Investor Carrot Real Estate Investing Review

Investor Carrot Real Estate Investing Review

Real estate investors are in constant need of new leads. After all, every deal is a result of lead generation in one form or another. Investor Carrot helps real estate investors obtain the leads they need for their specific investing strategies, using websites that are optimized for the right search terms and that cater to users’ branding and marketing needs.

What Is Investor Carrot?

Investor Carrot was founded by a group of real estate investors who also became internet marketers. During college, they invested in rental properties, mini-storage, and commercial office buildings. Over the course of finding, making, and managing those investments, the group began building websites. They created their first website in 2003 in order to generate free motivated seller leads and have continued to grow their business and their network of websites since that time. Investor Carrot claims to have brought in over 1 million real estate-related leads in the past five years.

Product Specs

Investor Carrot offers a product that is a website or network of websites designed to bring in real estate-related leads that are specifically originated for your real estate business. This means they will design your websites with your brand in mind to help you build credibility while generating leads. While many of the Investor Carrot websites are intended to generate real estate investing leads, the group also works with other entrepreneurs and professionals outside the real estate industry.

Investor Carrot offers websites catering to:

  • Multifamily real estate 
  • Wholesaling 
  • Short sale investing 
  • Note buying 
  • Mobile home investing
  • House flipping 
  • Real estate agents 
  • Custom entrepreneurial designs
  • Investor Carrot also offers a variety of services outside of basic web design and lead generation, including:

  • Free articles 
  • Conversion tracking 
  • PDFs of content 
  • Design themes
  • Pricing

    Investor Carrot offers packages that start at less than $50 a month, but the packages and services rise in cost from there. By comparison, other website services offering basic website templates may be as inexpensive as a one-time $10 fee or rise upward into multiple thousands of dollars. Unlike many web-design providers, Investor Carrot offers a 30-day trial period during which customers can get a refund if they are dissatisfied and the company does not require clients to sign a contract.

    How It Compares

    We picked a few similar products available on the market to see how they compare.

    Products

    Company Logo

    Overall Rating

    Where To Invest

    Investor Carrot

    investor carrot logo

    4.5 Stars

    Fundrise

    fundrise logo

    4 Stars

    Origin Investments

    origin investments logo

    3.25 Stars

    Rich Uncles

    rich uncles logo

    4 Stars


    Investor Carrot

    investor carrot logo

    Minimum Investment

    Because Investor Carrot is a system that generates real estate leads to be leveraged by the real estate investor in whatever manner the investor sees fit, the product may best be viewed as a network of websites. Depending on the client’s needs, Investor Carrot may simply create one website and teach the customer how to leverage their new web presence while, in other cases, the Investor Carrot team may create and implement an entire marketing and lead generation strategy to create brand awareness for the client.Of course, the minimum investment for such services may vary dramatically since Investor Carrot provides highly customized services, but the initial cost is less than $50, making Investor Carrot one of the most affordable lead generation options for your real estate business on the market.

    Account Fees

    Investment Length

    Returns

    Customer SatisFaction

    Should an Investor Carrot client be pleased with their system and opt to keep it or upgrade their account, the monthly fees associated with the account will rise in accordance with the number of services Investor Carrot provides. Clients may keep the “Core” package of $49 per month or upgrade to an “advanced marketer” status that will cost around $150 per month. The advanced marketer status at Investor Carrot offers multiple websites, SEO and lead generation tools, lots of customer support, and a “lead manager” to help the client utilize the leads they are creating, weekly coaching calls, blog posts, strategy consulting, and more.

    The length of an investor’s relationship with Investor Carrot is determined entirely by the investor themselves. Because the service does not require a contract, an investor who is pleased with the results may remain with Investor Carrot indefinitely and one who is not may depart with relatively little notice.

    Investor Carrot is one of the most universally praised real estate investing lead generation tools and services on the market. They have a sound reputation and clients report dramatic results, such as doing four or even 10 times the amount of business they were doing prior to working with Investor Carrot on lead generation for their real estate business.

    It is nearly impossible to find a customer who is not satisfied with Investor Carrot. The company’s aggressive policy of customer service and customized products have created a track record nearly unparalleled in the business.

    Pros

    • Flexible pricing 
    • Great reputation 
    • Custom product
    • Great customer service 
    • Hands-off options

    Cons

    • Requires investor involvement to convert leads

    Fundrise

    fundrise logo

    Fundrise bills itself as the key to building a “more perfect portfolio” in real estate. The company offers the opportunity to invest in real estate even at very low levels of capital and diversifies client investments across multiple platforms. Because Fundrise actively acquires and manages the investments, investors have little to do with the process after the initial investment. Fundrise also offers three types of investment plans for investors who have specific goals for the types of real estate in which they wish to invest.

    Minimum Investment

    Although some Fundrise plans have average investment numbers near $10,000, their “test drive” option requires only $500 for investors to get started. There are fees associated with all the plans, but they are relatively competitive.

    Account Fees

    Investment Length

    Returns

    Customer SatisFaction

    Because Fundrise is an asset manager, there are fees associated with an investor’s account. Offerings come with percentage-based management fees of less than 1 percent and “advisory fees” of 0.15 percent. In some cases, the company will waive this advisory fee. The company notes that the 1 percent fee model for annual fees is “40 percent more cost-efficient than publicly available investments.” Note that account fees vary depending on how much you invest and which investment plan you select.

    Real estate investments are considered inherently illiquid. Whether this is an accurate assessment or not, Fundrise’s minimum time horizon of five years is not unreasonable nor unconventional. What is unusual, however, is the investment company’s policy of permitting investors to “cash out” their shares on a monthly basis with only a 60-day waiting period. Although this option does come with certain limitations specific to the investments in which you are participating, featuring this option at all makes Fundrise a bit unusual.

