Benefits of Crowdfunded Real Estate


Benefits of Crowdfunded Real Estate

Real estate investing in the past has involved finding a property, applying for a loan, and hoping you'll be approved. Then you either manage the prop

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Real estate investing in the past has involved finding a property, applying for a loan, and hoping you’ll be approved. Then you either manage the property yourself or find someone to do it for you. Thanks to the internet, there’s another way you can invest in real estate without having to save for years. With crowdfunded real estate, you pool your money with several others and then share the rewards.

Crowdfunded Real Estate

It’s a great way for people with less cash to get in on the real estate market, although Stefan Soloviev does maintain you should do your homework before investing, even it’s a small amount of money. Here are some benefits of crowdfunded real estate.

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No Loan Required

While you should always be putting money aside every month, you won’t have to save for a large down payment. Some banks require you to put down 15 percent as a down payment on an investment property. With crowdfunding, you can invest far less.

Affordable Investments

Depending on the crowdfunding platform you choose, you can get into the game with far less money than other investments, making it an affordable way to invest in real estate.

Potential for Passive Income

Buy a house or commercial building that you plan on renting out, and you have to repair the property and update it. You have to find tenants and make sure they pay their rent. With crowdfunded real estate, however, you make an investment and then are free to pursue other interests.

Potential To Be Proactive

If you’ve found the perfect piece of real estate that you know is a great investment, you can start your own crowdfunded real estate fund. Contact friends and family members. Gather enough people willing to invest in the property with the agreement that when you sell, you share the proceeds. You’ll need to hire an attorney to draft the proper documents, but this is a great way to be active in real estate when you don’t have the required funds.

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Freedom To Diversify

With the traditional type of real estate investments, you save money, make a down payment on a home and then save for a few more years until you can buy another house or office building. With crowdfunded real estate, you can put your money in a wide range of real estate options.

With all the benefits it offers, crowdfunded real estate might be the best choice for your investing.