Are you considering becoming a real estate investor? Many people buy rental properties, and there’s nothing wrong with that. However, if you have a limited amount of cash to invest, but you still want to invest in real estate, think about crowdfunding.
Stefan Soloviev cautions that you might not get to participate if you aren’t an accredited investor with proof of accounts and proper certification. You’ll also need a higher income to participate. It won’t be as easy to withdraw your money should you need it in a financial crisis, so build a healthy emergency fund before investing in this type of investment. While the potential payoff is higher, the risk is greater as well, so don’t gamble what you can’t afford to lose.
With that in mind, here are some benefits of Crowdfunding
It’s a Passive Income
The company organizing this type of investment is made up of experts who do their research to ensure the investment is sound. While you should do your homework as well to make sure the company is capable, you’re not involved otherwise and don’t need a lot of skills to get involved with this type of investing. If the real estate market seems bewildering to you, but you still want to invest in it, crowdfunding might be the right choice for you.
It’s Calls for Less Money
Because you’re in a crowd of other investors, less money is required to participate in crowdfunding investments. Compare that to buying a rental home, where getting another mortgage is tougher, and you usually need anywhere from ten to twenty-five percent of the total cost just to make a down payment.
While the risks are greater, the benefits are also better than letting your money sit in a bank. You can get anywhere from six to twelve percent of a return on your investment in crowdfunding.
It Allows You To Choose Your Investment
The company that organizes these types of investments should have a wide range of opportunities available for you to invest in. You have control over where your money goes. Depending on the investing platform you choose, you may also have a say as to which investments the group chooses.
While crowdfunding isn’t for everyone, if you have a good income and a little bit of spare cash, these investments could be a great way for you to increase your wealth and provide for a comfortable retirement.