Real estate investing has been a popular method of building long-term wealth and passive income. However, investing directly in real estate properties can be time-consuming, capital-intensive, and risky. This is where real estate crowdfunding platforms like Elevate Money come in. In this review, we’ll take a closer look at Elevate Money and see how it stacks up as a real estate investment option in 2023.
What is Elevate Money?
Elevate Money is an innovative real estate investment platform that allows investors to invest in multiple real estate projects with a minimum investment of $50. The platform operates as a real estate investment trust (REIT) and partners with experienced real estate developers and operators to source and manage properties. Investors receive a proportional share of the income and profits generated by each project, making it an attractive investment option for those looking to diversify their portfolio.
How Elevate Money Works
When you invest in Elevate Money, you’re investing in a diversified portfolio of real estate projects. The platform partners with experienced real estate developers and operators to source and manage properties, ensuring that each project is carefully selected and managed for maximum returns. Investors can browse and choose from a variety of real estate investment options, including multifamily housing, commercial properties, and retail spaces.
One of the advantages of investing in Elevate Money is the ability to choose from different types of investment structures, including debt and equity investments. This provides investors with a range of risk and reward profiles to choose from, depending on their investment goals and risk tolerance.
Types of Real Estate Investments Offered
Elevate Money offers a variety of real estate investments across different sectors and geographies. This allows investors to diversify their portfolios and reduce risk by investing in a variety of projects. Some of the investments available on the platform include:
- Apartment buildings and multifamily housing
- Commercial office buildings
- Retail spaces and shopping centers
- Industrial warehouses
Investors can choose to invest in specific projects or diversify their portfolios by investing in a range of projects across different sectors and regions. This flexibility allows investors to tailor their investments to their specific needs and investment goals.
Account Creation and Funding
Creating an account on Elevate Money is a straightforward process. Investors need to provide basic personal and financial information, as well as complete an accreditation questionnaire to ensure eligibility for investment. This ensures that only accredited investors are able to invest in the platform.
Funding an Elevate Money account can be done through a bank transfer or by linking a debit card or bank account. The platform also offers IRA accounts for investors looking to invest through their retirement accounts. This makes it easy for investors to start investing in real estate projects with minimal hassle.
Overall, Elevate Money is an attractive investment platform for those looking to diversify their portfolio and invest in real estate projects. With a range of investment options and flexible investment structures, it offers investors the opportunity to earn attractive returns while minimizing risk.
Pros and Cons of Investing with Elevate Money
Investing in real estate can be a lucrative way to grow your wealth, but it comes with its own set of risks and challenges. If you’re considering investing with Elevate Money, it’s important to weigh the pros and cons carefully. Here are some advantages and potential drawbacks to consider:
Advantages of Elevate Money
Investing with Elevate Money offers several advantages, including:
- Diversification: Elevate Money allows investors to spread their money across different real estate investments, reducing their exposure to any one project or sector. This can help mitigate risk and provide more stable returns over time.
- Professional management: The platform partners with experienced real estate developers and operators to manage properties and handle day-to-day operations, reducing the amount of time and effort required from investors. This can be especially beneficial for investors who don’t have the time or expertise to manage their own real estate investments.
- Access to institutional-grade properties: Platforms like Elevate Money can provide access to properties that would otherwise be inaccessible to individual investors due to high costs or limited availability. This can give investors the opportunity to invest in high-quality real estate assets with strong potential for appreciation and income.
- Transparency: Elevate Money provides investors with detailed information about each investment opportunity, including financial projections, property details, and risk factors. This can help investors make more informed decisions and feel more confident about their investments.
Investing in real estate comes with risks, and Elevate Money is no exception. Some potential drawbacks to consider include:
- Limited liquidity: Real estate investments are generally illiquid, meaning it can be challenging to sell or exit a position quickly if needed. This can make it difficult to access your funds in an emergency or take advantage of other investment opportunities that may arise.
- Market risk: Real estate markets can be volatile, and economic downturns or shifts in consumer behavior can negatively impact property values. This can lead to lower returns or even losses for investors.
- Fees and expenses: Real estate crowdfunding platforms like Elevate Money charge fees for managing investments and often require higher minimum investments than other investment options. These fees can eat into your returns and make it more difficult to achieve your investment goals.
- No control over individual properties: When you invest with Elevate Money, you’re relying on the platform’s management team to make decisions about which properties to invest in and how to manage them. This means you may not have as much control over your investments as you would with other types of investments.
Overall, investing with Elevate Money can be a good option for investors who are looking to diversify their portfolios and gain exposure to high-quality real estate assets. However, it’s important to carefully consider the risks and potential drawbacks before making a decision. By doing your research and working with a trusted financial advisor, you can make informed decisions about your investments and achieve your financial goals over time.
Elevate Money’s Investment Strategy and Performance
Diversification and Risk Management
Elevate Money’s investment strategy focuses on diversification and risk management. The platform aims to provide a diverse range of real estate investments across different sectors and regions to reduce risk and increase potential returns. Additionally, the platform partners with experienced developers and operators who have a proven track record of success in managing multifamily, commercial, and industrial properties.
Historical Returns and Track Record
As of 2023, Elevate Money has a strong track record of delivering consistent returns to investors. According to the platform’s website, investors saw an average annualized return of 8.6% from 2017-2022, with no negative annual returns during that time period.
However, past performance is not a guarantee of future returns, and investors should conduct their research and due diligence before investing with any platform.
Fees and Costs Associated with Elevate Money
Management Fees and Expense Ratios
Elevate Money charges management fees, which vary depending on the investment structure and type. For example, equity investments may have higher fees than debt investments. On average, investors can expect to pay management fees ranging from 0.5% to 2% annually.
The platform also charges an expense ratio, which covers administrative, legal, and operational costs. This fee typically ranges from 0.5% to 1.5% annually.
Withdrawal and Transaction Fees
Elevate Money does not charge investors to sell their positions, but there may be fees associated with withdrawing funds before a project’s completion.
Comparing Elevate Money to Other Real Estate Investing Platforms
Elevate Money vs. Fundrise
Fundrise is another popular real estate crowdfunding platform that operates similarly to Elevate Money. Both platforms offer investors the ability to invest in multi-property portfolios and aim to provide broad diversification across different markets and sectors. Fundrise, however, offers a lower minimum investment of $100 and charges a slightly lower management fee of 0.15%-1.0% annually.
Elevate Money vs. RealtyMogul
RealtyMogul is another real estate crowdfunding platform that aims to provide individual investors with access to institutional-grade commercial real estate investments. Unlike Elevate Money, RealtyMogul offers a range of investment options, including both debt and equity investments in commercial properties. Investors with a larger capital base may find RealtyMogul’s offering more attractive, as the platform requires a minimum investment of $5,000 for most investments.
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