REAL ESTATE CROWDFUNDING: WHAT IS IT AND HOW TO GET STARTED?

As we are experiencing the digital revolution and the growing popularity of peer-to-peer exchanges, investment is becoming much more transparent and inclusive than ever before.

 

Real estate crowdfunding has been named the fastest-growing part of the crowdfunding industry with a volume of $3.5 billion in 2016 and $300 billion predicted to be reached in 2025.

 

 

Since this industry continues to expand, more and more people are looking to get into real estate crowdfunding. So what is it all about?

 

Real Estate Crowdfunding allows individuals to pool their funds together and divide the costs of investing in real estate. In practice, it means that people can sometimes invest from as little as €50 in real estate projects around the world with hundreds of other people investing in the same projects with them.

 

The main difference over the traditional real estate investing is that crowdfunding allows normal people to invest without having large amounts of assets, while traditional investing is mainly for wealthy individuals, not for people in their 20s.

 

 

Why do you invest in Real-Estate crowdfunding?

 

It doesn’t require a big amount of money

Investors get access to the real estate market with small amounts of money.

 

Diversification

As real-estate crowdfunding allows to invest small amounts of money, investors can invest in several properties, minimizing the risk exposure. For example, instead of putting $10,000 into one property, they can invest $2,000 in 5 different properties using different platforms

 

High Returns with lower risks

Investing in real-estate is the most profitable investment methods of all. Most of the worl’s millionaire and billionaires have built their fortune by investing in real-estate. Since crowdfunding offers opportunity to have a very diversified portfolio it lowers the risk significantly.

 

Little maintenance

Real-estate crowdfunding is less demanding than actually owning a property and renting it out. You can avoid the challenge of managing a property and having to renovate it every few years. You can choose to have the returns deposited to your bank account monthly/quarterly or reinvested in new properties easily.

 

Unlimited options

Although it’s a newly developed branch of investment, real-estate crowdfunding already offers many opportunities to invest internationally. Rapidly growing number of online platforms allow investors access to funds in different properties all around the world in one click.

 

Jan Večerka

CEO & Founder of BrikkApp

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