Doorvest is revolutionizing the world of real estate investment. It’s an innovative platform that simplifies the process of buying, owning and managing single-family homes as investment properties.
This turnkey rental property and management company offers a personalized marketplace to help investors find a property that matches their investment criteria. With Doorvest, real estate investment is made easier, and you can gain exposure to the rental property market without the hassle of traditional real estate investing.
The platform offers detailed information on properties listed for sale and offers a hassle-free management service in exchange for a fee. So, if you’re looking to invest in rental properties without the stress, Doorvest might just be the answer you’re looking for.
With over $20 million in real estate properties under management, the platform is growing fast and has many happy clients. This Doorvest review will help you learn the basics. If you would like an in-depth look, consider reading Modest Money’s Doorvest review.
Doorvest Review: Pros & Cons
- Comprehensive Investment Solution: Doorvest provides investors with a one-stop-shop for real estate investment, including property selection, renovation, and management.
- Effortless Property Management: Doorvest takes care of the hard work, such as property management and tenant placement, so that investors can sit back and enjoy the returns from their investment.
- Guaranteed Income: With a three-month rental income guarantee, Doorvest provides investors with peace of mind that their property will generate income from the start.
- High-Quality Properties: All properties offered by Doorvest are renovated to a high standard, ensuring that they are ready for tenants to move in right away.
- Higher Investment Cost: With a minimum investment of around $40,000, Doorvest may not be suitable for all investors, especially those with a limited budget.
- Management Fees: Doorvest charges a higher management fee than some other rental management companies, which can impact the overall return on investment.
What is Doorvest?
Doorvest is a San Francisco-based real estate platform that was founded in 2018 with the mission of making investment in residential real estate simple and accessible for everyday people.
The company helps match investors with single-family homes in high-growth markets that offer the potential for both cash flow and appreciation. Unlike other online real estate marketplaces, Doorvest allows investors to buy specific houses and own them for the long term.
The company also offers property management services for the first year after purchase, after which the investor can make their own decisions about the property. The co-founders, CEO Andrew Luong and CTO Justin Kasad, aim to remove barriers to entry for the average investor and provide an easy path to financial security through direct investment in residential real estate.
How Does Doorvest Work?
The process can be broken down into five simple steps:
- Customizing your ideal investment home
- Locking in your investment criteria
- Reserving your home
- Closing on the purchase
- Enjoying passive income
When you sign up for Doorvest, you can select your preferred investing style – appreciation, cash flow, balanced, or open. You’ll also answer a few questions and post a $100 deposit.
Once your preferences are established, a member of the Client Partners Team will get in touch to present investment opportunities. Usually, Doorvest likes to purchase three-bedroom, two-bathroom, single-family houses with two-car garages.
Doorvest Currently operates in the following Cities:
- San Antonio
- Oklahoma City
After you purchase a home through Doorvest, the company manages the rental property for at least one year. They handle rent collections and day-to-day management and charge a management fee of 10% of the rent collected.
If there is no tenant in the rental property, there are no management fees, incentivizing the property manager to find long-term tenants. Doorvest selects trustworthy tenants that have credit scores over 600, household income at least 3 times the rental amount, and positive rental history.
The first year of tenant income is guaranteed by Doorvest, and if the tenant defaults within the first year, the platform will help find a new tenant and guarantee income. You can access all property information and statistics through your Doorvest account. This vertical integration of investment and management offers a top-to-bottom solution for rental property investment.
When it comes to investing in real estate, there are many alternatives to Doorvest. Here are a few options that you might consider:
- Real Estate Investment Trusts (REITs): Another alternative to Doorvest is investing in real estate investment trusts (REITs). REITs are companies that own, operate, or finance income-generating real estate properties. By investing in a REIT, you can participate in real estate investments without having to manage a property yourself. REITs are traded on stock exchanges, so you can buy and sell shares just like you would with any other stock. The drawback is that you do not have much control over the portfolio of real estate holdings.
- Crowdfunding Platforms: Another alternative to Doorvest is investing in real estate crowdfunding platforms. These platforms allow you to invest in real estate projects with as little as $500. The platform will pool the funds from multiple investors to finance the purchase, renovation, and management of a rental property. You will then receive a share of the profits generated by the property.
- Conventional Real Estate Investing: If you have the time, energy, and expertise to manage a rental property on your own, you might want to consider conventional real estate investing. This involves finding a rental property, securing a mortgage, and managing the property yourself. The key here is that you will need to have the experience and know-how to manage a rental property and deal with the day-to-day issues that arise.
If you decide to go the conventional real estate route, you mine as well use the detailed data and analytics at our disposal to locate the best property for you.
One company that offers an all-in-one real estate analytics tool is Mashvisor. If you want to learn more about Mashvisor and try their free 7-day trial, CLICK HERE.
Is Doorvest Right For Me?
If Doorvest is right for you will ultimately come down to individual circumstances and financial goals.
If you want a hassle-free, hands-off way to own a rental property and generate passive income, Doorvest may be a great choice for you.
If you are ready to take the first step towards real estate ownership and earning passive income, CLICK HERE to get started today.