Collab Review 2023 | Invest In Crowdfunded Student Housing

you can
add a new income streamBring richness to your life by building a diversified investment portfolio across multiple asset classes, including real estate.

but traditional Real Estate InvestmentIt can take time and often requires a large capital injection upfront.

If you are looking for a less hassle investment,collaborationbring opportunity. Collab makes it easier for investors to enter the student housing real estate market. Crowdfunding investment model.

This Collab review explores the platform in detail so that you can decide if it’s right for your situation.

What is collaboration?

Collab is a crowdfunding real estate investment platform that aims to connect investors with income-generating student housing opportunities. Through this platform, you can become a co-owner of student housing by purchasing shares.

At the time of writing in July 2023, Collab has one investment property available (nearly 50% sold, with two more coming soon). Collab says more properties are on the way.

What do you offer?

Collab offers a unique opportunity for real estate investors seeking a more passive approach. Let’s take a closer look at some of the key features of the Collab platform.

Become a joint owner through a stock purchase

Both non-accredited and accredited investors can purchase shares in income-generating student housing properties through Collab. When you buy a stake in a live project, you become a joint owner of that property. In other words, you buy shares in an LLC. Check your project details at any time on your investment dashboard.

No dedicated property manager

Collab does not have a full-time property manager. Instead, the platform will allow all her Collab members to perform optional administrative tasks. Members who complete tasks are rewarded for their time.

For investors, this gives them the opportunity to do more when they need it. However, there are always options for less physical work.

According to Collab, this work-sharing strategy can result in more efficient execution of investments and potentially higher return on investment in the long run.

Income stream

Collab pays regular cash dividends to its investors. Each month, Collab will distribute his 100% of all rental profits to shareholders, so you will receive funds into your bank account each month.

Investors can also realize capital gains over time beyond their monthly income stream. For example, when a property is sold or refinanced, you may get a portion of the proceeds.

Focus on student housing

Collab’s focus on student housing is unique in the world of fractional real estate investing. Their goal is to find profitable ventures close to college campuses, and Collab provides a wealth of data on why they decided to pursue this segment of the real estate market. increase.

Collab puts potential projects through an extensive review process. If the numbers go well, Collab will proceed to acquire properties.

Liquidity

The downside to using a fractional real estate platform like Collab is the lack of liquidity. Once invested, it is fixed for several years.

That’s because Collab doesn’t have a secondary market for buying and selling shares. This means that you cannot sell your shares immediately if you need the cash. Collabo is considering an early redemption program for those who need to cash out early, but until then, you’ll have to wait until the property is sold to see the cash value of the shares.

It is important to note that liquidity is an issue with most fractional real estate investment platforms. You can mitigate this liquidity risk by never investing funds that you may need to access in the short term.

In other words, Collab is better suited for investors who are comfortable with long-term prospects.

Are there any fees?

Collab charges investors a 2% asset management fee. This fee comes directly from your earnings and is based on the value of the property.

When Collab sells a property, it deducts 20% of the incremental value, which is the difference between the selling price and the acquisition price. This is known as the 2 and 20 models.

It is important to note that Collab owns at least 5% of all available real estate equity. This ensures that the interests of the company are aligned with those of our customers.

How does it compare to collaboration?

Collab is not the only platform for real estate investors. However, it is the only platform dedicated to student housing projects.

fundraiseris a real estate investment trust (REIT) that allows you to invest in multiple properties with a single holding. Fundrise provides more liquidity in addition to providing greater diversification across multiple investment properties. An investor has the opportunity to sell his shares up to four times a year with 30 days’ notice. Fundrise also has a lower annual management fee of 1% of AUM compared to Collab’s 2%.

Arrived homeis a crowdfunding real estate platform that invests in single-family homes. Arrivals are subject to an annual administration fee of 1%. In addition, 8% of the monthly rent will be used as a property management fee. You can start investing in Arrived Homes with $100.

How do I open an account?

You can start using Collab by browsing the properties on the Collab website. When you find an investment opportunity that interests you, buy the stock. You can purchase with a bank account or credit card. Various forms must be signed to complete the investment.

After purchasing a stock, you can always check the status of your investment in your Collab dashboard.

Are you safe and secure?

Yes, the Collab platform is safe to use. The investment opportunities offered are regulated. Securities and Exchange Commission (SEC), which means companies must adhere to strict reporting requirements. Additionally, the company uses bank-level security to always protect your financial information.

Please note that while an investment is safe, that does not mean that Collab is a safe investment. Returns are not guaranteed and may result in loss. That’s why it’s so important to diversify your investments across different asset classes and maintain a long-term view of your Collab holdings.

How can I contact Collabo?

If you need to contact Collab, they have a contact form on their website, or you can send an email to support@collabhome.io. The Collab website also has a chat feature.

If you would like to connect via social media, Collab is available through Facebook @CollabHome, Twitter @CollabHomeHQ, LinkedIn @CollabHome, Instagram @collab_home and Discord.

Is it worth it?

Being able to invest in student housing real estate projects is great. If this type of investment opportunity fits your portfolio, Collab may be for you. The company is relatively new to the market, but it seems to have a streamlined system in place for investors.

Collab may not be the right choice if you’re not ready for a long-term financial investment. Lack of liquidity means that you may end up withdrawing funds for several years. Before embarking on such long-term investments, it is usually advisable to have a solid emergency fund in place.

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