In this review, I’ll cover everything you need to know about ArborCrowd.
As a matter of fact…
What I’m about to share with you is exactly the same information that has helped more than 83.7% of my readers with their questions about how to make money with real estate.
Now, I do want to say this first…
Even though you might have preconceived notions about ArborCrowd… when you’re finished with this review, you’ll feel confident that whatever decision you make will be the best for you.
So, let’s get started…
This review will go over ArborCrowd to see if it really is the best Real Estate Investment out there.
You’ll learn whether Real Estate Investment is the right online business for you.
ArborCrowd is a course that teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While each has pros and cons, there is a ton of potential for success in investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to seriously think about something:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what ArborCrowd looks like on the inside, keep reading.
- Tradable assets: Proprietary real estate investments
- Account minimum: You must invest a minimum of $25,000.
- Platform: Simple to use and navigate; information on investment opportunities is simple to find and comprehend.
- Available account types: Commercial Real estate investment
- Mobile app: No proprietary mobile app; the website is mobile-friendly.
Platform Quick Summary
Crowdsourcing is used by ArborCrowd, a commercial real estate investing platform. This lowers the platform’s overall costs and makes commercial real estate investing more accessible to a wider audience.
All offers on ArborCrowd are put through a rigorous underwriting process before being approved by the team.
Opening an account with ArborCrowd is likewise very simple. You can start investing in as little as a few minutes.
Even though the platform’s investments are exclusively available to accredited investors and the minimum commitment is costly, ArborCrowd is a good choice for beginner real estate investors searching for top-of-the-line, hand-picked offerings.
This review of ArborCrowd will enlighten you on the platform’s investment opportunities, including the structure of ArborCrowd’s investments and the potential returns you could earn.
Many real estate investment crowdfunding platforms are first and primarily tech enterprises (drawing talent from Google and Uber). Still, others approach the market as real estate operators applying technology to what they currently do.
ArborCrowd, a relatively new newcomer founded by a successful group of existing commercial real estate businesses like Arbor Realty Trust, Arbor Commercial Mortgage, and AMAC, is clearly in the latter camp and is built on an outsourced platform (in this case, via CrowdStreet.)
- Transparent information
- Easy sign-ups
- Thorough vetting process
What Is ArborCrowd?
Let’s say you’ve always considered buying a building with multiple units as an investment. You are, therefore, aware that even for the wealthy, the barriers to entry can be insurmountable.
A multifamily property might cost upwards of $50 million based on location and unit count.
ArborCrowd is a real estate investment crowdfunding platform.
You can combine your money with other investors to buy and sell multifamily properties.
ArborCrowd has already invested in apartment buildings in Brooklyn, New York, and Miami, Florida. Previously, only institutional investors, high-net-worth individuals, and family offices could participate.
So now, people can pool their funds with other investors to get a piece of the investment pie.
ArborCrowd Is The First Real Estate Crowdfunding Platform Created By A Real Estate Institution
Arbor Realty Trust and ArborCrowd are members of The Arbor Family of Companies.
Arbor Realty Trust is a renowned commercial real estate investment trust (REIT), a type of commercial real estate company that generates loans secured by real estate.
Arbor Realty Trust, as a REIT, is mandated to pay 90% of net earnings to stockholders in the form of dividends.
ArborCrowd Functions In A Unique Way
As a division of Arbor Realty Trust, ArborCrowd uses the company’s connections to find promising commercial real estate investments.
ArborCrowd then uses its own funds to make equity investments in the assets before presenting investment opportunities to the crowd via its platform.
This ensures that ArborCrowd has skin in the game. Suppose the platform cannot attract enough prospective investors to return its initial commitment fully.
In that case, the corporation will retain a piece of the deal.
How Does ArborCrowd Work?
It finds business opportunities from developers and dealmakers in the real estate sector who have previously collaborated with the Arbor group.
They purposefully set higher prices to compete with the most popular low-cost platforms (Crowdstreet and RealCrowd).
However, the net worth of the investor is almost the same. They charge an asset management fee (0.25%-0.5%), an acquisition fee (1-1.25%), a disposition fee (1%), and refinance fee (1%). Other sites don’t charge this at the platform level, but the investor does.
