Doorvest Review 2024

Jeremy Biberdorf
By: Jeremy Biberdorf
June 21, 2023
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1/5

1.0 rating based on 5 ratings

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In a nutshell: Doorvest aims to streamline real estate investment and eliminate some of its major pain points. Purchasing an investment property can itself be a headache, not to mention upkeep and property management.

Doorvest’s platform allows you to purchase a rental property and then manage it on your behalf. The main selling point is that—in theory—you’ll save considerable time and stress.

Doorvest now has over $20,000,000 in real estate properties under management, signaling fast growth and plenty of happy clients.

Read on for our comprehensive Doorvest review to learn more about the platform and whether it’s right for you.

Minimum Investment Management Fees
Typically $20,00010%

Doorvest Dashboard

Pros & Cons
Pros
  • Real Estate investing benefits without the headaches
  • Innovative way to earn passive income through real estate
  • Income guarantee (3 months’ rent)
  • Management fees only apply when earning rental income
Cons
  • Limited control over the purchase process and property management

Doorvest Review 2023 | Is Doorvest Right for Me?

Doorvest is a unique, innovative platform that facilitates the purchase and management of real estate. This helps democratize the passive income available through real estate, which can be a huge driver of wealth creation.

Whether it’s right for you, however, will depend on your preferences. It should be noted that real estate investments are generally a longer-term investment. You shouldn’t look at Doorvest as a “get rich quick” opportunity.

Plus, Doorvest is far from the only way to easily invest in real estate, with “e-REIT” companies such as Fundrise picking up steam in recent years.

But if you’re looking for a relatively hands-off approach to owning your own rental property, then Doorvest may be a great option for you. Keep reading to learn about its background, how it works, and its key features.

External Doorvest Review & Ratings

SiteRating
Google My Business4.8 from 19 reviews
Benzinga4

Here are some reviews from traders who have experienced the platform firsthand:

“Great experience overall with my investment with Doorvest. Insurance, lenders companies were all integrated with Doorvest which makes everything smooth. Doorvest was very flexible and even gave me credit due to the first property not being able to appraise and we were able to move forward with another property very quickly.”
“I purchased my first rental property with Doorvest, and I couldn’t be more pleased with the experience. From start to finish, the Doorvest team worked with me every step of the way, making the process stress-free and easy to understand. They kept me informed of all the rental jargon and answered all my questions promptly. I’m so impressed with their professionalism and expertise that I’m already considering buying another property with them. If you’re looking for a team that’s knowledgeable, supportive and committed to helping you achieve your investment goals, look no further than Doorvest.”
“I’ve had a house with Doorvest for a little over 2 years now and their service has only gotten better over time. More streamlined website, clearer communication, and better service. My house has also appreciated quite a bit since then and I’m definitely looking to get a second house with them!”
“I had an extremely great and pleasant experience with Doorvest! As a new first home buyer, the thought of owning my own place and going through the process was daunting. However, the Doorvest team made me feel confident with my decisions and helped me pinpoint areas of opportunities that I didn’t know existed. Aside from that, they were always very helpful, quick to respond, professional, and are very knowledgeable within the space. I would definitely recommend everyone giving them a try, get on a call to chat, and learn more about their offerings! Will definitely become a repeat customer – thanks Doorvest!”

What Is Doorvest?

Doorvest was started by two co-founders, CEO Andrew Luong and CTO Justin Kasad. The initial inspiration came from the fact that there are considerable barriers to entry for the average investor. Most of us intuitively know that rental income is a great investment, but traditionally it takes a lot of time and effort to get started.

So, rather than have to go out and find a rental property on your own, Doorvest arranges for you to buy one virtually. And rather than manage it yourself, or find another company to oversee property management, you can do it all through Doorvest.

How Does Doorvest Work?

Doorvest provides a path to passive income through real estate that comes with much less friction than conventional methods. Here’s a brief breakdown of the five-step process:

1) Customize your ideal investment home Simply answer a few questions so Doorvest can hone in on your ideal investment property.

2) Lock in your investment criteria – Setting up your investment criteria and locking in your agreement means Doorvest can now match you with exclusively curated rental properties.

3) Reserve your home – Once you get matched with a property that’s ideal for you, Doorvest will purchase it, renovate it, and find a long-term tenant.

