year that you have a distribution from a real estate investment in D C T Capital Fund.
- Is there an investment minimum?
Yes. The minimum investment varies and depends upon each investment, but can be as low as $5,000.
- What if more money is needed for the property?
D C T Capital Fund investments typically do not have capital calls. A capital call is where the investor is required to commit more money to the property, beyond the initial investment. Rather than requiring an additional investment, it is possible that investors will be diluted instead.
- What are the tax implications of investing with D C T Capital Fund?
While we cannot provide legal or tax advice and recommend you speak with your own accountant or attorney, one of the benefits of investing with D C T Capital Fund a Limited Liability Company (LLC) is that it can be taxed as a partnership and it allows for the entity to be “pass through”. For example, profits, losses and depreciation can be passed through to the investors, as applicable on equity investments.
This type of crowdfunding is very very new.....a 2nd annual conference is being held in California this year with a particular group...http://www.imn.org/conference/Crowdfunding-Real-Estate-CA/Home.htBeen doing a little bit of research and more to go....
Why you may be interested: Can invest in several properties, less money per property you need to invest, other incentives, etc. Ideas to start your own.
Lists of Real Estate Crowdfunding Platforms In the USA
http://crowdfundbeat.com/2015/02/06/lists-of-real-estate-crowdfunding-platforms-in-the-usa/
Thoughts???
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