How Crowdfunding is Finding Its Way Into Real Estate

September 1, 2017

3:50 pm

There is a tendency to think of crowdfunding as one of the latest tools that entrepreneurs and startup companies are using to fund their projects and new endeavors. While this is a very familiar concept for those who have heard of crowdfunding, technology tools and platforms are branching out the reach of crowdfunding investments.  

Nowadays, we are seeing an increase in platforms providing investors with the chance to join forces and capitalize on real estate properties to diversify and enhance their investment portfolio.  

Not only are you able to join other investors in launching a new company and receive the benefits from those companies, now “you are also able to choose from multiple investment opportunities and gain the full return on investment targeted at the beginning of your investment process” says, Craig Cecilio, CEO at DiversyFund.  

Not only are these investments showing great results for their investors, investors are also finding comfort in the fact that they don’t have to invest alone. Reducing your liabilities gives you more freedom in your choice of investments. The latest technology in investment platforms allows you to have access to these opportunities at your fingertips.  

Why Should I Join the Crowd?  

These platforms are unquestionably fascinating, and they continue to grow every year. For example, these type of platforms produced an assessed $2.1 billion in investment for startups in 2016, and is expected to grow even more this year.

In an article by Brian Rashid, CEO of A Life in Shorts, he said “Crowdfunding is becoming a viable way to be part of massive projects that would otherwise be out of reach for individual investors.”

This is the reason crowdfunding is getting so much attention. Whether it is a startup company or a real estate property, you don’t have to invest alone anymore. You can invest with a crowd, and then share the profits in the same way.  

Can I Trust This Industry?

It wasn’t long ago when the Real Estate industry saw one of the worst crashes in our history. Some seasoned investors are still recovering from that time. However, like any new industry, there is a road to build trust from users ahead. Although these crowdfunding investments have the attraction of it being fair for all, lack of confidence is still there.  

Brian W. Tang claims in The FinTech Book that a suggestion of distrust coming from this industry could break apart a firm.  

Nonetheless, technology itself is giving us the tools to be able to have a lot more involvement in our investments without the same headaches as before. Modern technology grants investors new tools in their favor and the particular risks of investing in crowdfunding opportunities are lessen thanks to this tech.

What to Look for in a Real Estate Crowdfunding Platform

You want to look for a platform with tools that allow you to:

  • Analyze an investment opportunity the same way the platform is analyzing it. Trust a company that shows you all their research, pictures, market studies, etc.
  • Keep a close eye on the development process of an investment property. Make sure they send you regular updates, so you can feel comfortable every month until payout time.
  • Have a profile dashboard where you can keep track of your earnings as well as new opportunities in the market. A platform you can trust is always creating new ways to help its investors grow their earnings.
  • Be virtually anywhere in the world, but still able to invest when the time is right for you. The world is a lot smaller these days, thanks to technology itself. Your investments should be able to be with you and travel with you anywhere you go.

Finally, partner up with a Real Estate crowdfunding platform that goes beyond the technicalities and partners up with the best designers in the industry to bring their customer top-of-the-line designs that buyers can’t resist.

Although markets are shifting in the right direction, crowdfunding is allowing investors to gain high returns without looking under every stone on their path. It all started with new startups and now it is also part of the way you can invest in Real Estate. Don’t be left behind in this industry that is showing great progress since the day it began.

Read more about trends in crowdfunding at TechCo

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I am a technology start up writer. I love to explore the people and stories behind the new ideas changing the world. The best part of the discovery is the preparation which goes into the project. I believe context is important for ALL questions. The most important question you will ever ask and answer is why.

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