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November 11, 2019

4 Crowdfund Platforms For Alternative Investments

A growing number of crowdfunding platforms are popping up enabling consumers to put their money in a number of investments that were previously off-limits for the general public. 

Crowdfunding startups are enabling the everyday investor to claim a piece of generally prohibitively-expensive assets for themselves– investments in luxury vehicles, art, real estate, and more that can broaden one’s portfolio and even outperform the market.  

Here are 4 crowdfunding platforms for alternative investments:

Luxury Art

MasterWorks calls itself the first investment platform for art. The company allows everyday investors to join an exclusive community of blue-chip art investors. The company says the art market outperformed the stock market in 2018, returning 10.6%, compared to a 5.1% decline in the S&P. 

How does it work? 

Masterworks purchases paintings with its own capital and files an offering with the SEC to offer it publicly. After an offering is qualified, investors are then able to buy shares in paintings from some of the world’s most renowned artists. Masterworks then sells the paintings and then profits are distributed among investors. 

Learn more here:

Luxury Cars

Ever wanted to own a rare Lamborghini or Porsche? Now you can.

Rally Rd. allows its members to invest in blue-chip collector automobiles through its app. The company says vehicles on the platform represent an asset class that has historically outperformed the stock market, alongside several other alternative asset classes. 

According to Rally Rd., its mission is to democratize alternative investments, providing access, liquidity, and transparency to markets that have traditionally only been available to a select few. 

After the company purchases a rare collectible car, it offers investors shares in the vehicles for as little as $50 per share. 

Rally Rd. CEO Christopher Bruno says investors can enjoy the “ownership effect” without the headaches and expenses associated with maintaining an ultra-luxury vehicle. 

Learn more here:

Peer-to-Peer Lending

Prosper opens up the world of money lending to everyday investors. The app’s users can choose to either borrow or lend money directly to each other on its platform. 

For borrowers, you can lock in a lower rate than you would receive at a bank and receive more flexible terms of payment, with no prepayment penalties. 

Lenders are able to diversify their portfolios, loaning money to other users at a minimum of just $25, and earn a historical average return of 5.2%.

Prosper says they have empowered over 971,000 borrowers to reach their goals, processing over $16 billion worth of transactions. 

Learn more here:

Real Estate

Investing in multifamily real estate properties has generally only been reserved for the ultra-wealthy. 

DiversyFund is opening up the world of real estate investing to everyday Americans, enabling them to invest in properties for as little as $500 through its own public non-traded REIT. 

The company purchases multifamily apartment buildings that are already generating revenue and but are in need of improvements. The fund renovates the units to increase the cash flow, increasing the building’s value, as well as the rents.

Since DiversyFund buys cash flowing properties, it waits and lets the assets further appreciate before selling and enabling investors to reap the profits. 

Learn more here:

The Future of Crowdfunding

New crowdfunding platforms for alternative investments are emerging every day, and soon, there will be no category that an investor can’t get their hands on. With proper due diligence and consideration, investments such as the ones listed above are a great way to diversify and add alternatives to your portfolio– all with a low barrier to entry.

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