How To Invest In Real Estate Crowdfunding: 10 Point Checklist

Real estate projects are capital intensive. Developers do not have all the funds to complete the project on their own.

Real estate crowdfunding enables several investors to come together and invest smaller sums of money.

The contributed pool of money is large enough to fund a real estate project. It is a win-win for both the investors and the developers.

1. If your existing asset allocation is only stocks and bonds, real estate crowdfunding provides the necessary diversification by adding a real estate asset class to your portfolio.

Advantages Of Real Estate Crowdfunding

 It provides a hands-off method for investors to gain exposure to real estate without needing to be involved with the real estate project on a day-to-day basis.

Who Can Invest In Real Estate Crowdfunded Deals?

An accredited investor, includes anyone who:

Earned income exceeding $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year

Should I Invest In Crowdfunding Real Estate?

With central banks worldwide lowering interest rates, it has become harder to get any yield on your “bond” portfolio.

Investors are effectively paying the German government 2 euros for every 1,000 euros borrowed over 10 years.

If you have more than $50,000 in your bond portfolio, you need to look at asset backed securities. While there are several asset-backed securities such as art, legal paper, business loans, etc.

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