With rising rental prices, many people are trying to get into the real estate game. But let’s be honest; it can be a real hassle. There’s finding a property, dealing with tenants, and managing all the details.
So, have you heard of Doorvest? It’s a real estate investing platform that’s supposed to simplify the whole process.
They help you with everything – from buying the rental property to finding and managing tenants. Of course, there’s a fee involved, but it could be worth it if you’re short on time.
The idea is that Doorvest lets people grow their real estate investments without becoming experts in being a landlord.
It’s worth exploring this up-and-coming company to see if it’s a good fit for busy investors like you.
Let’s dive into this Doorvest review and see what it’s all about.
What is Doorvest?
Doorvest was founded by two folks, Andrew Luong and Justin Kasad, in San Francisco. They realized that investing in real estate can be a real pain for most people.
We all know rental income can be an excellent investment, but it takes work to start, right?
That’s where Doorvest comes in. Instead of having to go out and hunt for a rental property yourself, they set you up to buy one virtually.
You don’t need to deal with the management because Doorvest handles it for you. It’s like a one-stop shop for real estate investing.
They’ve been around since 2018 and started in Houston, Texas. Now, they’re expanding to other cities across the U.S., managing over $20 million in assets and raising $92.5 million in funding.
How Does Doorvest Work?
So, you’re probably wondering how Doorvest works. Well, this five-step process is designed to make real estate investing way smoother than the traditional route. Let’s break it down for you:
- First, you’ll answer a few questions about your ideal investment property. That way, Doorvest can get a feel for what you want.
- Next, you’ll set your investment criteria and lock in your agreement. It helps Doorvest match you with the perfect rental properties just for you.
- Once you find a property that suits your needs, Doorvest takes care of the rest. They’ll buy it, fix it up, and find a long-term tenant for you.
- Then, it’s time to close the deal. Doorvest’s Transactions Team will work with you to make sure everything goes smoothly, and you close on your new home at a fair market value.
Finally, you get to kick back and enjoy some passive income. Doorvest manages the property, so all you need to do is sit back, relax, and account for the income in your taxes.
Remember, you might not see a profit immediately – it could take a year or two.
Features of Doorvest
As a real estate platform, Doorvest offers some commendable features. Let’s breeze through some of these key features.
1. Investor Portal
At the core of Doorvest is their Investor Portal. This is where you can see a detailed breakdown of your monthly rental income.
You can check out both past and current activity and your property and portfolio value. Plus, you’ll have access to important legal documents and reports, like expenses and net rent.
2. Geographic Availability
Now, at the moment, Doorvest is only available in six markets: Columbus, Atlanta, Oklahoma City, San Antonio, Dallas, and Houston. They have plans to expand, but there’s no specific time frame or details about which markets they’ll head to next.
You don’t need to live in one of those cities to invest in a rental property through Doorvest.
3. Tenant Guarantee
Doorvest also offers some sweet guarantees. For instance, they ensure you’ll receive rental income during your first year. They don’t charge resident placement fees. So, you’ll only pay a management fee when you have a tenant.
They’ll also take care of getting the property ready for your new tenant by renovating it. Doorvest even covers renovation costs during the first year by up to $25,000. However, there are some repairs they won’t cover, like electrical issues.
You should read our detailed post on First National Realty Partners if you’d like to know how Doorvest compares with other services regarding features.
Doorvest Pricing
They charge a few different fees, starting with a $100 fee to access their curated properties. It helps them know you’re serious about investing and locks in your investment criteria.
The actual investment property price can vary quite a bit, depending on what you’re looking for and your budget. But, generally, you should be prepared to spend at least $40,000.
After you’ve bought the property, Doorvest charges a 10% fee for handling the day-to-day management stuff.
Pros of Doorvest
- Provides an alternative investment option
- Offers an innovative way to generate passive income
- Comes with an income guarantee of 3 months’ rent
- You only pay management fees when you’re earning rental income
Cons of Doorvest
- No mobile app is available yet
- Requires a commitment of one year for management fees
- You have limited control over the purchase process
Is Doorvest Right for You?
Now, you might be wondering if Doorvest is worth it. They offer some guarantees, like ensuring you get rental income during your first year. Plus, you only pay the management fee when you have a tenant.
The concept behind Doorvest is solid, and it’s no wonder people are jumping on board. This could be a great option if you’re looking for passive income from a rental property without all the headaches.
Just remember that Doorvest is more of a long-term investment. Their website even says you might not see positive returns for a few years, which isn’t uncommon in real estate.
And remember, they’re doing a ton of work upfront, like finding the property, renovating it, and getting a tenant there.
If all of that sounds good to you, Click here to check out their website to see if Doorvest fits your real estate investment needs.
