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I would suggest re-working your website. There are sections that are hidden due to color choices. It took me awhile to realize that there was even a login butto
by jetti 7y ago
I would suggest re-working your website. There are sections that are hidden due to color choices. It took me awhile to realize that there was even a login button on the page. Also, I'm confused on what the map of the US with various colors is for, it is just there.
I think it is irresponsible of you not to disclose the risk involved in this to potential users. You even make comments such as:
"How likely is it for the property to appreciate over time?
While appreciation it is not guaranteed but there is a high likelihood that real estate appreciates over time assuming a minimum investment duration of 5 years."
There are a lot of factors that go into whether or not a property will appreciate over time and you don't list any of those or give any sort of details. You are letting people pick their own property in areas that you, presumably, have no knowledge of market conditions but yet you are saying that it is highly likely that people will gain appreciation in their property.
In the FAQ you also state:
"Would you say this is similar to Landa?
The difference is we allow individual users to invest together in a property, we don't necessarily own the properties instead we facilitate the investment process."
What conditions do you own the properties? What part of the investment process do you facilitate? On your landing page you state:
"
Invest With Others
AlphaCap allows anyone to buy equity in any real estate property that is on sale, once 100% of the purchase price is funded we purchase the property on your behalf and manage the property and start sending you monthly rental income.
"
It says you purchase the property on the customer's behalf but who is the property registered to? Is it your company until all the money is repaid? Is it all of the people investing in the property?
You also state in your FAQ as one of the benefits:
"
Best part is you can use other people's money as leverage to buy much more property, and if the deal makes sense at the time of purchase/deal analysis, you won't be over-leveraged and will stand to make money, with multiple exits as options."
First off, I find this irresponsible by suggesting people take on large amount of risk while not even mentioning the amount of risk that they could be taking on. And what does it mean: "if the deal makes sense at the time of purchase"? Make sense to who? Speaking of risk, there is not a single spot on your landing page or your FAQ that even has the word "risk".
Lower in your FAQ you state:
"What happens in case of a massive destruction by the tenant?
There is insurance on the property and there is deposit required for tenants. As part of the management process we also vet tenants before they move in. For any damages we will deduct the cost from the tenant's deposit."
So are you also a property management company? If so, are people who buy partial real estate through your site bound to use you as the property management company or could they go and pick another management company if they want.
"What happens is a property is bought, but you can't rent it? Who pays the bill of the empty place?
Typically we have a vacancy rate of less 10%, we do our best to rent the property as quickly as possible to the most qualified tenant."
You don't even answer the question. Who is responsible? What does "as quickly as possible" mean in this situation? To me, it sounds like you would drop below market rates to fill a vacancy.
Something that isn't covered in your FAQ is maintenance. Who is in charge of that? If a plumber is needed do I have to pay for that?
I realize I may be coming off as harsh or abrasive and for that I'm truly sorry but as your site stands it seems to be made to take advantage of those with minimal real estate knowledge hoping to invest their money. You don't have mention how you make money, you don't mention that there is risk and it seems like you contradict yourself in many areas on the site.