Real estate is one of the most popular and profitable investment options for many people. However, investing in real estate can also be expensive, complicated, and risky. You need to have a lot of capital, knowledge, and experience to find and fund good deals, manage and maintain properties, and deal with legal and tax issues. What if there was a way to invest in real estate online, with as little as $1,000, and without all the hassle and headache? That’s what Tycoon Real Estate claims to offer.
What Is Tycoon Real Estate?
Tycoon Real Estate is a real estate crowdfunding platform that allows anyone to invest in real estate deals posted by those looking for capital. The platform was founded by Aaron McDaniel, a former AT&T executive and author of two books on career development. McDaniel pitched his idea on Shark Tank in 2015 but failed to get any investment from the sharks.
The idea behind Tycoon Real Estate is simple: instead of buying a whole property by yourself, you can buy a share of a property with other investors. You can choose from different types of properties, such as residential, commercial, industrial, or land, in different locations and markets. You can also choose from different risk-return profiles, such as debt or equity, short-term or long-term, income or appreciation. You can invest as little as $1,000 or as much as you want, depending on the minimum and maximum amounts set by the deal sponsor.
Tycoon Real Estate acts as a middleman between the investors and the deal sponsors. The platform vets the sponsors and the deals, provides due diligence reports, handles the legal paperwork, collects and distributes the payments, and monitors the performance of the properties. The platform also charges a fee of 10% of the profits to the investors and 3% of the raised capital to the sponsors.
What Are the Benefits of Tycoon Real Estate?
Tycoon Real Estate has some benefits that make it appealing to some investors, such as:
- Accessibility: Tycoon Real Estate allows you to access real estate deals that are otherwise unavailable or inaccessible to individual investors. You can diversify your portfolio by investing in different types of properties in different markets with minimal capital.
- Simplicity: Tycoon Real Estate simplifies the process of investing in real estate online. You don’t need to worry about finding, financing, managing, or selling properties. You just need to browse through the available deals, select the ones that match your criteria, and click a button to invest.
- Transparency: Tycoon Real Estate provides you with detailed information about each deal, such as the property description, location, photos, financial projections, risks, returns, etc. You can also see the profiles and reviews of the sponsors and other investors. You can also track the progress and performance of your investments through the online dashboard.
What Are the Risks of Tycoon Real Estate?
Tycoon Real Estate also has some risks that make it challenging for some investors, such as:
- Competition: Tycoon Real Estate is a competitive and fast-paced market, where there are more investors than deals. According to their website, there are currently no active deals available for investment. The demand for real estate crowdfunding is driven by factors such as low interest rates, low inventory, high migration, and high desirability.
- Complexity: Tycoon Real Estate is a complex and diverse market, where there are different laws, regulations, and customs that govern the real estate transactions and protect the rights and interests of both parties. For example, each state has different rules and requirements for licensing, taxation, disclosure, etc. You may also need to consult with professionals such as lawyers, accountants, appraisers, inspectors, etc. to understand the implications and consequences of each deal.
- Unpredictability: Tycoon Real Estate is an unpredictable and dynamic market, where there are many factors that can affect the value, availability, and desirability of the properties. These factors include natural disasters such as hurricanes, floods, fires, etc., economic fluctuations such as recessions, inflation, unemployment, etc., social changes such as demographic shifts, lifestyle trends, cultural preferences, etc., and political events such as elections, legislation, taxation, etc.
Conclusion
Tycoon Real Estate is a new way to invest in real estate online that offers some benefits and challenges for investors. It allows you to access real estate deals that are otherwise unavailable or inaccessible to individual investors with minimal capital. It also simplifies the process of investing in real estate online by providing due diligence reports, legal paperwork, payment collection and distribution, and performance monitoring. However, it also involves competition, complexity, and unpredictability that may make it difficult or risky for some investors.