Real estate has always been regarded as an equal-opportunity wealth creator. However, the caveat emptor: real estate historically has been full of scams. And, based on my experience managing distressed real estate funds, that’s the No. 1 reason smaller investors don’t invest and the final reason all real estate deals fail. It’s been close to six years since the first portion of U.S. equity crowdfunding laws went into effect in September of 2013. This means that the barrier to entry has never been lower for unsophisticated non-accredited investors to invest into deals they know little about.
Adding fuel to the desperation, the perpetually low interest rates that have existed for over a decade have acted as an implicit tax on savings. This means that most investors have been forced to take risk into unknown investment waters that are not as regulated as the public stock markets.
10 questions for real estate investors
Read entire article here in Forbes.com
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