Leonard Baron, who has taught the MBA Real Estate Investment course at San Diego State, asks the question, “Is placing your hard-earned cash into a crowdfunding real estate deal a smart and safe way to invest your money?”
Good investors and developers with proven track records can get good bank financing and compete vigorously for projects.
There are some key things you should examine, such as:
1. An offering showing how much equity the sponsor has at risk in the project
2. An analysis of how this deal will
make money and how the project fits into the area.