How does crowdfunding work in real estate? I get this question
all the time. "Noelle, I heard you got rich crowdfunding real estate?"
And well, that's kind of true. But I was already rich before I
ever had a real estate crowdfund. So, I know a lot about real estate investing
and crowdfunding real estate. And I can tell you
all about it. That's what we're going to do step by step so you can do it too.
Let's go.
What is crowdfunding real estate? Crowdfunding in real estate is where you
have a platform. Literally they've created now platforms
where people can put money into a fund. The fund has been
vetted the person who's running the fund. For example, I have a fund. I'll give you
a little bit more about that a little bit later.
But I will tell you they vet the person that is creating the fund make sure that
they have all of their requirements they've gone through a CPA,
they've you know gone through a criminal
background check. They are not a felon. They know what they're doing. They
have the expertise to actually carry out what they're saying they're going to do.
And people can invest in that just
unaccredited investors. So, there's websites like trucrowd.
There's websites like Start Engine and there's a few other crowdfunding
websites that people could go to and create their own crowdfund for real
estate. Now, when we say for real estate though,
because you could crowdfund anything. You could say, "I want to get a new apartment
for myself" and just ask people to give you money almost like donations.
That's not what we're talking about here. I'm not just talking about asking people
and begging for money to help you get some new DJ equipment.
What we do with a real estate crowd fund and the purpose of a real estate crowd
fund is to buy income-producing real estate
or to acquire income-producing real estate and then
split the profits from that real estate with the investors.
And that is all real estate crowd funding is, is just taking the power of
small people who wouldn't be able to buy a property with only a thousand dollars
or $1500, they wouldn't get anywhere. We put all of
that money together into a big pool of money now we have tens of
hundreds of thousands of dollars and now we can buy lots of properties
and split the profits with each other and really do something.
That is the power behind a crowd fund. Let's talk about
how we get it. So, how you do a real estate crowd fund? Again It's
very simple. You basically need to come up with your entire
idea. What is it that you're going to do with the real estate and how are you
going to make profits and then how are you going to distribute
those profits to your investors? Those are the main things that you need
to figure out or look at if you are going to invest in a
crowdfund. Now again, crowdfunds are awesome. This is probably the biggest
best kept secret in real estate right now. Just because most people do
not know that it's better than private money. Instead of just asking your
friends or your family or your co-workers
for money and going and pitching to them one by one by one,
if you have a crowd fund, it's very easy to raise a lot of money
very quickly. Get some income producing properties
start distributing those profits to your investors
and they will either find more investors for you or
invest more money so that the fund just grows and grows
and you can get more and more properties. I know you guys have seen a few others
if you're really into real estate. There's only about 2
other major crowd funds out there. One of them again i usually don't like saying
people's name but one is Grant Cardone and the other one is Jay Morrison. I have
nothing negative to say about either of their crowd funds. I don't say negative
things about people... You know, what they're doing. If that is
something that you're interested in, please go ahead and check those guys out.
However, I have looked into some of them and I do realize that people need a lot
more money to start investing with some of those
crowd funds and that's probably the biggest
challenge additionally because they have been around so long and they're so big
now. The returns are much much smaller. So
again, nothing negative. It's a very good thing
to do. But you want to make sure that you are getting
enough money back for the money that you put in. You know, I don't want to put you
have you put in $500 you only get one dollar every year.
Or you put in 5,000 and you end up with 10 bucks
every year. So, you really want to make sure that your return on investment
is really good because crowdfunding is an amazing way for people to come
together and get a lot more properties and do things
a lot bigger. So, as promised, I told you I would give you the big secret. So,
I literally did not start in real estate investing with crowd funds.
I started real estate investing by doing some wholesaling
then i went to fix and flipping and then I went to having rental properties.
And I kind of had to do some of this stuff all on my own or
find you know some doctors some lawyers people that were kind of dabbling in
real estate investing but didn't necessarily have the time to
do it full time. And then once i quit my job, I had all
the time and I was able to do tons and tons of deals
and make way more money. And so, it was awesome opportunity. Again,
that's why I said, I already was rich before I ever got a crowd fund.