    Fundrise offers a number of investment options and, with some of these options, they will actually waive your account fees if you do not earn at least a predetermined annualized return. In other cases, the company has been known to pay penalties if it fails to meet other return-related benchmarks. On average, investors receive average annual returns of 13 percent.

    Likely because of their unique approach to real estate investing and the low barrier to entry, Fundrise has a high level of customer satisfaction. It is rare to find a crowdfunding website that permits unaccredited investors and serves those investors with the wide variety of deals and vast knowledge and experience offered by the Fundrise team. The ability to “cash out” on a quarterly basis helps improve morale as well.

    Pros

    • Low barrier to entry 
    • Low account management fees 
    • “Cash out” option quarterly 
    • Good track record of double-digit returns

    Cons

    • You will not own physical real estate, but shares instead  
    • Account fees 
    • You cannot cash out without notice

    Origin Investments

    origin investments logo

    Origin Investments was founded in 2007 and acquires office space and multifamily real estate in eight major metropolitan areas:

  • Atlanta 
  • Austin 
  • Charlotte
  • Chicago 
  • Dallas 
  • Denver 
  • Houston 
  • Raleigh
  • The company claims to have more than $700 million in assets under management and, unlike other online investment platforms, purchases real estate directly. The company keeps teams in place in the physical locations where it purchases real estate. Origin only accepts accredited investors, so the barrier to entry for this investing service is higher than with other similar platforms, and the group provides equity investments and direct-ownership options.

    The two founders currently have $44 million of their own money invested with the company, and compensation for team members is based mainly on fund performance rather than acquisition volume.

    Minimum Investment

    Origin Investments works only with accredited investors, meaning individuals who meet certain requirements concerning their annual income and net worth. The minimum investment with Origin Investments is $100,000.

    Account Fees

    Investment Length

    Returns

    Customer SatisFaction

    Account fees are 1.5 percent per year, which is slightly less than the industry standard of 2 percent per year. However, those fees are annual and last for the life of the investment. This means if you invest the minimum, $100,000, you will be charged $1,500 in account fees for at least six years, which is the minimum length of investment. Investors who invest less than $500,000 will also pay a one-time 3 percent fee over the course of future distributions.

    With an investment length of at least 72 months (six years) and an outer limit of eight years, Origin Investments is not for the investor who values liquidity.

    Origin Investments has posted relatively high returns for its investors for more than a decade. While it does not promise or post returns publicly, research indicates it posted internal rates of return (IRR) of 24 percent across its first two funds.

    Origin’s investors seem relatively pleased with Origin Investments, likely due to the company’s substantial “skin in the game” thanks to the two co-founders’ $44 million invested and the company’s highly personalized service. Origin also offers a new-investor satisfaction guarantee that permits investors to recoup up to $250,000 if they are dissatisfied and meet certain qualifications within the first year of their investment.

    Pros

    • Long track record 
    • Positive performance history 
    • Multiple market presences 
    • Satisfaction “guarantee” for new investors

    Cons

    • High barrier to entry 
    • Low level of liquidity 
    • Higher fees for lower investment capital

    Rich Uncles

    rich uncles logo

    Rich Uncles bills itself as “real estate investing for everyone” and lives up to the name by offering a minimum investment of just five dollars. The company invests in real estate investment trusts (REITs) and student housing properties. Investors receive shares in these investments which, long-term, tend to perform more steadily than other types of real estate, which may fluctuate more as the national housing and real estate markets shift. When an investor works with Rich Uncles, the company buys properties, then collects rent and distributes that rent to their investors each month from the rental income.

    Minimum Investment

    Rich Uncles has been promoted as easily accessible for everyone who wishes to invest in real estate because of their $5 minimum investment but, realistically, investors should plan to place a minimum investment of $500. This is still extremely low on a relative scale.

    Account Fees

    Investment Length

    Returns

    Customer SatisFaction

    Rich Uncles does not charge account fees. The company pays out the first 6.5 percent of profits to shareholder but then receives 40 percent of the profits once investments exceed that hurdle.

    Investors with Rich Uncles can redeem their shares at any time by selling their shares back to the company. Current market conditions will affect how much an investor receives per share. This flexibility is good, but investors should plan to leave those shares invested for multiple years in order to generate the highest returns.

    Rich Uncles only gets paid if shareholders are also making money, but the company has not been around very long, making it hard to track returns. The benchmark of 6.5 percent returns to investors before the company makes any money makes the likelihood that investors will gain returns good but, compared to other options, these returns are average.

    Rich Uncles does not have a very long track record and, outside of company-provided reviews, there are not many customer complaints or instances of praise out there. One review does indicate there may be more to cashing out your shares than initially meets the eye, with a solitary customer reporting they did not get the expected 6.5 percent (which is not guaranteed) and that they had to pay 20 percent to cash out their shares. However, given that cashing out REIT shares is market-dependent, this would not be an unusual condition for redemption.

    Pros

    • Low barrier to entry 
    • Historically strong investment vehicles 
    • Benchmarks for investor profits before company makes money 
    • Monthly dividends

    Cons

    • Long-term investment 
    • May have hidden fees 
    • Monthly dividends are not guaranteed

    Investor Carrot Is Ideal for Active Real Estate Investors

    When it comes to providing a service for active real estate investors, we have to give Investor Carrot five stars for its customer service, customized product, and high volume of qualified leads generated for clients. Passive investors may prefer more traditional crowdfunding or private equity options, but active real estate investors will pick Investor Carrot every time.

    Post Comment

    This site uses Akismet to reduce spam. Learn how your comment data is processed.