Dango estate is one of the fastest growing real estate crowd funding platform in the world., offering investors a chance to venture into the world of crowd funding starting with capital as low as $30.
The Singapore based dango estate offers investors minimum profits of 50% on their investments, making it the highest paying real estate crowd funding platform in the world, which makes one wonder, how does this company manage to pull this off.
But truth is, it’s really not that hard to imagine and understand how dangoestate.com does it once you understand the company’s business model.
Let me break it down for you.
Dango Estate offers short-term loans to real estate developers for real estate projects for refinance, property rehabilitation, bridge loans, and short-term purchases. Short-term loans tend to command higher rates of return.
Private money loans, which may be used for real estate rehabilitation projects, command higher interest rates than traditional lending due to the inherent risk of the project. Such risks may include, but are not limited to, downward trends in the local real estate market significant enough to remove a profit motive for the developer, non-completion of the project, or catastrophe or disaster that destroys the property. On the other hand, these risks are often mitigated by careful due diligence, insurance, and other mechanisms.
So the fact that the company only undertakes such projects, the profits earned are high and therefore able to give back to investors high Returns on Investment. With these kinds of properties, dango estate can manage to pay investors high profits and still be able to stay profitable.
Another question that I see a lot of people asking is the “how dango estate is able to disburse earnings to investors just 24 hours after a person makes an investment”? Let me take some time to explain this too.
Dango estate is one of the few real-estate crowdfunding platforms to pioneer the concept of ‘prefunding’ loans by investing its own money into the loan. Every project that is prefund demonstrates by the copanies confidence in the project, its underwriting process, and the thoroughness of the due diligence.
By prefunding loans, dango estate is able to secure higher interest rates and retain borrowers because they can guarantee quick closings. Prefunding loans leads to a benefit for investors because investors can begin earning interest quickly– one business days after an investment order is placed.
Once you are an active investor with funds on the platform, it can take as little as 24 hours. This way you are not waiting for other investors to commit to full funding, which can take upwards of 45 days or more on other platforms.
Dango estate is totally disrupting the real estate industry taking over the wave of real estate crowd funding. Any smart investor can easily see it as the most viable platform to consider if one is wishes to become a real estate investor.