Business

Is Real Estate Crowdfunding Worth It?

Published

2 years ago

August 26, 2023

Real estate crowdfunding has become an increasingly popular way for investors to get involved in real estate deals that were previously only accessible to wealthy individuals or institutional investors. Through real estate crowdfunding platforms, investors can pool their money with others to invest in commercial or residential properties for a share of the rental income, profits from a sale, etc. While real estate crowdfunding offers exciting opportunities, it’s understandable that investors have questions about whether it’s really worth it. There are pros and cons to evaluate when deciding if real estate crowdfunding aligns with your investment goals and risk tolerance.

Lower Investment Minimums Open Access

One of the biggest benefits of real estate crowdfunding is that the investment minimums are much lower than what you would need to invest on your own. Whereas investing in physical real estate properties often requires tens or hundreds of thousands of dollars, real estate crowdfunding deals can have minimums from $500 to $10,000. This allows investors who don’t have tons of capital to diversify into real estate. Rather than saving up for years to buy one rental property, you could invest small amounts into multiple properties now. Real estate crowdfunding democratizes access to deals that were previously only available to the wealthy.

Portfolio Diversification

In addition to lower minimum investments, real estate crowdfunding makes it simpler to build a diversified real estate portfolio. Choosing which properties to purchase on your own requires extensive research to select assets in different markets, with different strategies (residential vs. commercial), and in different parts of the real estate cycle. With crowdfunding, you can browse pre-vetted deals online and invest in a range of real estate projects to mitigate risk. Geographic diversification is easier through national and global crowdfunding platforms. Balancing residential, commercial, retail, and other types of real estate projects lets you diversify across sectors.

Passive Income Potential

Many investors are attracted to real estate crowdfunding for passive income opportunities. Rather than taking on the responsibilities of being a landlord, you can earn income from properties you invest in through a crowdfunding platform without having to do the hands-on work. Top real estate crowdfunding platforms handle property management, leasing, maintenance, legal compliance, rent collection, and more. You get the benefits of income generation without the day-to-day management burden. Real estate investments can produce steady cash flow month-over-month or via annual dividend payments.

Professional Vetting

Leading real estate crowdfunding platforms have teams of experienced professionals who vet each deal before listing it for everyday investors. They conduct due diligence to assess risks, validate business plans, evaluate sponsors/developers, audit financials, look at comparable deals, etc. This expert pre-screening gives investors more confidence. You can lean on the knowledge of these teams who assess potential investments full-time rather than figuring it all out solo as an individual investor. Their strict listing standards also weed out less attractive opportunities. In addition, you also get to enjoy real estate crowdfunding tax benefits.

Drawbacks To Consider

While real estate crowdfunding offers some excellent benefits, there are a few potential drawbacks to consider as well:

Illiquidity: Most real estate crowdfunding investments are illiquid, meaning there isn’t an easy way to cash out your investment right away. You may have to hold it to maturity.
Lower returns than direct ownership: The tradeoff for passive real estate investing is that returns are typically a bit lower than owning and managing properties yourself.
Risks still exist: Vetting and diversification reduce risks, but real estate losses are still possible if deals don’t pan out as expected.
Fees: Platform fees, fund management fees, carry charges, etc. can erode returns to some degree.
Tax headaches: You’ll likely receive multiple K-1s to report profits/losses, which can complicate taxes.

Is Real Estate Crowdfunding Right For You?

If you don’t have hundreds of thousands to invest, real estate crowdfunding allows you to gain exposure to assets that would be otherwise out of reach. It’s an easy way to build a balanced portfolio across different markets and sectors. Though returns may be a bit lower than direct ownership, passive income can be attractive for hands-off investors. Weigh the benefits and drawbacks relative to your specific investment objectives. For many, real estate crowdfunding does provide strong risk-adjusted returns and portfolio diversification without requiring huge upfront capital. If you take the time to evaluate offerings and diversify prudently, it can absolutely be worth considering.

