Investing in Equity Crowdfunding Opportunities
Hello! and thank you for learning to Invest with us, now before I tell you the "How to" lets take a moment to understand what you are Investing in and how you can "game" your investments so that you can get the most Return on Investment for your money and make sure your money goes where you want it to go.
To get started lets take a look at Some relatively cheap Investment Opportunities
Every opportunity you see will have an Image, a Title, a Minimum Investment Cost, and Invest form. Whereas the Image and Title are self-explanatory, the Minimum Investment Cost and Invest form are more than what they seem.
Minimum Investment Cost
For every Opportunity, there a total of 100 Shares (or more but we'll get to that) available for investing. So Minimum Investment Cost is the price to purchase a single Share of the Opportunity.
100? Simple right? One thing to keep in mind before an Investment Opportunity is permitted to be posted, the Crowdfunder must have 20% of their Asset Crowdfunding Total as Liquid Assets. Meaning that for a Crowdfunding goal of $100,000, the Crowdfunder has $20,000 of their own money in the pot. We don't support Crowdfunders who aren't willing to put "skin in the game" to ensure their personal reliability. Whereas the Crowdfunder is never put in a position to lose any amount of their money, it proves to both the investor and to us here at Pohfinancial.com that they can put their "money where their mouth is".
It's important to note, that for every $100,000 a Crowdfunder is asking for, an additional 100 Shares are introduced to the Opportunity. A good example would be if someone is Crowdfunding $67,000 there would be 100 shares, if someone is Crowdfunding $135,000 there would be 200 shares available for purchase.
So now that you can evaluate an Opportunity at face value, lets take a quick look at some of the "nitty-gritty" information for:
Length of Return aNNUAL roi
30 Years 11.81%
Asset type: Real estate-rental
WHAT IS THE PROPERTY LOCATION:
1234 Interesting Ln,
Center, OH 12345
HOW MANY UNITS ARE THERE:
HOW MANY BEDROOMS/UNIT:
HOW MANY BATHROOMS/UNIT:
WHAT YEAR WAS THE PROPERTY BUILT:
WHAT IS THE APPROXIMATE PRICE OF THE PROPERTY:
CURRENT NET OPERATING INCOME:
HAVE ALL MODIFICATIONS TO THE PROPERTY BEEN DONE WITH PERMIT (AS APPLICABLE):
WHAT IS THE CURRENT VACANCY RATE:
That's a nice wall of text we have here. So lets go ahead and break it down piece by piece
Asset Crowdfunding Goal
Simply put, this is the amount the crowdfunder hopes walk away with, including their security deposit
This is incredibly important for you as an investor, because "Leveraged Profits" is a mechanic introduced by us to ensure that we provide a strong competitive market for you.
So Every Crowdfunder on a successfully Crowdfunded Opportunity will pay profits every month, and those profits get sent back to you, the Investor. "Leveraged Profits" mean that they have opted in to pay an extra amount at their choosing, and that amount gets sent back to you, increasing your Rate of Return.
For example, MY FIRST OPPORTUNITY, has Leveraged $400 every month to you, the Investor. Lets compare what happens before the leveraging and afterwards, The Minimum Return on Investment would be:
Annual Interest: 4.68%
As Opposed to Leveraging $400 and giving you the Investor...
Annual Interest: 30.09%
Pretty Big difference right!? Leveraged Profits directly affect the return you get as an Investor.
Length of return
This describes the amount of time you will get a return on investment.
Minimum Return on Investment
Here is the most important information for you as the investor. Simply put; The bigger the percentage is, the bigger your return is. To see exactly how much your return will be, Included in every Opportunity Image Gallery is a chart indicating how much you will receive every month, add it up for the year and you have your Yearly Return.
Lets take a look at LITTLE DREAMERS Return Charts
You will find four different kind of Opportunities:
Real Estate- Rental
Real Estate- Flip
Real Estate: Rental
- Purpose: to purchase real estate for the intent of collecting rent over a long period of time
Real Estate: Flip
- Purpose: for the intent of increasing value of a property you own and turning for a quick profit
- Purpose: to help your business get off the ground
- Purpose: your business is already producing a profit but you need capital to expand your business
This gives you a general Idea of what exactly the Crowdfunder trying to do.
This is where the Crowdfunder declares information about the Asset that they are crowdfunding for. These questions cover some basic things that are Need to Know information to you as the Investor. After reading this, you should know exactly where your money is going, and how it's being used.
Here you can find all the extra information from the Crowdfunder that isn't covered by the questions in Asset Information.
Whew, now that we got through that...
All you need to do as an Investor is use the information provided to pick out which investment you like best, then Purchase a unit (or units) especially if its a good Opportunity.
If an Opportunity succeeds, we will send you a Letter of Authentication with congratulations on a Successful Investment, on a failed Opportunity your money will be refunded 100% with a brief explanation (i.e. Not enough raised) sent to the email address provided