Real Estate Crowdfunding Platforms
Real estate continues to be understood as one of the highest-quality markets to invest in. However, many experience problems when trying to start investing in real estate. This is due to the investments often requiring a large amount of starting capital. For this reason, many perceive real estate investing as the domain of the hyper-wealthy. As very few people can invest in an extra house or two. Let alone thinking about a piece of real estate such as, an apartment building.
In addition to being incredibly expensive, real estate investment in America has also historically required a number of private connections. In his article for Forbes Magazine, Nav Athwal writes, “Under the Securities Act of 1933, private securities investments (including securities of real estate companies) could not be marketed publicly. This means that access to private deals was limited to investors who were able to seek them out through connections in their personal network.” However, in the last decade, many of these legal precedents shifted. With this, more accessible platforms for investing opened up.
Crowdfunding Platforms Make Real Estate Accessible
Perhaps the most important new development in real estate investment is the proliferation of crowdfunding platforms. By allowing investors to place their funds in a variety of properties, crowdfunding platforms made real estate investing simple for ordinary people.
Before, real estate often required hundreds of thousands of dollars – and all of that money went into the same investment. Even if an ordinary investor can afford to invest in property, their investment still remains highly risky. If their building doesn’t turn a profit, the entire investment process goes bust. Real estate crowdfunding platforms, however, are remarkable as they require so much less of an initial investment. Even more so, they are innovative as they allow even wealthier investors to diversify their portfolios.
Real estate crowdfunding platforms allow many different investors to collaborate on the purchase of properties. If you enter a real estate crowdfunding investment with $10,000, you will be able to distribute that money across different properties and markets. This means that you won’t be as beholden to particular boom-bust cycles as those forced to invest in individual properties.
Investing in Real Estate Crowdfunding Platforms
This is why real estate crowdfunding platforms are useful for all real estate investors. It’s not just for those with less money at first. Many argue that the entire market has changed for the good. Even investors who may otherwise have been able to invest in a moderately diverse real estate portfolio can now invest their money even more widely, if they want to. As Athwal reports, this increases transparency across the board: “Previously, investors might go into a deal knowing very little about the property in question…Crowdfunding platforms, on the other hand, generally operate with a goal of offering investors as much detail about an investment as possible.”
In short, real estate crowdfunding platforms have opened up the world of real estate investment to a whole new group of investors. And, in so doing, changed the entire real estate market. If you’re curious, why not start today with DiversyFund? Making an account is quick and easy, and we’ll help you through every step of the crowdfunding investment process.
What to Look for in a Crowdfunding Real Estate Platform
Technology has dramatically changed the way we live our lives. From the way we track our health and fitness to how we date, the advent of new technology has shifted each aspect of our lives. Its reach has even extended to how we invest our money. Crowdfunding has made it possible for new investors to get into the real estate market where before, entrance was nearly impossible for rookie investors.
Breaking into the real estate market is a great way to diversify your portfolio and earn a long-term income source. There are so many crowdfunding websites, that narrowing down your selection might seem daunting. And the truth is, all these sites are not created equal. Some lack the experience and integrity of others, potentially setting you up for a sticky situation.
Choosing a Crowdfunding Real Estate Platform
Before you jump in and get started, you may have some preliminary questions. Instead of reading a million crowdfunding real estate reviews before choosing which platform is correct for you, learn more about the most important elements to any crowdfunding platform.
Choose a team that has valuable experience
One quick way to suss out the good platforms from the bad is to look for quality experience and expertise. Browse the sites’ “About Us” pages to learn more about the teams behind the businesses. Look for members who have solid real estate experience and proven track records of expertise in the field.
Up to date market information and investment opportunities
Going into an investment without all the facts would be foolish. You’ll want to verify that the site you’re using has up to date information on all its listings. If you’re hoping to see your investments perform well over time, you need to begin the process with all the current and most accurate information possible. A credible site will give you updates and stay in close contact with you regarding your investments.
Data on current market trends and stability should also be easy to access. Crowdfunded real estate is inherently more transparent than traditional real estate investing. Still, some sites may not continue to advise you on your projects whether due to lack of experience or simply poor business ethics.
Crowdfunding sites can personally vet each opportunity and provide up to date information to its investors. Your investments should provide you with the most highly personalized experience you desire. Your platform should also have the ability to react quickly to key market changes and take advantage of creative strategies. Stay on top of these changes to get the most of your investments.
Access to vast opportunities
The platform that you choose should provide a useful “one stop shop” experience. From the platform, observing a wide variety of opportunities should be easy. Plus, the platform should make choosing which ones are right for you as simple as possible. Look for a crowdfunding site that opens doors to a variety of types of investments. This is a great way to diversify your portfolio and find what works for you as an investor.
Accountability and experience
If the burden of filing legal documents and jargon-heavy paperwork has been holding you back from investing, don’t sweat it. Find a platform that makes the process easy. A stand-up firm will also be a source you can trust. Platforms you should work with will underwrite every aspect of the loan, measure the known risks and identify any potential unknown risks in the transaction before we providing the return price to investors.
Why work with DiversyFund?
DiversyFund is a real estate crowdfunding online investment platform that connects accredited investors to borrowers with in-house vetted real estate investments. The platform provides the ease of browsing, investing, and managing investments online, anywhere, anytime. DiversyFund is your gateway to exclusive real estate investing. We simplify the process of crowdfunded real estate investments. Our team of dynamic real estate professionals is committed to providing you with the best investment opportunities. We have combined our extensive knowledge of real estate with our experience in asset management, consulting, investment banking and technology to revolutionize the real estate industry by making the investment process simple and accessible for you.