4) Close on the purchase – This stage involves Doorvest’s Transactions Team, which will work with you to close on your home at Fair Market Value.

5) Sit back and enjoy passive income – Since Doorvest manages the property, all you have to do is enjoy the passive income and ensure that it’s accounted for in your taxes. Note that you may not make a profit for the first year or two.

Doorvest Pricing & Plans

Doorvest earns its money by charging various fees. The first fee is $100, which provides you access to their exclusively curated properties. This also locks in your investment criteria and shows Doorvest you’re serious about investing.

The price of the investment property will vary widely depending on your budget and preferences. In general, however, you should expect to pay at least $40,000.

Once you’ve closed the purchase and you fully own the property, Doorvest charges a 10% fee for day-to-day management.

A Game-Changer for the Modern Real Estate Investor

For many investors, the thought of investing in real estate has always been attractive, but the complexities and time-consuming nature of the traditional process have been a deterrent. Doorvest, with its innovative approach to real estate investing, is changing the game for the modern investor. Here’s why Doorvest might just be the platform you’ve been waiting for.

1. Hassle-Free Investing Experience

One of the primary reasons investors are drawn to Doorvest is the convenience it offers. The platform handles everything from property selection and renovation to finding tenants and managing the property. This takes the stress and time commitment out of the equation, allowing you to focus on other aspects of your life while enjoying the benefits of real estate investing.

2. Diversification of Your Investment Portfolio

Financial experts often recommend diversifying your investment portfolio to spread risk and optimize returns. Doorvest allows you to invest in real estate alongside your other investments, such as stocks and bonds, providing an additional layer of diversification that can enhance your overall financial strategy.

3. Passive Income Potential

Doorvest’s approach to real estate investing is designed to generate passive income for its clients. Once your investment property is up and running with a tenant, you can sit back and enjoy a stream of rental income without having to worry about the day-to-day management of the property. This makes it an ideal option for those looking to create a long-term passive income source.

4. Transparent Pricing and Fees

Doorvest’s pricing structure is transparent and easy to understand, with a one-time $100 fee to access their curated properties and a 10% management fee charged only when your property has a tenant. This straightforward pricing model ensures that you know exactly what you’re paying for and can make an informed decision about whether Doorvest is the right choice for you.

5. Excellent Customer Support

Doorvest has a reputation for providing excellent customer support, with a dedicated team of professionals available to assist you at every stage of the investment process. Their knowledgeable staff can help you navigate the platform, answer any questions you may have, and guide you through the entire investment journey. This level of support can make all the difference for first-time real estate investors or those new to the platform.

Eliminate the Pain Points of Traditional Real Estate Investing

Investing in real estate is known to be a profitable venture, but traditional methods come with their share of challenges. Doorvest addresses these pain points, making the process much simpler, efficient, and hassle-free.

  • Hassle-Free Financial Management: Dealing with paperwork, tracking expenses, and managing finances can be a daunting task for many investors. Doorvest simplifies this process by handling all aspects of financial management, allowing you to sit back and enjoy the returns.
  • Efficient Deal Flow & Analysis: Sourcing and vetting properties is a time-consuming process, and performing due diligence can be quite complex. Doorvest takes care of these aspects, providing you with a curated selection of properties that align with your investment goals.
  • Move-in Ready Properties: Finding the right property, renovating it, and then finding a tenant can take considerable time and money. Doorvest eliminates these steps by offering properties that are renovated and rented out from day one, even guaranteeing the cost of renovations and the initial rental income.
  • Maximized Monthly Income: With unique features like DV Boost and Points Paydown, Doorvest enhances your monthly income, making the platform more attractive for investors seeking consistent passive income streams.
  • Time Saving: From sourcing properties to managing them, Doorvest’s experienced team takes care of all the processes. This lets you reap the benefits of real estate investment without devoting significant time or effort to the process.
  • Benefiting from Partnerships: Doorvest partners with various real estate professionals and mortgage lenders. You can finance your investment through one of Doorvest’s partners or use the Mortgage by Doorvest feature, thus leveraging borrowed capital for potentially higher returns.

By eliminating these pain points, Doorvest makes real estate investing more accessible and profitable. It’s a game-changer for those looking to diversify their investment portfolio with real estate, without the associated challenges of property ownership.

