Buy investment properties on a budget through crowdfunding

What is crowdfunding?

If you’re tired of the low returns on certificates of deposit, the savings plan, and other equity investments, check out crowdfunding for double-digit returns. Collective financing is gaining popularity as an investment strategy for many investors. It is a unique process to raise capital through family and friends, potential clients and individual investors looking for different investment sites. To promote crowdfunding, advertising is an approach focused on the use of social media and real estate investor forums and associated networks.

Which platform is right for me?

My preference is crowdfunding with real estate investments which I will talk about here. There are many different strategies and models of crowdfunding platforms, so you want to make sure the platform you select is right for you. Ask the question: Am I comfortable with the amount I will invest? Do we share the same values? Do you agree with your investment strategies, such as moving house or buying and maintaining long-term passive income? The amount needed to invest will vary from site to site, so search until you find one that fits your investment portfolio.

Do your homework

Do your homework before investing. Historical performance is a good indicator of future performance. Meet the management team and see what they do on social media. How transparent are they and how eager to talk to you and answer your questions, including the tough ones? Those who are more willing to share beliefs, management, and goals tend to do better for them and their long-term clients. Also contact other investors to obtain their input and endorsement.

Do the math

I’ve seen a lot of attractive performance ads to find out just what rates were to get you called. Do your homework to see if the numbers are realistic. Ask how many details are provided about the company? How do I access my investment and returns after committing? How and when are investment returns distributed? What kind of reports (personal and legal) are provided to the investor? Make sure you are comfortable with the management team and the security of your investment before taking this first step.

Example of crowdfunding

I personally invest with Holdfolio. Its purchase and retention platform consists of 10 rental homes in the same portfolio. These houses are bought, rebuilt for rent and rented. 60% of the property is provided to investors (the crowd) with a minimum investment of $ 10,000. 40% of the property belongs to the portfolio management team. The returns posted when I invested more than a year ago were 10% to 14% and I am currently making 11% annually. With each new portfolio, 10 additional homes are offered to investors for an average crowdfunding amount of $ 320,000, which is typically filled within 4 to 5 days. Holdfolio just finished portfolio 10 and soon portfolio 11 begins. This is just one example of many crowdfunding platforms.

Summary

Collective real estate financing is rapidly becoming popular as investors move away from equities to seek higher returns in other markets. Be sure to do your homework and restrict your search to the top three. If it’s your first time, once you’ve made your selection, start with a smaller amount until your comfort factor allows you to do more.