Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in single-family homes
Invest in startups and venture funds
The minimum investment on Doorvest is a 25% down payment on a home, averaging $56,250 based on the average home price of $225,000.
The minimum investment amounts on the OurCrowd platform are as follows: $10,000 for individual company investments, $5,000 per company with a $25,000 balance transfer for a Portfolio Select Account, and $50,000 for investing in OurCrowd funds.
Investing with Doorvest involves risks such as market volatility, economic changes, and property-specific issues. While the platform aims to manage these effectively, outcomes can be uncertain, and investors should carefully consider their risk tolerance and conduct due diligence before investing.
Investing via OurCrowd carries risks, including the potential loss of capital, market fluctuations, and limited liquidity. Early-stage companies may not succeed, leading to a total or partial loss.
Doorvest allows investors to sell their homes back to the platform, requiring them to connect with a client partner for more information on the process.
Investments on the OurCrowd platform are generally illiquid, as they involve early-stage, privately-held companies. Liquidity events, such as a sale or IPO, may take several years, and there is no guarantee or secondary market for trading these investments. Investors should be prepared for long-term commitments without immediate liquidity options.
Doorvest reports an average annual investment return of 18%, accounting for rental income, property appreciation, and mortgage leveraging.
Returns on investments in OurCrowd's early-stage companies and venture funds are highly variable and unpredictable. While there is potential for high returns, given the speculative nature of startup investing, there's also a significant risk of loss.
Doorvest focuses on long-term investments in single-family rentals, generally suggesting a commitment of several years to decades, based on real estate appreciation and rental income.
Investments through OurCrowd typically require a long-term commitment, often spanning several years to over a decade, due to the nature of startup and venture fund investing.
To invest with Doorvest, you need to be in the U.S. or able to sign documents at a U.S. Embassy.
OurCrowd investments are open to accredited investors as per local regulations, which vary by country. However, residents of Cuba, Iran, Lebanon, North Korea, Syria, and the Crimea Region of Ukraine are excluded from investing through the platform.
Real estate assets on Doorvest can experience volatility due to economic shifts, interest rate changes, and local market trends, potentially affecting investment values and posing risks for short-term investors.
Assets on OurCrowd, being early-stage and privately-held companies, are highly volatile. Their valuations can fluctuate significantly due to market dynamics, competition, and operational risks.
Doorvest complies with the Texas Real Estate Commission (TREC) consumer protection notice, indicating adherence to state-level real estate transaction standards. It does not provide details on broader financial regulations or audits, focusing more on real estate industry compliance than securities regulation.
OurCrowd complies with the regulations of each country it operates in, adhering to laws governing accredited investors and investment platforms. It is subject to regulatory oversight, ensuring transparency and investor protection. While not specified, financial audits and compliance checks are likely part of its operations to meet legal and financial standards, maintaining trust and reliability among investors.
Doorvest protects rental investments with homeowner's insurance, covering physical structure damage and potentially extending to personal belongings and medical expenses. This coverage is a mortgage lender requirement, safeguarding against various damages, though investors should be aware of any coverage limitations.
OurCrowd does not offer insurance for investments on its platform. Investments in startups and venture funds are inherently risky, with no insurance protection against losses.
Doorvest offers rental income as returns to investors, bolstered by a Rent Guarantee that includes vacancy and non-payment protection for the first three months, with an option to extend up to 12 months. Additionally, a Renovation Guarantee covers repair costs for the first year of ownership.
Investors on OurCrowd typically do not receive dividends from their investments in startups and venture funds, as these are growth-focused and aim for capital appreciation. Profits are usually reinvested to fuel further growth.
To get their money back, Doorvest investors need to sell their property, with the timeline depending on market conditions and the sale process. The process is initiated through Doorvest, and funds are received after the property is sold and the transaction is completed.
Investors on OurCrowd can get their money back during a liquidity event such as an IPO, acquisition, or sale of the company.
Doorvest employs a fee model, deriving revenue from a portion of the monthly rental income and margins on home sales, always at fair market value.
OurCrowd's fee structure includes a 2% annual management fee for the first four years, capped to cover investment management costs. Additionally, there's a 4% upfront administration fee for direct SPV expenses, with the possibility of extra reimbursement set off from returns upon distribution. Carried interest entails a 20% fee on profits up to 5x the invested amount, escalating to 25% for proceeds exceeding 5x.
Doorvest facilitates tax compliance by providing investors with all necessary documentation for tax filing, related to real estate investment income and expenses.
OurCrowd offers investors an annual statement, which is essential for tax reporting. This statement details the year's financial activities, aiding in accurate tax filings.