With the rise of social media and networking apps, a new trend of investing in real estate with friends through apps has emerged. This innovative concept allows groups of friends to pool funds together to invest in property. By leveraging the power of social connections, these real estate apps aim to make real estate investment more accessible. In this article, we will explore some of the popular real estate apps that enable social investing and discuss the benefits and considerations of using such platforms.
Top apps facilitating social real estate investing
Some of the leading apps in this space include Roofstock, CrowdStreet, RealCrowd, and Fundrise. Each has its own unique features and offerings. For example, Roofstock enables friends to browse listed properties together, discuss investment strategies, and co-invest at low minimums. CrowdStreet focuses on institutional-grade commercial real estate and provides a social community for friends to share diligence and invest collectively. RealCrowd connects friends with pre-vetted real estate deals sponsored by experienced firms. And Fundrise allows friends to invest together into real estate funds and eREITs. The easy-to-use interfaces and built-in social tools of these apps make real estate investing with friends simple and engaging.
Benefits of social real estate investing apps
Investing in real estate with friends through social apps provides several advantages. Firstly, it lowers investment minimums by enabling friends to pool capital together, making real estate more accessible for those with limited funds. Secondly, friends can leverage each others’ skills, experiences and networks when evaluating potential investments. The combined diligence of a group is often superior to that of an individual. Thirdly, apps provide built-in tools for friends to communicate, share documents, and vote on investment decisions, streamlining the process. Fourthly, investing alongside friends adds a social motivation and enhances the experience. However, there are also risks involved with any real estate investment that need to be considered carefully.
Due diligence still vital when using real estate apps
While social real estate apps provide many benefits, proper due diligence is still required before investing. Friends should thoroughly evaluate the underlying assets, cashflow projections, market fundamentals, risk factors, and sponsor/property manager experience for each deal, regardless of how appealing the app makes it appear. It’s also prudent to diversify across multiple properties and markets to reduce risk. Furthermore, legal and tax implications must be examined. Real estate investing with friends can be rewarding but comprehensive due diligence remains essential.
In summary, real estate apps that facilitate social investing with friends are gaining popularity. When used properly, they can expand access to real estate, enable collective diligence, streamline processes and add a social motivation. However, prudent analysis of every deal is still required. For those new to real estate investing, exploring this emerging option with trusted friends on user-friendly apps could be an attractive entry point.