Real Estate Crowdfunding For Non-Accredited Investors

The fourth quarter is now upon us. I can’t believe that we are in October. Can you?  

We have much to look forward – deciding a new U.S. President (which had me fired up on the debates last week), participating in holiday festivities, executing on smart tax strategies, following those stock company earnings (for us market junkies), and enjoying the last days of 2016.

 

Now, let’s also remember that the last three months also offer reflection on your 2016 money goals and whether or not you have taken action like we’ve discussed. If your money situation is creating some anxiety for you, you’re not alone as money issue can be stressful!

 

One way to reduce stress, and especially money stress, is to practice mindful meditation. As I learned during my recent travels, the Japanese have a strong meditation culture and I was re-inspired to incorporate it into my daily routine. And this year, new scientific evidence has shown that mindful meditation has positive physiological ramifications.

 

Don’t know how? All good - check out these mindfulness techniques. My favorite is taking time out to breathe.

 

I had to do some breathing before I participated on the Real Cap Chicago’s real estate crowdfunding panel last Thursday. I also want to share several takeaways: (Read more to find out how you can make money in real estate crowdfunding)

 

3 Takeaways on Real Estate Crowdfunding.

 

1.Real estate crowdfunding offers an alternative way to invest in real estate. One of the biggest hindrances to direct real estate investing is the amount of time you can spend in managing the property. If you do not want to invest in REITs or other equity-like real estate investments, crowdfunding offers another option. Real estate crowdfunding allows development companies to raise funds through online platforms for private real estate deals, which should generate a return for you. Think of Kickstarter solely focused on real estate.

 

2. Non-accredited investors will get more access to private real estate deals. Under the 2015 JOBS Act, non-accredited investors, are allowed to participate in crowdsourced deals. Here is a list of the major real estate crowdfunding sites. If you’re in Chicago, you could not miss the opening of Whole Foods in Engelwood last week. Of the $15MM raised as part of the deal, $500,000 was crowdsourced.

 

3. Education is key. If you’re considering a crowdsourced deal, it’s important that you do your homework. You should be able to articulate why your are making the investment, how the investment fits in your overall portfolio, what’s the investment opportunity in the deal, and who are the people behind the company that is developing the real estate. If you have a financial advisor, ask them these questions and what deals would they recommend.

 

If you’re not ready to crowdfund, it’s OK as the opportunity must be right for you. In the meanwhile, please continue to share your investing successes and failures with the community below – we’d love to hear from you.

The Impact of Japanese Culture and RealCap 2016

I am back from my vacation in Japan, and I have to be honest with you – it was tough to come back. My husband George and I truly enjoyed ourselves. This picture describes how I felt – FREE! (yup, that’s me and my crazy self.) Anata ni aitakatta! In Japanese, this means “I Missed You.”

But, our unplugging gave rise to lots of creative meanderings and the ability to just be present and take in the new experience. The market remained relatively calm for me while I was gone…whew! [Side note - When I use to work at JPMorgan stock picking, many of my vacations were high jacked by a few of my stocks blowing up. I do not miss those times!]

Whenever I go to a country for the first time, I am amazed by what I learn and absorb. And of course, I would be remiss if I did not share a little bit with you as it relates to journeying with you when it comes to taking it to the next level with your money.

You ready?

Well, I’ll share one major takeaway each week over the next few weeks.

The Japanese put the community first.

Whether I saw a person covering their face with a full-blown mask so that other people won’t get sick or someone on the street stopped to help us not look terribly lost, someone constantly worried about our well-being.

Ah ha moment – What if we took a community approach to our money matters? As Americans, we tend to keep our money talks to ourselves. Families who do transfer wealth between generations do talk more than the average, but it’s still a little taboo.

But what if we (and, I mean YOU as part of the Charisse Says community) got into a habit of sharing your successes and failures for the benefit of the community?

Challenge - Please share below an investing success or failure you’ve had over the last month or two – I know someone else can benefit. We have just a few more months in this Year of Action, so let me hear it.

Vacation also allowed me to get some good reads in. My book of pleasure was Re Jane, a coming of age book told from the Korean-American perspective. Key takeaway for you – when your family has the opportunity to pull together to make a sizable investment, the results might be favorable. We can often do more collectively than individually. Notice a common theme this week?

If You’re In Town

I’ll be a panelist at this year’s RealCap Chicago 2016 conference. RealCap is a national conference dedicated to educating leaders and newcomers, developers and investors alike on the expanding industry of real estate crowdfunding. In my panel, we are set to discuss “Finding and Accessing Capital,” and I’m pretty pumped up. You can get $100 off by using my promocode: CJ100.