•  Real Estate

Awning Review -- find and invest in single-family rental properties

Awning is an app for finding single-family rental properties in specific markets (currently several major metros in California and Texas). Awning acts as the brokerage and refers buyers to local property managers.

Awning

  • Investment Types: Real Estate
  • Sectors: Residential Real Estate
  • Open to all investors
 Pros
  • Open to all investors
  • Curated property search tied to individual investment plan
  • Partnership with lenders and property managers
 Cons
  • Buying a rental property typically requires at least 20% of the purchase price, plus closing costs
  • Even if using a property manager, direct property ownership is inherently more of an active investment than indirect via crowdfunding
  • Properties currently available only in California, Texas, and Florida

Overview

This Awning Review will help you learn more about Awning's investment offerings, including how the alternative investments on Awning are structured, and what your potential returns might be. You can read more about the criteria we use to review investment platforms here.

Awning is not, technically speaking, a “crowdfunding” platform. But many investors exploring crowdfunding and online alternative investments are looking for opportunities in real estate, and Awning is among several sites looking to make searching for and buying direct rental properties much more like ecommerce and crowdfunded investing.

After signing up with Awning and completing the onboarding process, Awning connects investors with an advisor to assist in the investment process.

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Types of investments Awning offers

Awning is an online marketplace for buying and selling single-family rental properties. Investment categories offered by Awning include steady income, high appreciation, and short-term rentals (for investors who are looking to by a home for listing on AirBnB or VRBO).

What do you get when investing with Awning?

Awning can help you identify and purchase local rental properties; if you choose to invest you will be purchasing a physical property (a single-family home) not an investment security.

How does Awning make money?

Like a standard real estate brokerage, Awning earns commissions on the property sales, typically 2.5-3% of the total sale price. Awning does not advertise any additional fees on its website.

Potential returns and cashflow

The specific returns from any particular property will vary greatly based on factors like ownership and maintenance expenses, rental income, vacancy rates, and property value fluctuations.

Breadth of offerings on Awning

Awning currently offers properties in several major metropolitan areas in California, Texas, and Florida. Properties are sourced via the MLS (multiple listing service) system.

Regulatory framework and due diligence expectations

Because you’re purchasing an actual property, rather than a security, the transaction is not governed by SEC rules as with most of the investment crowdfunding and online alternative investment platforms we review. Instead, a purchase via Awning is subject to the particular laws of the state and county where the property is located.


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