- By VestMunity
- Posted June 22, 2016
This Is How Your VestMunity Investment Is Secured
If you are in need of a profitable investment opportunity that offers low risks, a potentially solid return on investment, plus security, a VestMunity-backed real estate project is a great option for investors in Florida. It’s well-known that the real estate market has been on a steady climb over the past several years, from the depths of the housing crash. Particularly in South Florida, where, according to the New York Times, “a wave of commercial and residential development in downtown Miami and its periphery is altering the city’s skyline. And in providing options for those less affluent than the condo dwellers by the water, it is challenging the long-held perception that Miami is not a place where a middle-class person can live well and raise a family.”
Because of this, many investors are becoming more and more interested in getting involved in residential and commercial real estate markets across the country, including the South Florida market. And many are turning to the crowd-funded real estate market, where loans and investments are following the general trend of real estate investments nationwide featuring higher returns than many other fixed-rate investments and a lower risk than the stock market.
But, with crowd-funded real estate being such a relatively new opportunity alternative for investors, we tend to receive a lot of questions from interested investors. One frequently asked question we receive is, how is my VestMunity investment secured? When you invest in a listing on VestMunity, you are actually investing in the underlying loan between VestMunity and one of our real estate developers. In return for your investment, you will receive a borrower payment dependent note from VestMunity.
Like any investment, a real estate investment is subject to the same economic cycles that affect all markets and industries. Sometimes, it’s difficult to know when economic conditions might change. So, we provide our investors with the utmost in transparency in regards to the developers and borrowers we work with and we encourage them to review all relevant materials associated with the deal in full. We do this by sharing documents, relevant data, and due diligence, to help you make the most informed decision possible. This allows us to keep the risk of loan defaults to a minimum. However, all loans have an inherent amount of risk. That is why we make sure to work closely with developers who are experienced, which also ensures that we keep the risk of loan defaults to a minimum.
With that being said, the developers we work with are extremely reputable with plenty of experience. Furthermore, our developer come from a variety of backgrounds, including the construction trades, real estate sales & rentals, property management, and other related industries. This gives VestMunity, and in turn our investors, access to unique knowledge and expertise in a given area.
The best part about investing in a VestMunity offering, you are also investing our entire community of investors by allowing us to find bigger and even more amazing real estate investments. Ultimately, we’ll be able to pass the results of this success right back to you as part of our community. View our current listings and invest in a VestMunity offering today!