Crowdfunding has grown substantially since the inception of Title II of the JOBS Act. One of the most active subsections has been equity sharing in real estate. With over a hundred active companies all offering their own special blend of crowd sourced real estate transactions, it is hard to see how another could innovate a new option for investors.
C.K. Mack just launched a company with a new take on crowd sourced real estate investing. Their COO, Mack Schicktanz, describes the platform as “an improvement on both the crowdfunding and peer to peer lending models. The system offers cash flow based, real estate backed investments with a minimum of just $25. Unlike the crowdfunding model, which calculates IRR, your return isn’t heavily based on speculative appreciation estimates. We calculate the return based on the actual performance of each individual property on our system.” C.K. Mack escrows for hard costs like taxes and insurance. They also take escrows to account for repair and vacancy. So, even if your investment needs property improvements, your return should not be affected.
While users don’t get the appreciation, there are some very interesting advantages to this system. When rent increases so does your ROI. Rent increases are passed on to investors in those properties. Users are only committed to holding their investment for 12 months while other companies sometimes require three to ten year commitments. A very exciting aspect of the business model is their in-house buyback program. After 12 months, whenever you are ready to divest, C.K. Mack will buy back your securities at your initial principal investment. The monthly distributions allow you to reinvest at a more frequent rate. The compounding effect of the reinvestment opens the opportunity to boost investor’s returns even higher than some traditional equity crowdfunding opportunities.
One of the most exciting opportunities and a hot topic at CrowdTrader.net is diversification. The minimum investment per property is $25, however you can invest in as many properties as you choose. This allows any investor the option of spreading what might be a minimum investment on other platforms across a pool of properties. As the investment offerings on the site grow it will be exciting to explore the option of diversification through multiple regions.
To take a closer look at this new option visit https://ckmack.com.