How the Alternative Investment Market Continues to Grow
With nearly half of 2017 gone already, the alternative investment market continues to see new investors enter the market. While financials have slowly been rising back to levels that we haven’t seen in years, many are not running back to the once trusted avenues for investing. Instead, these investors are turning to alternative investments and for good reason – higher returns and lower risks.
Top Alternative Investment Markets
There are a number of alternative investments to choose from. And, as investors discover the many alternative investment opportunities, they’re discovering they provide substantially higher payouts. Even more so, that they have much less risk involved. Some of the top performing alternative investment markets include:
- Peer-to-Peer Lending
- Real Assets
- Private Equity
- Direct Investments in Private Companies or Startups
- Crowdfunding Real Estate
Continuing Growth in the Alternative Market
With a wide variety of investments to choose from, many investors are finding out that alternative investments produce more than just the returns they’re looking for. They also provide the right amount of diversification.
For example, when investors invest in crowdfunding real estate opportunities through our platform, they gain the ability to not be invested in just one asset, but many. Therefore, providing investors with the diversification they are looking for, as well as the results.
With the 2008 financial crisis still fresh in everyone’s memory, investors aren’t only seeking diversification, they’re looking to protect their assets from downturns in the market too. This desire coupled with the need to diversify one’s portfolio has allowed the alternative investment market to grow substantially.
Crowdfunding Real Estate Experiences Substantial Growth with Market
Even more so, the crowdfunding real estate sector of alternative investments continues to see new investors enter the market daily. Furthermore, in 2016, the crowdfunding real estate market nearly exceeded $3.5 billion.
With the ability to provide investors with expert knowledge in both investments and real estate, as well as pre-vetted investments, investors are receiving exactly what they’re looking for. And, that is investments they can trust.
Benefits of Crowdfunding Real Estate as an Alternative Investment
This new way of investing in real estate provides investors with the freedom to easily diversify their portfolio into real estate. Moreover, investors are able to easily track their investments, reinvest with ease and much more via these innovative crowdfunding platforms.
While there are a number of benefits to having real estate in your investment portfolio, here are just a few benefits to having this great alternative investment in your portfolio:
- Invest in deals that were not previously accessible. Through crowdfunding real estate, investors can now access real estate deals that were not always available to the general public. These are exclusive private real estate investments. One’s where you would have needed to know the “right” people to invest in previously, but not anymore.
- Low investment minimums. With the passing of the Jumpstart Our Business Startups (JOBS) Act, investors can start investing with as little as $5,000 on our platform. Prior to the SEC filing, one would need at least $50,000 or more to invest in a private real estate deal.
- Modern user experience. Crowdfunding real estate platforms provide a simple to use interface for investors. This allows the modern investor to easily invest, check their investment and much more from anywhere in the world.
- Diversification. Since there are low minimums to invest on these platforms, investors are able to invest in a multitude of properties instead of just one. This allows for greater diversification within your portfolio, which is we all know is a great thing to have!
With so many benefits to alternative investments, it’s no wonder they continue to grow at rapid rates. As investors realize the benefits of higher returns and lower risks that many of these alternative investment options have, we expect this growth to continue well into the future.