How to get a house for a fraction of what it cost to buy in Arizona
With the help of an online real estate crowdfunding platform, a man hopes to pay off his mortgage with his first-ever home.
Real estate crowdfunding sites like GoFundMe and Crowdsale are offering to lend a person the money they need to buy a home, but often it’s more difficult to get those types of loans when a loan is considered too expensive.
According to a Fox News report, the man is a local real estate broker, who had been trying to get his home for years before he came across GoFundme.
The man decided to use the crowdfunding platform to raise money to purchase his first home.
After posting his bid, he received a response from GoFundMeds CEO Kevin Deutsch who told the man that the house would be worth “a fraction of the price of the median price of a single-family home in the United States.”
According to GoFundME, a home is “a unique asset, valued at approximately $100,000 to $200,000.”
So, with the man’s asking price of $5 million, GoFundmeds would lend him $200 million.
“The home will be located in the city of Fort Collins, Colorado, and the total cost of the house is approximately $1 million, or $2,500 per month,” GoFundmes website said.
“If the sale is successful, we will receive the remaining funds and will be able to purchase the home.”
According the site, the money raised will go to pay the mortgage on the house.
If it is approved, the funds will go into a fund to cover a portion of the cost of buying the home.
The funds go to cover expenses like the mortgage and utility bills, which can be prohibitive.
GoFundums website has even gone as far as to suggest that some investors who want to help out might consider the site for donations.
In a press release announcing the crowdfunding campaign, Gofundums founder Kevin Deutch said the crowdfunding site has helped him raise $4.6 million since the site launched in January 2016.
“In less than three years, we’ve raised more than $2 million, and we’re proud to say we’ve had over 5,000 investors, many of whom have helped us reach our goal,” Deutch told Fox News.
The campaign is still in its early days, and Deutsch said that GoFundms goal is to eventually raise $15 million.
Deutsch has since been unable to raise the funds, but he did offer some guidance for investors.
“First, it is important to note that Gofundms goal for the first $15,000 is $2.5 million.
If the fund has raised over $15k, we would have to start selling houses to cover the loan and utilities,” Deutsch wrote.
“Second, when you are going through the process of raising money, make sure that you have a backup plan in place for when you get an unexpected payment.”
“I’ve heard of people who raised more money through GoFund, but that’s not how it works,” he added.
“When you get a check or bank statement from your lender, we recommend that you go through the GoFund account and make sure your funds are backed up.”
GoFundMe has been a favorite for crowdfunding campaigns since its inception in 2009.
Last year, it launched a program to help low-income Americans get loans to help them buy homes.
According to Gofundme, the company’s goal is “to help people get affordable homes, and get them into the mortgage market faster, with no hidden fees.”