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For many, real estate can be a challenging investment to add to their portfolio. It typically requires significant funds to get started. It may also require significant time investment to manage the properties. These barriers keep many would-be real estate investors blocked from potential earnings.
That’s why Here is on a mission to remove those barriers. But is their solution right for you? The following Here vacation rental investment reviews can help guide your decision.
What is Here?
The Here.co platform is designed to make it easier to invest in real estate. By establishing smaller share prices, anyone can break into this market. Here has also pioneered a new category of investing to accomplish this goal: fractional ownership of vacation rentals.
This arrangement gives investors the opportunity to invest in high-yielding properties, with none of the hassles associated with property management. Since this is generally considered the ideal scenario for real estate investment, this opportunity might be something to consider.
How does Here work?
The concept is fairly simple. You want to invest in real estate, but you don’t have $100,000 to get started. Do you have $100? Here will let you get started with just one Benjamin. You can buy shares in a property for as little as $1 each, with a 100-share minimum, creating a $100 minimum investment.
For these funds, you buy indirect ownership interest in the property and will receive fractional interests. As the property makes money from rental fees, so do you.
You can browse the properties available for investment through Here and choose one that meets your investment criteria (location, share price, etc.) Then, determine the amount you’d like to invest and sign Here’s terms to fund the investment.
You can make an initial investment in any Here property that is currently open and raising capital. You can also choose to increase your investment at a later date, as long as the offering is still open. Once a property is 100% funded, it is closed to additional investments.
After you’ve purchased your shares in a property, you begin earning passive income from the rental. Here manages all day-to-day operations, so zero property management responsibilities land on your plate.
You will receive quarterly payouts that are generated through rental booking income. These payouts are deposited directly into your Here account. Payments arrive within 45 to 60 days of the start of each quarter.
Here’s cost for these services is a 1% annual fee, based on the value of the property. Here deducts this fee in increments of 0.25% each quarter.
Review of Here.co features
Here vacation rental investment reviews would not be complete without a listing of the platform’s features. Following are some of the benefits Here offers.
Customer service
Based on Here vacation rental investment reviews, this platform offers the solid customer service you would expect from a professional investment service. A live chat-box option and informative FAQ page serve customers well. Representatives are also responsive to email inquiries.
Security
If you’re considering online investments, security is key. You’ll be sharing sensitive financial information, so the platform must take security seriously. Here does so. They don’t sell your data to third parties. They also designed the platform with high-level encryption to defend against hackers.
Additionally, all user identities must be verified before anyone can begin investing. And lastly, all bank transfers involved are secured through Plaid. This third-party provider is known for solid anti-fraud and security measures.
Partnership
Here has skin in the game for each property. The company holds at least a 1% ownership in each asset. This makes them a business partner rather than simply a platform trying to sell shares.
With this arrangement, the success of the property directly affects Here’s own profits. Therefore, Here is further incentivized to choose quality properties for investment offerings.
Protection
Here holds property shares in a fully insured LLC. This provides protection for investors against property damage or other mishaps at the location. It may also provide tax benefits.
Investment and pricing
This category is what differentiates Here from other investment platforms. Here vacation rental investment reviews reveal this is one of the platform’s biggest selling points.
Here is not designed to attract only experienced, accredited investors with high-end budgets. You’ll be hard-pressed to find other opportunities to invest in real estate for a $100 minimum.
The fee structure is also transparent and reasonable. The 1% annual fee is stated up-front and based on the asset’s value. All management fees are paid through the property’s revenue. There are no hidden fees or management responsibilities to surprise investors.
Drawbacks to consider
As you take a look at Here.co vacation rental investment reviews, three main drawbacks stand out.
Lack of offerings
Here hand-picks short-term rental properties for high-earning potential. However, Here tends to have fewer offerings than other companies. As a newer company that puts its own funds in the investment, Here cannot offer as many options as some of their competitors.
Lack of mobile app
Here currently does not offer a mobile app for their investors. While the website is user-friendly, for those who rely on apps, this may be a drawback to Here’s services.
Lack of payout
It is possible to experience periods with no payout from your investment. The quarterly payouts are based on the booking income, which is rent minus expenses and fees. These expenses include any repair costs, insurance, HOA fees, property taxes, management fees, and other liabilities.
Additionally, the high turnover of short-term rentals can increase operating costs. If all of these costs add up to more than the rental income for that period, you will not receive a payout.
Reasons to try Here
Despite the potential drawbacks, Here vacation rental investment reviews reveal some attractive features that may make this investment option worth pursuing.
Open platform
Non-accredited investors are welcome. This is not an exclusive club. Rather, it is designed to invite new investors and open opportunities for anyone to invest.
Low buy-ins
The $100 minimum investment is a rarity. The low threshold opens a door to real estate investment that is often closed for many potential investors.
Investment potential
While there is a possibility of experiencing quarters with no payout, vacation rentals are known for generating decent revenue. Based on Here’s reports, on average, they generate up to 160% more revenue than traditional long-term rentals.
Passive income
All properties are managed by Here. As an investor, you can earn passive income, with no responsibilities or hassles that often accompany real estate investments.
Is a Here vacation rental investment right for you?
No investment platform is right for everyone. It is crucial to consider the pros and cons of each option and weigh those with your investment goals. If you are looking for passive income, interested in investing in short-term rentals, or are a non-accredited investor, Here might be a good opportunity for you.
However, Here has a limited number of offerings. This means, despite their low-barrier model, it might be challenging to find a property suitable for your investment needs.
As you make your decision, keep in mind that it is important to read all the fine print and fully understand a platform before you invest. If you’d like additional information on this platform beyond what is found in this Here vacation rental investment review, visit their website to learn more.