Real estate crowdfunding offers another option for diversifying your financial portfolio.
Crowdfunding offers new and exciting ways to invest in properties without the traditional hassles. A way to diversify your portfolio, it allows you to purchase a property (or a share of a property) as part of a group. If you happen to be in a position where you have only a small amount of money to invest, it may be one option to examine as a way to build your wealth.
What Is Real Estate Crowdfunding?
First things first, what exactly is real estate crowdfunding? In a nutshell, it's an innovative way for people like you and me to invest in real estate projects, whether they be residential, commercial, or even development, without the need for truckloads of cash or going through the intricacies of becoming a landlord.
The Nuts and Bolts: How It Works
So, how does this work? It's all about bringing together a bunch of investors through an online platform, which acts as the go-between for investors and property developers. Think of it like a crowdfunding campaign, but instead of contributing to a creative project, you're investing in real estate. Your money becomes part of a pool of capital using online financial technology, typically with the money paid into a privately held real estate investment trust (REIT) that own various real estate investments.
Here's how it typically works:
What are the Benefits?
Now, you might be wondering, what's so great about real estate crowdfunding? There are a few standout perks:
A Few Words of Wisdom:
1. Due diligence a must: While real estate crowdfunding is a fantastic way to dip your toes into the real estate game, it's essential to do your due diligence. Research the platform you're considering, read up on the project details, and consider seeking advice from professionals.
2. Track records vary: Not all platforms and projects are equal. Some lack a good track record, so be certain to examine their experience and time in the game.
3. Accredited vs. Non-accredited: While some platforms are open to all investors, others may require investors to qualify as accredited investors in order to contribute (annual income is over $200,000 or their net worth is over $1 million).
Real estate crowdfunding can allow you to be a part of lucrative real estate ventures without the traditional headaches. So, if you've been curious about investing in real estate but didn't know where to start, crowdfunding might just be the gateway you've been looking for.
How to Have a Support Team for Fresh Ideas and Diligence
For ideas and support for investing wisely, consider joining the Investors Network Community INC Mastermind Program. Feel free to contact Katy who can answer your questions so you can see if it's a good fit for you.
A Mastermind group is one of the most valuable additions for your toolbox to help you achieve the life of your dreams.
Katy Fleming, Director can be reached by email at email@example.com.