By Guglielmo de Stefano on Friday 8 January 2016
The new tool will help investors to better understand their potential returns.
New York-based real estate crowdfunding platform Acquire has realeased an online interactive calculator. The new tool will provide investors with the chance to calculate their expected returns from prospective real estate investments. The calculator predicts expected cash flows based on a user’s initial investment and the targeted returns for the property. The output is based on an investment made on day one of the offering.
Founded in 2014, crowd investing platform Acquire offers investors the chance to invest in a collection of income-producing commercial properties – defined by the platform as “hard-to-find real estate investments”. The company seems to underwrite and invest in each of these deals prior to making them available to its investors.
The calculator was supposedly conceived to meet increased investor demand for transparency in real estate investments. It displays many useful details, including the legal fees, percentage ownership and total profit. You may access the Cash Flow Calculator on the Acquire website at https://goo.gl/JHT9r7.
Steven Bettinger, CEO of Acquire Real Estate, commented:
“We know that making the decision to invest in real estate is an important one, and it’s our goal to make this process more transparent. Today’s investors have the opportunity to create a portfolio that truly reflects their real estate preferences and appetite for risk. We want to make the process—from identifying the right opportunity to making an investment—as transparent as possible. This calculator is a step in that direction.”
Apart from this quantitative tool, Acquire also offers investors a wide array of articles, videos and other resources designed to improve and boost the decision-making process.
“As investors ourselves, we understand the importance of making informed investment decisions, and that includes understanding the money that you stand to make from each investment in a simple, concise and easy to understand format.”
Real estate crowdfunding is becoming a budding and clearly defined niche within the broader alternative finance space. Only yesterday, we reported that US real estate crowdfunding platform iFunding will be kicking off 2016 with a new advisory board in place. More and more investors are warming to the advantages of real estate equity crowdfunding – i.e.: flexibility, diversity, the promise of future liquidity and strong returns.
According to a Massolution report, this sector raised over $1 billion globally during 2014 and almost $2.57 billion by the end of 2015 – a figure that is expected to increase further in 2016. Watch this space.