The latest CNBC Quarterly Investment Guide mentioned shares in crowdfunding projects that remodel homes or purchase commercial property among the ways to multiply the chances to have a hassle-free retirement.
What kinds of projects can a crowdfunding real estate investing platform offer?
Equity crowdfunding: this is the scenario when dividends are made up of rental income. Usually, equity crowdfunding investors have a proportional share of real estate and make money based on both rental profits and when the house or commercial property is purchased.
Debt crowdfunding brings dividends that are about interest income made off of mortgage payments on a particular property or portfolio of projects. In such a situation, you as an investor earn nothing extra when the real estate gets sold. Neither you have a proportional share of any property you invest in.
If you’re considering jumping onto crowdfunding real estate investing wagon, here’re the pros why you should do this.
Further, we will explore together the benefits of investing in real estate crowdfunding.
Why invest in real estate crowdfunding
1. Portfolio diversification
Yes, you will hear it often: investing in different types of projects is one of the ways to manage risks.
One of the first things most investors hear is that they need to diversify their portfolio: keep money safe and never put all the eggs in just one basket.
Real estate crowdfunding projects can bear fruit in the long run and bring your substantial dividends.
There’s no secret that stocks (especially international ones) are quite volatile and you’d better have a certified financial advisor doing the heavy lifting for you to achieve the best possible outcome.
There’re tons of sites where you can read reviews from people who used the service and reflect on their experience in testimonials.
Depending on your risk tolerance, you can choose among residential or commercial project types do not boost return, but reduce the risk.
2. Low-base start
Long time back only high net individuals could afford to make money on real estate.
Now it’s no longer the valid notion since crowdfunding for real estate investing made it easier for commoners to have their piece of the pay with lower budgets to entry the game.
Today you don’t need to have millions to explore what innovative crowdfunding platforms have to offer.
The entry budget could be as low as a couple of thousands of dollars.
It’s a good idea to enhance your net worth in the future by adding a couple of high-flying real estate project that promises a stable return over the years, isn’t it?
With such favourable conditions, you don’t need to grow the debt and borrow money from family or friends.
To top it off, consider a crowdfunding real estate investing platform of your choice as an opportunity to play around the risk once again.
3. Make your neighbourhood better
Crowdfunding for real estate investing is a way to give back to your local f you chose projects next door. It’s a way to have corporate social responsibility for your startup, too by doing good while making money.
Enhancing the life of your community is a great idea to have the best of both worlds and succeed both financially and as a philanthropist bringing innovative projects to life.
Be sure – your neighbours will say thank you and appreciate the effort while you enjoy the dividends along with the glory.
Sounds like a dream occupation, doesn’t it?
4. Free to invest worldwide
Despite a few cases, when you learn how to invest in crowdfunding real estate, you can make money on projects in Brazil or India.
Your geographical location doesn’t really matter, and the borders simply vanish for you can choose to invest in real estate crowdfunding outside of your home country.
Real estate crowdfunding offers users a chance to spread their risk across multiple markets and generate juicy return choosing among a large pool of international projects that require credit to start construction or continue the ongoing one.
Put it this way: crowdfunding real estate investing is a great idea to broaden your horizons and reach out to multiple geographies especially when it comes to startup projects in developing countries.
5. Save up on property management
When you own a flat or an office building, you would require either managing it yourself or hire a dedicated agency that would handle all that hassle on your behalf.
So although a landlord status might sound like a feather in your cap at the start, you might regret stepping on that ground later on.
With crowdfunding real estate investing platform of your choice, you have more flexibility and don’t need to be in a particular place a call away from tenants that could be quite a maintenance at times.
Not only money matters but the time you can save and spend instead on something other than collecting rent and fixing a leaking roof.
Don’t even try to deny it: it’s everyone’s dream (yours including) to sip mojito under the sun while your daring idea takes care of your financials.
We know it might be confusing whether or not to put your savings in crowdfunding real estate investing platform.
If you’re still hesitant, you can always ask for professional advice.
To learn more about crowdfunding investing, check other articles in our blog to get familiar with all the options.
When you weight all the pros and cons of each type of crowdfunding project, it would be much easier for you to make an informed decision.