In the classroom today, Jason Fritton explains how over the past few years, it’s become easier and easier to invest quickly online with reliable information at your fingertips.
Jason elaborates on the ability to invest in a real estate deal with only a few thousand dollars.
Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the Real Estate Industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Jason: Hi, everybody. I’m Jason Fritton. I’m the CEO and co-founder of Patch of Land, the leading alternative online marketing funder for real estate and I’m your host today for REI Classroom. I’d like to talk to you about how FinTech is changing real estate investing.
Mike: This show is sponsored by PassiveRental.com.
Jason: So it’s a whole new world, just the bottom line at this point. In the past, everybody here knows real estate investing has been a very, very insular industry. It’s generally done with handshakes, and backrooms, and site visits, and Excel spreadsheets. But really, today, we have access to an enormous amount of new additional tools that really have not been possible before, and this entire world of new data, which has not been possible before.
Portals like Patch of Land have allowed real estate investors to take a much, much more holistic approach to real estate investing than what’s been possible in the past, and really, really be able to spread their inputs and increase their ability to be able to own the properties, to invest in properties, to get data about properties and to even influence other people’s influence decisions on properties, in general, as well.
In the past, honestly, previous September 2013, it’s really been illegal outside of very, very specific situations to raise capital online. It was public solicitation for securities. According to the Securities Act of 1933, it was illegal. That changed with the advent of the Jobs Act, that was an act by the SEC in 2013.
That allowed portals like Patch of Land and others like us to be able to be very, very transparent and really be able to take what has been, in the past, a very fragmented, desperate, hyperlocal, often predatory industry and bringing a lot in shine daylight into this entire industry and be able to bring a level of diversification and level and ease of investment that just hasn’t been possible before.
At this point, investors can now invest in real estate in two minutes flat from their mobile phones in their pajamas on their couch. That’s never been possible before. We’re really actually excited about that. Most importantly, they’re able to achieve a level of diversification that hasn’t been possible before. So now, investors can invest in a real estate with just a few thousand dollars, as opposed to a few hundred thousand dollars.
So you can actually take your available capital, instead of putting all your eggs in one basket, in one or two properties, now you can actually spread it out to 10, 20, 50 different properties as well. So if something goes wrong, and something inevitably will, as we all know just through numbers alone, your level of diversification helps to protect you so you end with a full positive return in general.
Then, on top of that, we have this access to data that we haven’t had before. So you’ve got sites like FlipNerd, they’ve been able to show you things that perhaps you hadn’t have an access to before. You’ve got sites like Patch of Land, where we’re able to show you things from school system reports on properties to crime rates in the particular area, what your average time on market, your demographic information that really has been very difficult to find before.
Really, the opportunities as we continue to grow, and you’re going to start seeing this over the next just couple of years of loans can become a whole different world, really, really exciting. Thank you, everybody. I’m Jason Fritton.
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