Fraquest is promising investors yet another pie of the real estate wealth via fractional real estate investment.
The company is promoting its platform as the go-to marketplace for investors looking to own fractional shares in prime global real estate properties.
But is Fraquest truly a shared real estate investment platform or just another real hype for investors to dump their money?
Let’s take a look.
What is Fraquest All About?
Fraquest wants to democratize real estate investing by helping investors purchase small shares of large real estate holdings.
This isn’t new, but Fraquest is not just creating the opportunity, they are creating access, the platform, the tech and the tools, for almost anyone to start investing in real estate.
What Makes Fraquest Stand Out?
The biggest takeaway is that Fraquest wants to remove the barriers for anyone to start investing in real estate.
As we all know, real estate investment is usually exclusive to the rich, but what if anyone with as little as $50 could start owning shares in real estate holdings.
This is quite different from REITs, as Fraquest is curating prime real estate properties with recurring earning potential in terms of rental income.
How Do You Make Money With Fraquest?
Investors can make money with Fraquest via rental income, depending on their share of the investment portfolio.
With opportunity to invest across a wide range of properties, investors could create period cashflows coming from their investment.
How To Invest With Fraquest
Though Fraquest is still in beta mode, interested investors simply have to sign up on their website, verify their accounts, and start browsing expert-curated real estate investment opportunities.
The minimum amount to start investing is just $50 which is ridiculously low for this type of investment opportunity.
How Much ROI Does Fraquest Offer?
The ROI you get from Fraquest would depend on the type of property you are investing in and the size of investment fraction, but mostly based on rental income.
For example, commercial real estate properties would likely earn more in rental income than residential properties.
So, the ROI isn’t guaranteed, and investors also have to consider losses in terms of rental delays.
Is Fraquest Legit or Scam?
With these types of investments, you never can tell if they are legit or scams.
The onus is on investors to scrutinize the investment opportunity and do their own due diligence to ascertain legitimacy.
What I like About Fraquest
The biggest positive about Fraquest is that it is quite an innovative product, in a space that is highly in need of innovative.
Also, Fraquest seems to be creating an avenue for small investors to invest sustainably in the long-term.
What I Dislike About Fraquest
No clarity on liquidity.
I don’t know if Fraquest would have a feature for investors to liquidate or sell their fraction of real estate investments.
So far, the platform is still testing the waters, so this might come later in the future.
If that feature is made available, then that would be a game changer.
Can You Lose Money With Fraquest?
As with investments of this type, it is possible to lose money.
Real estate investment can be quite stable, but it also comes with some form of risk.
Government regulations might change, rental income might slow down, or the real estate property could actually be a bad one.
So, it is important for investors to scrutinize every real estate opportunity offered on the Fraquest platform before investing their money.
Should You Invest With Fraquest?
It seems to be a good opportunity to invest, especially if you’re a small investor looking for long-term passive income.
With less than 50k Naira, you could own a share of a real estate property. Isn’t that cool?
But ensure you make all the right enquiries and be clear about all the details of the investment before parting with your hard-earned money.