Online real estate investing has experienced tremendous growth over the last several years as a way for individuals to access an untapped market. It also provides a means for developers to capture new sources of debt and equity funding.
Given the relative newness of this model, questions are bound to arise. We have addressed a few common myths below.
1. Projects that cannot get ‘traditional’ funding (i.e. lower quality projects) are showcased
NexusCrowd provides individual investors access to high quality and vetted real estate deals that are led by our institutional partners. Bottom line: NexusCrowd investors are never the only ones to invest – we always invest on the same terms with our partners and their investors who are high net worth clients, family offices and institutional investors.
Our priority is always our investors and NexusCrowd conducts an extensive and in-depth due diligence process on both our partners and their deals before listing them on our platform. Each of our partners has 30+ years of experience structuring and financing residential and commercial properties worth billions of dollars in Canada and globally. Learn more about our current partners.
2. There is no regulatory body governing these platforms
NexusCrowd is Canada’s first regulated online real estate platform. In other words, we went through an extensive end-to-end vetting process by securities regulators to be designated as an Exempt Market Dealer. Before choosing a platform, it’s important to do your homework to ensure the platform has a license and investor interests are being protected.
3. I am making an investment based on good faith and trust
NexusCrowd investors create a private online account where they have access to due diligence material for each opportunity. To ensure security and transparency, funds are tracked and documented and we only transfer investment funds upon completion of each transaction. If, for any reason, the transaction does not close, your investment amount will be fully refunded.
Once the investment is made, investors receive quarterly updates in their private online account and via email. The NexusCrowd team is always available in person or on the phone to answer questions or walk you through the process. Contact Us
4. No good developer would raise money using an online platform
While it is true that several large developers have a steady stream of funding, there are an equal number of very reputable developers who seek high quality and consistent alternative sources of capital.
NexusCrowd partners with developers and investors who fall into this ‘sweet spot’ by working with them to offer an alternate source of capital with little/no administrative hurdles. We are very selective about who we partner with and only collaborate with recognized developers and investors with strong knowledge, connections and a plan to mitigate unforeseen risks.
5. This method of investing is suitable for all investors with all risk profiles
No investment is risk free. However, NexusCrowd mitigates risk in a number of ways. These include selecting established and experienced partners to source and manage deals, thoroughly vetting each deal and not being the sole investor in any deal.
Finally, NexusCrowd follows a Know Your Client (KYC) process before any investment decision is made to determine individual investor suitability. If we determine that the inherent risk in an investment is not suitable for you, we will let you know.
Given the relative newness of this model, questions are bound to arise. We have addressed a few common myths below.
1. Projects that cannot get ‘traditional’ funding (i.e. lower quality projects) are showcased
NexusCrowd provides individual investors access to high quality and vetted real estate deals that are led by our institutional partners. Bottom line: NexusCrowd investors are never the only ones to invest – we always invest on the same terms with our partners and their investors who are high net worth clients, family offices and institutional investors.
Our priority is always our investors and NexusCrowd conducts an extensive and in-depth due diligence process on both our partners and their deals before listing them on our platform. Each of our partners has 30+ years of experience structuring and financing residential and commercial properties worth billions of dollars in Canada and globally. Learn more about our current partners.
2. There is no regulatory body governing these platforms
NexusCrowd is Canada’s first regulated online real estate platform. In other words, we went through an extensive end-to-end vetting process by securities regulators to be designated as an Exempt Market Dealer. Before choosing a platform, it’s important to do your homework to ensure the platform has a license and investor interests are being protected.
3. I am making an investment based on good faith and trust
NexusCrowd investors create a private online account where they have access to due diligence material for each opportunity. To ensure security and transparency, funds are tracked and documented and we only transfer investment funds upon completion of each transaction. If, for any reason, the transaction does not close, your investment amount will be fully refunded.
Once the investment is made, investors receive quarterly updates in their private online account and via email. The NexusCrowd team is always available in person or on the phone to answer questions or walk you through the process. Contact Us
4. No good developer would raise money using an online platform
While it is true that several large developers have a steady stream of funding, there are an equal number of very reputable developers who seek high quality and consistent alternative sources of capital.
NexusCrowd partners with developers and investors who fall into this ‘sweet spot’ by working with them to offer an alternate source of capital with little/no administrative hurdles. We are very selective about who we partner with and only collaborate with recognized developers and investors with strong knowledge, connections and a plan to mitigate unforeseen risks.
5. This method of investing is suitable for all investors with all risk profiles
No investment is risk free. However, NexusCrowd mitigates risk in a number of ways. These include selecting established and experienced partners to source and manage deals, thoroughly vetting each deal and not being the sole investor in any deal.
Finally, NexusCrowd follows a Know Your Client (KYC) process before any investment decision is made to determine individual investor suitability. If we determine that the inherent risk in an investment is not suitable for you, we will let you know.
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