Posted on November 7, 2016
Crowdfunding as a Tool for Successful Real Estate Investment
Crowdfunding is striking a chord within the real estate world.
The world of investment, particularly REI, has been reformed, reshaped, and remastered by the forceful and masterful efforts of new technology. Social media and other platforms that demand engagement are groundbreaking revelations, which have introduced both ease and congestion to the investment market. Seasoned financial professionals and real estate professionals alike are competing with more people than ever before, and a game-changing piece of the puzzle and a major resource is the crowdfunded campaign.
Crowdfunding is a practice of funding for ventures or projects by collecting monetary contributions from a large community of individuals. Kickstarter, Indiegogo, RocketHub, Peerbackers, Solo Lend, and Grow Venture Community are examples of reputable platforms created as a path towards the capital.
Crowdfunding presents an opportunity for the optimistic to engage with seasoned and inexperienced investors looking to invest money, create an investment culture and share costs. This revolutionary practice has lowered the risk for investors, thus irrevocably mutated the real estate market. Read on learning the many ways crowdfunding has done this.
Lower initial costs tend to be the primary reason crowdfunding is so very attractive to those interested in REI. Prior to crowdfunding, property investment required a great deal of capital to cost burdensome upfront costs. Doing this alone was no easy feat, particularly for the lone, freshman investor who is tasked to all expenses. The only other option at the time was a REIT (Real Estate Investment Trust), which was not ideal because it granted very little control, regarding investment decisions and property management. Crowdfunding real estate investments can mean avoiding painfully high costs and a much smaller upfront investment.
Diversification is made easy because initial costs aren’t so overwhelming. Investors have wiggle room to invest in numerous properties. A portfolio that’s stocked with diversification likely means that there will be more stable ROI over the long-term.
Middle-men and admins, as well as mountains of cumbersome paperwork, are becoming less necessary. Real estate investment is done entirely online, therefore ‘clicks’ are all that’s required in order to ensure that property upkeep is taken care of, which allows investors more time to monitor and handle accounts remotely.
Information and education are just a keystroke away. Insider knowledge has always characterized real estate investment, but new platforms can help with research and provide interested parties with vital information that’s simply accessible online. Investors are granted an opportunity to fully invest in their own profitability.
Investment can take place anywhere and everywhere. In the past,the locality was extremely important for property investment. However, crowdfunding has transformed the way investing online transpires. An individual’s location is no longer a hindrance, and a property can be managed through these platforms.
Fast-track your interest in real estate by using crowd funding. Rather than becoming netted with the restraints of paperwork. There’s simply less time involved when using these platforms.
Non-accredited and accredited professional alike can make an investment. In the past, wealthy individuals and financial professional had exclusive claim over the investment market. Today, an individual with far less capital can invest, likely due to nominal costs.