Will you soon be investing in a Crowdfunded Real Estate Project? Doing your due diligence can prove to be a very well spent amount of time, as this is a big decision. Time and time again, people have forgotten to ask specific critical questions, which then have lead to financial losses. So don't forget to ask these 10 important questions in your due diligence process.

Financial questions

• How much is management taking in various fees?
• -What are the sign-on costs (fees, etc.)?
• -What are the ongoing costs (fees, etc.)?
• -How much is the management company making on an annual basis in this project? Is that on par with what other players in the space are making?
• -Are the management company entitled to the ongoing fees in all cases, even if the project is not making money?
• Is this a project that will give dividends? If yes:
• -What is the expected annual dividend, and how much is that in the percentage of the investment (yield)?
• -How often are dividends to be paid?
• -Are there any covenants hindering the payment of dividends?
• -Does the management company guarantee a minimum dividend?

...14 more questions to ask

Did you know that the 24 questions to ask before investing in a crowdfunded real estate project white paper contains even more relevant questions to ask for this situation? Consider getting it today.