So they’re pretty similar to other platforms offering similar investments.
When ArborCrowd finds a deal, it pre-funds it with its own money before offering it on the platform. They’ll wind up controlling part or all of the deal if they can’t acquire enough investors.
This gives them an extra incentive to underwrite successfully, which protects investors. It’s hardly a panacea, though.
The incentive evaporates if a platform fills all its offers rapidly. Many sponsors prefer pre-funding because it gives them more certainty.
ArborCrowd is currently the only equity platform that does this.
The ArborCrowd platform is user-friendly and neatly structured. Even if you’ve never done it before, investing in real estate, stocks, and other assets is a breeze with ArborCrowd. The features of the ArborCrowd platform that make it simple to use are:
Quick And Simple Sign-Ups:
- Creating an ArborCrowd account is a breeze. To start viewing investments, answer a few questions about your credentials and personal information. Creating an ArborCrowd account took me only about 5 minutes.
- Finding old and current projects on ArborCrowd is simple. There are lots of photographs and target estimations to compare. Tax paperwork and offering information are easily accessible and sorted by funding status and availability.
Clear Property Explanations.
- When you click on an investment opportunity, you can learn more about why ArborCrowd’s real estate specialists chose it. Without prior knowledge of the real estate market, you’ll be able to assess each offer’s benefits and downsides quickly.
Overall, ArborCrowd’s investment platform is simple to use and a good starting point for investors who have been intimidated by other real estate crowdfunding sites.
What stands out most about ArborCrowd is the wealth of detail and data it provides about each investment. Here are some examples of the information you can find about each prospective real estate investor:
- Location: ArborCrowd meticulously examines the neighborhood, including population growth, employment variety, and other aspects, before offering a property. In the executive description of each product, you may learn about local amenities, why this place was chosen, and local real estate trends.
- Photos: ArborCrowd invests in multifamily apartment buildings. You may see pictures of the units, exteriors, and common areas. So you don’t have to invest blindly. You can see photographs of the property you’re investing in.
- Market fundamentals: How do real estate experts determine where to invest? For example, ArborCrowd provides a portion of “market fundamentals” that explains why this particular sector was picked. The market fundamentals component of any offer may include employment rates, housing availability and demand, and population growth.
- Financial analysis: Every project’s financial data is easily accessible. Each project’s offering summary or private placement memorandum contains detailed information on debt, equity, expenses, operating income, and more.
- Timeline and business plan: ArborCrowd offers each project’s business plan and schedule. Suppose the property was purchased from a prior owner. In that case, the business plan details how the sponsor aims to produce profits for investors through operational and capital enhancements.
Also, ArborCrowd has a “Learning Center” section where you can read real estate investing articles and press announcements from ArborCrowd.
Previous articles covered the impact of the COVID-19 virus on the real estate market, planning for the subsequent economic slump, and evaluating real estate investment opportunities. The Learning Center is a great resource for both new and seasoned investors.
ArborCrowd Customer Support
ArborCrowd provides several ways to contact customer care.
- By phone: ArborCrowd can be reached at 844-365-1200. The company’s website gives no specified customer care hours.
- By email: Send an email to firstname.lastname@example.org.
- By internal message: Fill out a contact request form to send ArborCrowd an internal memo.
Currently, there is no specific customer support approach for the deaf. I hope ArborCrowd will eventually broaden its phone communications to accommodate investors with disabilities.
ArborCrowd is very quick to email, can arrange video conversations upon request, and has a financial advisor on staff.
ArborCrowd stands head and shoulders above the competition when choosing and analyzing investment opportunities.
Among the Arbor Family of Companies, ArborCrowd is the only one with access to certain real estate opportunities.
ArborCrowd reviews over 500 investment possibilities annually, but only 9 have made it onto the platform.
ArborCrowd only offers investments that pass its rigorous screening procedure, including analyzing the basics, timing, and business strategy.
This approach has some flaws. ArborCrowd usually only offers one real estate investment opportunity at a time due to the extensive research done by the team.