Business

Derik Fay and the Quiet Rise of a Fintech Dynasty: How a Relentless Visionary is Redefining the Future of Payments

Published

4 days ago

October 17, 2025

Matthew Wiles

Long before the headlines, before the Forbes features, and well before he became a respected fixture in boardrooms across the country, Derik Fay was a kid from Westerly, Rhode Island with little more than grit and audacity. Now, with a strategic footprint spanning more than 40 companies—including holdings in media, construction, real estate, pharma, fitness, and fintech—Fay’s influence is as diversified as it is deliberate. And his most recent move may be his boldest yet: the acquisition and co-ownership of Tycoon Payments, a fintech venture poised to disrupt an industry built on middlemen and outdated rules.

Where many entrepreneurs chase headlines, Fay chases legacy.

Rebuilding the Foundation of Fintech

In the saturated space of payment processors, Fay didn’t just want another transactional brand. He saw a broken system—one that labeled too many businesses as “high-risk,” denied them access, and overcharged them into silence. Tycoon Payments, under his stewardship, is rewriting that narrative from the ground up.

Instead of the all-too-common “fake processor” model, where companies act as brokers rather than actual underwriters, Tycoon Payments is being engineered to own the rails—integrating direct banking partnerships, custom risk modeling, and flexible support for underserved industries.

“Disruption isn’t about being loud,” Fay said in a private strategy session with advisors. “It’s about fixing what’s been ignored for too long. I don’t chase waves—I build the coastline.”

Quiet Power, Strategic Depth

Now 46 years old, Fay has evolved from scrappy gym owner to an empire builder, founding 3F Management as a private equity and venture vehicle to scale fast-growth businesses with staying power. His portfolio includes names like Bare Knuckle Fighting Championships, BIGG Pharma, Results Roofing, FayMs Films, and SalonPlex—but also dozens of companies that never make headlines. That’s by design.

Where others seek followers, Fay builds founders. Where most celebrate their exits, Fay reinvests in people.

While he often deflects conversations around his personal wealth, analysts estimate his net worth to exceed $100 million, with some placing it comfortably over $250 million, based on exits, real estate holdings, and the trajectory of his current ventures.

Yet unlike others in his tax bracket, Fay still answers cold DMs. He mentors rising entrepreneurs without cameras rolling. And he shows up—not just with capital, but with conviction.

A Mogul Grounded in Real Life

Outside of business, Fay remains committed to his role as a father and partner. He shares two daughters, Sophia Elena Fay and Isabella Roslyn Fay, and has been in a relationship with Shandra Phillips since 2021. He’s known for keeping his personal life private, but those close to him speak of a man who brings the same intention to parenting as he does to scaling multimillion-dollar ventures—focused, present, and consistent.

His physical stature—standing at 6′1″—matches his professional gravitas, but what’s more striking is his ability to operate with both discipline and empathy. Fay’s reputation among founders and CEOs is not just one of capital deployment, but emotional intelligence. As one partner noted, “He’s the kind of guy who will break down your pitch—and rebuild your belief in yourself in the same breath.”

The Tycoon Blueprint

The playbook Fay is writing at Tycoon Payments doesn’t just threaten incumbents—it reinvents the infrastructure. This isn’t another “fintech startup” with a flashy brand and no backend. It’s a strategically positioned venture with real underwriting power, cross-border ambitions, and a founder who understands how to scale quietly until the entire industry has to take notice.

In an age where so many entrepreneurs rely on noise and virality to build influence, Fay remains a master of what can only be called elite stealth. He doesn’t need the spotlight. But his impact casts a long shadow.

Conclusion: The Empire Expands

From Rhode Island beginnings to venture boardrooms, from gym owner to fintech force, Derik Fay continues to build not just businesses—but a blueprint. One rooted in resilience, innovation, and long-term infrastructure.

Tycoon Payments may be the latest chess piece. But the game he’s playing is bigger than one move. It’s a long game of strategic leverage, intentional legacy, and generational wealth.

And Fay is not just playing it. He’s redefining the rules.