Why Not Crowdfunding? Because You Can Do Better

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There are better options

You can put your money in a lot of places. Don’t place it in a crowdfund!

Ok we are not saying crowdfunding is NEVER the way to go. More so that crowdfunding is risker than you think. Better to place that risk in your own flips, where you have more control. Here are some reasons why we think so.

You Will Pay Fees

Directly or indirectly, you will pay fees…and they will not be cheap. The platform or program offering the crowdfunding service needs to get paid, and they make sure of it. Management firms and developers earn their cut through fees. House flipping, however, places you in charge with no middle man to go through.

Impossible Due Diligence

People typically join crowdfunding programs because they are not real estate experts. Though they will usually give a risk rating, how are you to evaluate that risk if you do not know how? And even if you are a real expert, you still will not be able to make strategic decision unless you’re are active in that market.

It would be to your advantage to mitigate that risk by working locally in a market you know either yourself or hiring a local real estate agent. Real estate is local, so you will win by working in the market you know. Enter house flipping: you create your talented team, you pick the properties, and with a local real estate agent you can gauge the value of the property now and in the long term.

Be with NFC

Forget the middleman,
focus on your deal