But I wanted to share with you what inspired me to do it and how you can do
it too. And this is something i should have done
years ago. So, when I first quit my job, like I said, with my rental properties,
I have replaced my 6 figure income and I was floating
on cloud 9. You could not tell me anything. I had replaced my six-figure
job, I have my time, I'm with my kids, I'm with my husband. I did what i wanted to
do. And so, I started teaching people kind of
what I was doing partnering with my students and just again growing my
business like that. But I was realizing that some of my
students still needed to partner with me all the time. And so, as my
program grew and I got more and more students, it got very difficult to do all
of the deals that my students were bringing to me. And then I had to kind of
pick and choose which ones I had available time or efforts to do or my
team to do. But the crowd fund changed all of that.
So, my students, they still do their own properties but they also have created
another stream of revenue just by bringing us properties to
NUUREZ, okay? So, with Nuurez, the company that we created,
it's a crowd fund. We have people put in a minimum of
$500. Super simple. And we split the profits with our
investors 60%. They get 60%, we keep 40
and we rent the properties out on a nightly basis.
So, we're making 2 to 3 times what most people make on a rental property,
okay? So again, check this out if you have a
chance because we're making way more than those other funds that I mentioned.
Because of what we do with the properties, okay? So, because we rent them
out on a nightly basis, instead of a monthly basis, we actually
make 2 to 3 times more per property per unit than our
competitors do. So, we have way more profits and we split
our profits at a bigger percentage than those other
guys do. So, we are just trying to make sure that my students,
they have the full opportunity to invest in real estate,
make the most money doing it and learn while they're doing it
while still having their own property. So, it's just another stream of income.
Additionally. True story: We've created multiple streams of income within the
crowd fund. So, if you bring us properties to the
crowdfund, we pay you a fee for that. If you find other investors for the
crowdfund, we pay you for that as well marketing fees.
So, we've set up all these streams of revenue to grow our business and we've
raised so much money so quickly. I have more money than I've ever had in
my life cash flow wise just because we have so many people
giving a small amount. So, this is the power of crowdfunding and
this is why this is the biggest kept secret in real estate.
We've been able to get so many properties and so much profits
so much easier just with people putting a smaller amount
in and we using our expertise, our resources and everything that we have to
our discretion to make more money on the
properties so you can do the exact same thing.
And I'm just going to give you one last bonus tip before I end this because i
just shared so much information. Hopefully you are really getting and
understanding how crowd funding and real estate
actually works because it's amazing, okay? But the key to it in a true crowd fund
must have gone through the securities and
exchange commission, okay? I implore you do not invest necessarily in someone
or something that has not been vetted or that is with someone that has a criminal
background or they have their background has not been checked.
I got a letter um anonymously, okay? This is me sharing an anonymous letter
from one of the people that I was going to partner with. And this person had a
very lengthy criminal background as well as
some of the other people that i was coming in contact with.
And they were not able to get a crowdfund. And that is really probably a
good thing. You do not want someone with all these
felonies or someone that has scammed other people
or coached people and then they got no results and all this stuff. You
don't want those people to be able to just take
money from everybody. Unaccredited people, people that
are just working class and take all of their money and never
buy the real estate with it. You want to make sure that the money
that you are investing goes to real estate so that
you actually can get some properties and there's actually some assets
in what you've invested in. Because that's also going to increase the value
of the company. Hopefully you're watching this before we
take in the company public because anyone that is invested, if you take a
company public, those initial investors usually make the
most money. If you think about people that are invested in
amazon early on or Microsoft early on or Airbnb
early on, just think about how much money they made.
And that's the same opportunity that has been created with crowdfunds
like Nuurez and others that have been created or ones that you can create
that truly are tied to real assets. Okay. So, please take a moment to go ahead
and like this video, please subscribe to this channel. Make sure you click that
little notification bell so you do not miss any of this content that i am
bringing you every single day right here for free.
Every weekday, 5 days a week so you have all the tools, all the knowledge and
all the information that you need to be successful.
Go ahead also and check out Nuurez when you get a chance or trucrowd
to check out all of the information with the memorandum and everything that has
been vetted through the security and exchange commission.
This is Noelle. To your success.