A restricted equity raise indicates an option may be filled before you can invest. However, I believe the benefits of this strategy exceed the disadvantages.
ArborCrowd’s Investment Options
ArborCrowd has previously offered apartment buildings, apartment portfolios, and mixed-use buildings.
These holdings are equity investments with a duration of 2–5 years. All contributions to ArborCrowd must be at least $25,000, and the service is only open to accredited investors.
What Do You Get When You Invest With ArborCrowd?
For each real estate investment made through ArborCrowd, investors receive a membership interest in a limited liability company formed to make that investment.
The LLC owns the land.
ArborCrowd will send you a K1 for each investment you make to report your part of the LLC’s income.
Commercial real estate investments can be complicated, involving several parties.
For ArborCrowd, other investment funds operating as limited partners are also included in the offering paperwork.
For example, additional investment funds engaging as equity owners in the property may have the right to force a sale, so investors should understand the relative control rights.
How Does ArborCrowd Make Money?
The company may have to pay both upfront and ongoing fees for investing.
If you’re looking to invest in an LLC and want to know what expenses will be covered, you should read the offering documentation very carefully.
Can You Make Money With ArborCrowd?
Yes, you can!
There’s a lot that comes along with real estate investments that many people struggle with.
Now, don’t get the wrong idea…
It’s not impossible to make money with Real Estate Investment, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
ArborCrowd has offered three new properties since its inception in January 2016.
People can now invest in an alternate asset class via real estate crowdfunding portals. Affluent investors are no longer constrained to volatile equities and bond markets.
Regulatory Framework For Accredited Investors And Due Diligence Expectations
ArborCrowd only accepts accredited investors (SEC. Reg. D). They are not a registered broker-dealers or an investment advisor.
They stress their involvement in investment curation and selection. Still, their website could use additional details beyond cash flow, local market indicators, and sponsor quality. Notably, they say:
Everything they show you has been reviewed by ArborCrowd’s CEO, with over 30 years in the field.
While a platform’s procedure should not replace your own due diligence, it differs from other platforms that operate more like markets with less curating.
What Are ArborCrowd’s Pros And Cons?
- Advantages: Sponsors (and their affiliates) have a massive 51 percent skin in the game, as well as top-tier due diligence paperwork and full bankruptcy protection.
- Disadvantages: There isn’t much volume. Minimums are set at $25,000 (compared to the industry norm of $5000).
- Accolades: #1 for detailed due diligence paperwork, #1 for the most sponsor (and affiliated-company) skin in the game
I like to see the sponsor contribute capital (“skin in the game”). Sponsors encourage paying without it financially, incentivizing them to take risks.
But significant skin in the game enables them to avoid danger and operate more cautiously. (An ambitious investor may prefer no or little skin in the game.)
As a result, every ArborCrowd sponsor must have significant skin in the game. For example, in their present arrangement, the sponsor contributes 15%.
Affiliates (who maintain sponsor-type rights in deals, like the power to sell at will) increase it to 51%.
It’s good for a conservative investor to manage the fund with such high investment levels.
ArborCrowd Overall Rating
Investing in real estate might be intimidating. ArborCrowd’s crowdfunding concept makes not only real estate investing more accessible but also extremely simple.
I like the platform’s simple sign-up process and clear descriptions of each investment. I also like the rigorous analysis and precise financial data for each service.
ArborCrowd isn’t ideal. ArborCrowd, like several other crowdfunding investment sites, is only limited to accredited investors willing to make a minimum investment of $25,000.
While ArborCrowd’s selectiveness is advantageous for investment choice and investor security, it can also result in a queue if the platform becomes swamped with offers.
I hope ArborCrowd would broaden its customer service services to include people with hearing impairments.
ArborCrowd is an excellent choice for both new and experienced real estate investors.
ArborCrowd’s unique concept has exclusive offers, a robust platform, and a varied selection of underwritten investment opportunities.
Are There Alternatives To ArborCrowd?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
Is ArborCrowd A Scam?
So, time for the $1,000,000 question – is ArborCrowd a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
What Is My #1 Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities like ArborCrowd, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.