Ever wonder what this whole real estate crowdfunding thing is about?
How can you invest in real estate properties online?
This is a whole new way to invest in deals that no one else has access to. You can get phenomenal returns and do it from the comfort of your home.
You can either decide to invest in a REIT-style portfolio or individually in real estate holdings. It’s extremely powerful.
In this video, I explain EXACTLY what it is and how you can use it. I’ll get really nitty gritty and go through the differences between some of the platforms as well as the funding types.
Did you find the video to be helpful?
Did you learn something about real estate crowdfunding?
If you did and you want more content like this, please take a second to subscribe and turn on post notifications. I put out new content each week.
So let me ask you a question. What are your investing goals? Because that will determine whether or not you get involved in this…
1. Real estate returns
Investing in real estate is a bit different from other forms of investing. When you invest in stocks, the price goes up and down every day. You might receive dividends and some paper appreciation.
With a real estate investment, there isn’t as much fluctuation in the underlying asset. Over time, a property can appreciate in value and continue to deliver you monthly cash flows.
In addition, you can choose to invest in debt that is backed by real estate properties or gain equity ownership in the properties. This will affect your returns and the security of your capital.
To decide whether or not real estate investing is for you, you gotta decide on your investment goals.
2. What is your investor status?
Your status as an investor is going to limit the types of real estate crowdfunding websites that you can use.
For example, some websites limit their investments to accredited investors, or people who have a ultra high net worth and annual income. Others are open to the public.
Make sure to take note, because your investor status is going to dictate the platforms that you can use and the deals you’ll be able to access in the real estate crowdfunding industry
3. What’s your appetite for risk and liquidity?
If you are comfortable with risk in your portfolio, then you’re going to be more likely to invest in properties that will appreciate in value over time and offer strong growth potential.
These properties tend to carry more risk because your capital is not as secure as if you were to invest in debt-backed financial instruments. Therefore, if you were less of a risky investor, your portfolio would contain more fixed income style investments.
Your need for liquidity is also a factor. Liquidity simply refers to how easily an investment is transferred into cash. The stock market has a high degree of liquidity. You can easily sell your shares in a company to other investors.
However, investments in private REITs and real estate online tends to be illiquid. You must wait for an opportunity to cash out or for the real estate to be sold. You’re looking at long term investment horizons.
4. How much control do you want?
When you buy a real estate property or invest alongside one other investor, you are in charge of the management of that property.
You have a high degree of control. You can decide how you want to market the listing, whether or not you want to improve the property, and even the types of tenants that you’ll allow.
If used smartly, this control can lead to a higher return on investment. You can take advantage of a gap in the market and run the property as a business.
At the same time, it takes a lot of time to be in charge of the management of a real estate property. You have to deal with tenants and customer service. It’s a lot of headache and time.
The great thing about real estate crowdfunding is that you can experience what it’s like to own a property without having to manage it. It’s extremely hands off, leading it to be a good choice for investors who don’t want a high degree of control.
5. Educate yourself now (and reap the rewards)
The more you educate yourself when it comes to Real Estate Crowdfunding, the better you’re gonna do.
Grab a copy of my book, Real Estate Crowdfunding Explained which is available on Amazon and also you can get a free Audible copy with a free trial of Audible.
This book goes into the ins and outs of this industry, which websites are best for you to look into, how to invest wisely, and most importantly, what you should know about real estate crowdfunding before taking the leap!
Hope you enjoyed the video I put together for you. Good luck.
