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Changes in Technology Mean Big Changes in Real Estate Investing Online

Real estate investing strategies have been around for quite some time. Thanks to advances in technology, in conjunction with new opportunities brought to life by the JOBS Act, traditional methods of investing are changing, bringing real estate investing online into the eye of the mainstream. As its popularity increases, many individuals are slowly becoming more comfortable with the new technology and realizing how it can work in their benefit.

With the introduction of crowdfunding platforms and the passing of Title I and Title II of the JOBS Act, awareness for online real estate funding and real estate investing online have been brought into the spotlight, drawing all sorts of attention from investors, developers and sponsors. Indeed, technology has really given rise to alternative lending, giving more opportunities for real estate investors and Developers to participate in bigger deals, leading to higher returns on their investments. Real estate investing online also means investors don’t have to rely on their connections to find the best deals and developers and sponsors can get their deals funded in record time.

Related: How to Survive a Shark Tank Attack

When you think about it, advances in technology have honestly changed every aspect of our lives, from Internet, text messages, emails, conference calls, business transactions, and real estate. The Internet impacts how we are able to buy, creating a new e-commerce world which has given birth to the phenomenon of crowdfunding and marketplace lending. With so many people able to access the Internet, it’s really no surprise that it also affects how we invest our money and diversify our portfolio. Here at Patch of Land, we use advances in technology to boost efficiency and streamline our ability to scale and provide more crowdfinancing abilities for national real estate investors and professional real estate Developers alike. Overall, new laws combined with innovative technology have allowed real estate investing online to become a mainstream concept with the potential to become an everyday part of life in the near future.

 

More Benefits: Quicker, Faster & Better

One of the biggest benefits of the Internet is having access to a wide availability of information on any subject matter, and to have that information quite instantly. Information is available to us in multiple forms with just a few clicks of a button without ever needing to leave our phones, tablets or computers. With just a small hint of curiosity, we are able to immediately pull up data to answer questions, research companies, or find out current events for a country halfway across the world. On average, Google processes 40,000 search inquiries per second, this means that they are processing over 3.5 billion per day! The ability to access data allows Patch of Land’s state of the art technology to perform more thorough underwriting and stronger due diligence. In fact, Patch of Land is able to score and accurately determine if a real estate project is worth looking into before one of our loan officers or underwriters even sees the application. If a project is deemed worthy of prefunding, Real Estate Investing OnlinePatch of Land uses the ability to share data to become completely transparent with every investment offerings. This transparency gives national real estate investors access to documents on our real estate crowdfunding portal so they can perform their own due diligence. Ultimately, helping individuals make a sound investment decisions regardless if the property is in the same town, or all the way across the country.

Prior to these advances in technology, people looking to make investments were forced to research their investment options by reading financial literature at the local library or by contacting the company directly for their financial reports. They also had to rely on their industry connections to find the best real estate deals. On the flip side, real estate developers would spend days and weeks - if not months - trying to find investors willing to talk to them, and even more time to get the deal funded, approved and the project started! In today’s version of real estate investing online, this can all happen within hours.

 

Even Traditional Investing is Changing

For traditional investors who prefer stocks and bonds, many use brokerage firms to handle their online trading. Brokers generally charge some type of commission to do this and can be done on the trading floor, via a phone or done electronically. Advances in technology have made communication between the investor and the broker easier and quicker by allowing information to be shared via email to phones or tablets. It introduces a way to provide statistics, numbers, and values to clients for instant decisions.

Online trading also introduces other platforms and research tools for investors to make smarter decisions when it comes to their finances and investments and also when choosing an online broker. With the wide availability of alerts and watch lists, streaming quotes, reports, charts, and graphs, the investor is able to stay informed and up to date from any device. This also allows the investor to make actual trades directly from those same devices. In essence, Patch of Land is no different as everything seen on our real estate crowdfunding platform is 100% mobily responsive.

Related Podcast: Welcome to the Future of Investing

 

Real Estate Investing Online

Real estate crowdfunding has taken all the hard work out of real estate investing and made it more efficient. Advancements in technology have increased the availability of peer-to-peer lending, allowing investors to be matched with borrowers more easily no matter what part of the world they are in. Furthermore, investors are able to view the progress of projects they are funding, their expected return, and more.

Investors are able to find the best project to invest in, view full financials, photos, appraisals and any documents pertaining to the project all on one page. When the investors are ready to invest in that project, everything is done online and instantly. Once the project is completed, the investor is repaid their principle balance plus any remaining interest directly into their bank account. If an investor chooses to withdraw their money or find a new project to invest in, they can do so all with the click of a mouse.

The introduction of crowdfunding gives accredited investors the ability to invest in many different types of asset classes. Whether you are looking for an equity investment to have some long-term ownership stake in a property or looking for a short-term debt investment, it’s all available online!



If you want to learn more, take a look at some of the most commonly asked questions we receive about real estate crowdfunding on a daily basis and find out why so many people are crowdfunding real estate projects across the country with Patch of Land.
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