The good news for average real estate investors today is that thanks to changes in regulation by the SEC, individuals with only a small amount of capital to invest can now participate directly in million-dollar deals — even multi-million dollar deals — that were once available only to financial institutions and the very wealthy.
But the tremendous success of real estate crowdinvesting has brought out a vast crop of new platforms in recent years. With so many companies vying for attention and investors’ money, how can you determine which platform is the right one to protect and grow your investment?
There is a common misconception in the Black community that real estate investing requires property ownership and large amounts of upfront capital. It’s understandable to presume that the only way to invest in real estate is through direct property ownership. But in truth, there are many real estate investment opportunities that don’t involve property ownership, offering lucrative, steady cash flows and far less maintenance from an investor.
With these options, investors can reap the rewards of rent from the property’s tenants, benefit from the real estate’s appreciation, and take comfort in their portfolio’s diversification into an alternative, but tested asset class, all without the ongoing responsibilities of building maintenance, landlording, and other obligations of property owners.
Introduction to Redlining
Redlining, is an unethical and discriminatory practice that was committed by banks and other financial service providers (e.g., mortgage companies and insurance companies). These businesses either make it impossible or nearly impossible for people living in low-income neighborhoods in the 'inner city' to obtain a home loan, mortgage or other financial product because of a “perceived” high default rate in the neighborhood. The practice is called 'redlining' because in the past some of these financial institutions would literally draw a red line on a map demarcating neighborhoods where they would not provide services.
Locavesting For Urban Community Development
A revolution in early stage finance is changing the way inner-city African-American communities relate to capital formation, real estate development, entrepreneurship, and job creation. Thanks to the passage of the JOBS Act of 2012, a new market is being born that will revolutionize how early-stage investing and community economic development works -- It's called Crowd Investing. Bill Huston
BuyTheBlock.com is your crowd investing portal registered with SEC and FINRA. We are genuine and officially recognized by the regulators of this industry.
The dream of BuyTheBlock.com is here. Thanks to President Obama for passing the Jobs Act more people can now venture into real estate business, rents will become cheaper, cost of purchasing the property will also come down, and shelter will become more affordable, it will cease to be the privilege of the rich.
I came across an article in the Louisville Defender, the local Black newspaper in Louisville that shed a very positive light on a Nielsen report holding Black women as shining examples of people that have embraced the American Dream. As I research more about this report I found that it was released to much fanfare at a Washington DC event featuring Congresswoman Maxine Waters and the Congressional Black Caucus Foundation.
The study finds that black women have enjoyed steady growth in population, incomes, and educational attainment. Black female entrepreneurs have grown by 67% between 2007 and 2012. That equates to more than 1.5 million businesses with over $42 billion in sales. Black women are flourishing in education as well. Sixty-four percent of high school graduates are going straight to college, while 23% over age 25 have a bachelor’s degree or higher.
I remember a friend introducing me to Black Enterprise magazine in 1984 at that time I was a soldier stationed in San Francisco. As a kid from a working-class family in the Cincinnati area, this was a game changer for me and the way I was to view the world moving forward. I was introduced to the BE 100 and proudly read about the Black Titans of Industry and as I dug deeper into the stories one of the recurring threads was a lack of access to capital. Let’s fast forward to 2011 and my son and I have started a digital marketing company that focuses on small businesses in the wake of the “Great Recession”. My son is involved in a Louisville Metro run program called Community Action Partnership (CAP) that is focused on growing disadvantaged micro-enterprises.
So, you finally decided you want to enter the property group investing world, but you aren’t sure what type of resources are worth your time? We created some critical things to focus on, a list with some of the best types of properties you should pursue when you engage in real estate crowd investing!
If you want to be one step in front of your competition, you need to know what the next big thing will be or at least figure out how you can use it to turn the tides to your advantage. That’s where Real Estate Crowdinvesting comes into play.
Real estate professionals know that investing in an excellent property can give a resounding return on investment in time. The only problem comes when you don’t have enough money to make such investments. Unfortunately, if such a thing happens, you will have to wait until you accumulate the finances needed for such an acquisition.
So, you either have to wait for a long time, or you just need to go to the bank and deal with loans, something that’s not exactly a good idea. Beginning investors had to do this all the time and, as you can imagine, things like this don’t go well all the time. But it’s still clear that you can gain some amazing results with the right approach. That’s why the next big thing in the Real Estate world is Crowdinvesting! The reason is rather simple, with help from other people that also want to invest money in large properties, you get to make a name for yourself, and the value can be incredibly rewarding.
In recent times, financing business through crowdfunding has become very popular in all sectors of our economy. The talk about the term crowdfunding is no longer news; it means the collective efforts of individuals with a common interest to fund a venture organized by another entity, either an organization or an individual. This concept of crowdfunding has been in practice in areas such as relief operations after calamities, political campaigns, and scientific research among many others.
Today, the idea of crowdfunding has found its way into the business of real estate. The concept is all about, a company acquiring the funds they need by bringing in many investors to purchase small amounts of equity. This method of Real-Estate Investing has gained much attention from all and sundry that the Jumpstart Our Business Startups (JOBS) Act. With this regulation, Buy The Block is allowed to solicit funding from unaccredited investors to purchase their stocks in real estate!
In order to develop cities all over the globe and accommodate more people, we need to put the power in front of regular people and not investors. Many billionaire investors have the resources and manpower to pull off amazing construction projects, but that doesn’t necessarily mean they should own those cities. There is another solution, and CrowdInvesting seems to be the answer here.
Instead of letting the major investors do the job here and invest massive amounts of money in this, a much better idea is to talk with the local communities. There are a lot of people that want to buy back the block they live in and who want to maybe move to a new city. Or there are plenty of smaller investors that do have some money to invest in new residential projects and urban cities, but nowhere near enough to solve the problems that might appear. And this is where CrowdInvesting can help.
By getting funds from people all over that region and maybe even from other places all over the world, CrowdInvesting allows regular investors or newcomers to the industry to get the job done and generate the cash flow needed for larger projects.
Real estate crowdfunding, also known as CrowdInvesting, is generating a massive amount of money for a broad range of residential properties all over the country. Simply put, regular people that want to become real estate investors need to use a dedicated platform like Buy the Block, and they can buy back the block in their local area if they so desire. What kind of impact do you get from CrowdInvesting? Is this indeed a breakthrough in the real estate world or is it just a phase that will most likely be forgotten sooner rather than later?
Americans have stashed the majority of their investment dollars in the stock market over the years. But there may be a new trend on the horizon. In 2007, nearly two-thirds of Americans were investing in the stock market; last year, just over half did. A new generation of investors may be turning to real estate instead.