Real estate crowdfunding is an investment model that has come into its own in our Post-Great Recession world. In one way or another, investors come together to buy properties that would be too expensive for any single party to buy. This model can allow the average person to invest in large commercial real estate properties or get involved in far-flung markets in different regions of the country. Below, we will explain three main crowdfunding options which are currently available to you.
You Can Use a Real Estate Crowdfunding Startup
There are numerous real estate crowdfunding startups that have sprung up in the growth years since the 2008 housing market crash. These platforms may give you access to investments for a monthly fee or an account if you deposit a minimum amount of money. Investment platforms like these have tended to perform well in the post-Recession world, but we cannot expect this strong trend to continue if another housing crash happens to strike.
Real Estate Investment Trusts Are Tried-And-True
Real Estate Investment Trusts (REITs) have been around since the ’60s. Through a REIT, you can buy a piece in a large real estate venture in the same way that you would buy a stock or mutual fund share. Well-diversified and highly liquid, REITs may be the way to go if you want tried-and-true access to a wide variety of markets.
Start Your Own Company with Other Investors
You could always start your own investment company with another investor or investors, then pool your money together to buy real estate. Even more, you could save money by using your company to purchase properties through the Propy Transaction platform; then, you have the option to flip the property, hold it for appreciation, or keep it and collect long-term rent.
Crowdfunding is a great way to get involved with real estate if you do not have the capital to take on a whole property by yourself. Exploring crowdfunding options can help you manage your risk and increase your available options. Consider these crowdfunding methods before making your next investment purchase.