Leveraging Real Estate Investment for Long-Term Wealth

Doorvest’s unique approach to real estate investing not only simplifies the process but also offers a financially advantageous model for those looking to grow their wealth over time. By focusing on single-family rental properties, Doorvest empowers investors to benefit from multiple sources of return: cash flow, equity buildup, tax advantages, and property appreciation.

The Power of Leverage

Leveraging, or the use of borrowed capital, is a key advantage of Doorvest’s investment model. With a mortgage, investors can purchase rental properties with only a fraction of the total cost as a down payment. This allows them to earn returns on the full value of the property, despite having only invested a portion of the purchase price. As the property appreciates in value, the leveraged return can significantly exceed the initial investment.

For example, the average rental home on Doorvest’s platform is valued at $225,000 with a down payment of $56,250. Assuming a conservative appreciation rate of 3% per year, the home will appreciate $6,750 in the first year. When we compare the appreciation to the initial investment, the effective return due to appreciation is 12% ($6,750 appreciation / $56,250 initial investment). This demonstrates the power of leveraging in real estate investments.

Building Long-Term Wealth

Doorvest’s platform is designed to help investors grow their wealth over time, with projected values showing significant growth in equity and overall property value. The combination of cash flow, equity buildup, property appreciation, and tax advantages work together to create a compounding effect, leading to a higher effective return with each additional year.

The projected values for an average rental home on the Doorvest platform are:

  • 1 Year: $8,391 (15% return) + tax breaks
  • 5 Years: $48,826 (87% return) + tax breaks
  • 10 Years: $130,941 (233% return) + tax breaks
  • 30 Years: $1,051,209 (1,869% return) + tax breaks

These values demonstrate the long-term wealth-building potential of Doorvest’s real estate investment model, providing a strong incentive for investors to consider the platform as part of their overall investment strategy.

Doorvest’s Unique Features

While its hassle-free approach to real estate investing sets Doorvest apart, there are a few unique features of this platform that are worth highlighting. These make Doorvest stand out among competitors and can further enhance your real estate investment journey.

1. End-to-End Property Management

Unlike some other real estate investment platforms that connect you with rental properties but leave you to manage them, Doorvest provides end-to-end property management. This includes finding and screening tenants, handling all maintenance and repair requests, and dealing with any other day-to-day property management needs. Their comprehensive service truly sets them apart in the field.

2. Property Renovations

One key feature of Doorvest is that they purchase, renovate, and then rent out the properties before you close on the property purchase. This process significantly reduces your initial outlay and risk since you won’t need to worry about the time and expense of renovations or finding a tenant.

3. Guaranteed Rental Income

Doorvest’s income guarantee is another standout feature. The platform promises you will receive rental income in your first year, even if your property does not have a tenant. This provides a great sense of security for new investors who might be concerned about the risk of a vacant property.

4. Personalized Investment Plan

Unlike many real estate platforms, Doorvest allows investors to customize their investment properties based on their specific financial goals and risk tolerance. You simply answer a few questions and Doorvest uses this information to match you with the perfect investment properties.

5. Hands-On Support and Expertise

Doorvest offers a high level of customer support and expertise, with a dedicated team to guide you through every step of the investment process. From deciding on your initial investment to managing your rental property, Doorvest’s team of professionals is there to help.

6. Transparent and Fair Pricing

Finally, Doorvest is committed to transparency and fair pricing. The platform charges a one-time $100 fee to access their curated properties and a 10% management fee, but only when your property has a tenant. There are no hidden charges or surprising fees to worry about.

These features make Doorvest a compelling choice for those interested in real estate investing but are wary of the traditional headaches associated with property management. Its streamlined, all-in-one approach offers a more accessible and worry-free way to diversify your portfolio and generate passive income.

Is Doorvest Worth It?

Doorvest makes numerous guarantees. Perhaps one of the most important for attracting new investors is their claim that you will receive rental income during your first year. You also only pay the management fee when you have a tenant.

The idea behind Doorvest is brilliant, and it’s no surprise that many people are investing. If you want the passive income from a rental property without the short- and long-term hassle, this is a great option to consider.

Ultimately, Doorvest should be considered a long-term investment. Their own website notes that positive yields may not occur for two or more years, which is not unusual for real estate. Plus, you have to take into account all the heavy lifting Doorvest is doing at the start (curating, purchasing, renovating, placing a tenant, etc.).

If you are fine with the above, then definitely explore their site and see if it’s right for you!

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Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.