Doorvest is a new start-up company that simplifies the real estate investing process. If you’re looking to invest in real estate but be a hands-off type of landlord, Doorvest might be for you.
How Doorvest Works
Doorvest takes care of purchasing a property, making repairs, and finding a tenant – all before you ever make a purchase. You tell them what you’re looking for, and they do the rest. Once your investment is ready, you close on the property, paying roughly a $30,000 down payment, and Doorvest manages it for you for a monthly 15-percent property management fee.
Sounds simple, right?
For the right investor, it is.
Doorvest targets two types of investors: the career professional and the new investor. Since the investor hardly needs to lift a finger or even know anything about real estate investing, it’s understandable that these groups would be their target clientele.
The Pros and Cons of Doorvest
From an ease of use standpoint, Doorvest ranks high. From start to finish, the investor needn’t do much more than hand over his money at closing. Doorvest even offers a one-year income guarantee as well as covering any repair costs in the first year. The ease with which new investors can break into the world of real estate investing through Doorvest and the year-long guarantees make this a tempting opportunity.
It’s important to remember, however, that Doorvest is a brand-new company, and as such, has a huge potential for failure. This fact alone makes investing with them risky, as their failure could leave you scrambling to stay afloat. Furthermore, at this point, Doorvest only operates in one market – Huston, Texas – and although Huston is a great place to invest in real estate, being limited to only one market makes investing with them even riskier.
Finally, if you’re hoping to learn the ropes of real estate investing, Doorvest is not the way to go. Because they do everything, you never learn the ins and outs of investing, which can leave you in the lurch later on.
If you’re wanting to break into the world of real estate investing and you aren’t so much concerned with a limited market or learning the ropes, Doorvest makes things simple.