Founded in 2020 by entrepreneur Qian Wang, Collab purchases student housing properties near major universities, then offers shares in these properties to investors. Investors receive monthly dividends from a share of the total rent paid by students living at the property.
Investors don’t invest in Collab’s entire real estate portfolio but rather pick and choose individual properties to buy shares in. Each property has its minimum investment amount, timeframe, and expected return. The minimum investment to open an account with Collab is $500.
Collab is designed for investors who want to diversify their portfolios away from stocks and bonds. It offers a straightforward way for individuals to own a share of student housing properties near major universities. Investors stand to benefit from both the monthly dividend payments from rent and the appreciation of the property’s value.
Unlike real estate investment trusts (REITs), which typically require you to invest in a portfolio of properties, Collab allows you to choose which properties you want to invest in. So, the platform is best suited for investors who are willing to do their research into Collab’s properties and who understand the student housing market around particular universities.
Investors who want to generate consistent cash flow from their investments can benefit from Collab’s dividends, which are paid out monthly. However, investors should have a long-term investment horizon when using Collab. You cannot withdraw your principal for the duration of a project, which may be up to five years or longer in some cases.
Collab has a portfolio of 10 rental properties. At the time of writing, only one of these is available for investors to buy shares. Another two properties are listed as “coming soon” for investment.
Collab opens the investment window for a property for a limited time until all available shares are sold out. After that, the company holds the property for three to five years. During this time, investors will receive monthly dividend payments but cannot withdraw their principal.
Each property has its financial documents. Investors can see a breakdown of a property’s expected rental revenue, operating expenses, debt service cost, and anticipated monthly dividends. Collab also offers 3D tours of its properties.
Collab is open to all United States investors. Here’s how the signup process works.
Collab’s financial documents show the monthly dividend investors expect to receive for each property. For most properties, this is around $0.015 per share (each share typically costs $5). The actual dividend payout may vary based on building occupancy, rent changes, and variations in operating expenses.
Investors cannot access their principal without incurring penalties for as long as Collab holds a property. This is typically three to five years, but Collab’s investment contracts give it the right to hold properties for longer if the company determines it is in the interest of investors.
Collab offers customer support by email, live chat, and a Discord channel. We got in touch by live chat but didn’t receive a response.
The company also has a helpful FAQs page. You can access the offering circular document, which is similar to an investment contract, for each property Collab offers.
Collab is a unique platform that enables you to invest in student housing and collect a monthly dividend from rent payments. You can get started with only $500, and you get to choose which individual properties you want to invest in. Collab requires you to remain invested for the duration of a project, so it’s best suited for long-term investors.
Who owns Collab properties?
Collab purchases properties through a series of limited liability companies (LLCs). Each LLC owns one property. Investors purchase shares in the LLC corresponding to the property they wish to own.
How do you make money with Collab?
Collab offers two ways for investors to make money: dividends and appreciation. Dividends are paid monthly from rent collected from properties (minus operating expenses and debt payments). Appreciation on a property’s value is paid to investors when Collab sells a property.
How does Collab choose projects?
Collab chooses properties to purchase based on market research, on-site property visits, and financial modeling. Investors do not have a say in what properties Collab purchases, but they can decide which properties they want to invest in.
Can you live in a Collab property you invested in?
Yes, you can live in a Collab property you have invested in. However, your investment does not give you any special access to a property or a discount on rent. You must go through the same rental application process as all other tenants.
How do you file taxes if you invest with Collab?
Collab provides investors with an annual K-1 form, which breaks down their distributions from a partnership. Investors are typically required to pay self-employment tax on dividends earned from Collab properties.
525 Green Place, Woodmere, NY 11598
This review is based on information on the Collab website and FAQs documents.