The real estate market in the US features numerous investment opportunities for newbie and seasoned investors.
Whether you’d like to go into vacation rentals or the idea of single and multi-family homes seems to interest you, this industry has got you covered. As long as you’re investing in one real estate form or the other, your chances of making the intended dividends are high.
When you hear of crowdfunding, it’s typical to cast your mind back to individuals who set up GoFundMe profiles to seek help. That said, if you have a similar line of thought for real estate crowdfunding, you’re off to a solid start although we will extensively explain the concept later.
Suppose you’re looking to diversify your investment portfolio by seeking out crowdfunded real estate opportunities and you don’t know-how, this guide is tailored for you.
Below, we’ll be taking a closer look at real estate crowdfunding and whether you should consider this investment form to diversify your portfolio.
Although crowdfunded real estate opportunities might bear some semblance to the real world GoFundMe variation where people seek help from others, crowdfunding in real estate is a tad bit different. While we’ll be explaining this term extensively, It’s essential to have an idea first.
So, let’s say that you find a property you’d like to invest in and unfortunately, you can’t come up with the funds needed to purchase that property. Pretty frustrating, right? With real estate crowdfunding, rather than doing this alone, you can seek help from other investors. Together, you all pool in resources to facilitate a buy and voila, you now have a stake in that property.
While this might seem easy on the eyes, we’ve just given you a surface definition of what crowdfunding in real estate entails. Real estate crowdfunding is slightly similar to other crowdfunding variations. Here, individuals come together to pool resources that’ll enable them to purchase a real estate property. This scenario is becoming a constant these days as down payments on real estate structures are enormous.
With the ease attached, it’s not a surprise to see investors looking for crowdfunded real estate opportunities as they’re one way of diversifying their investment portfolio.
These days, real estate crowdfunding is becoming more and more sophisticated as all the average investor needs to do is check for the top crowdfunding platforms in real estate to kick-start this investment.
When they do, they can kick-start real estate investments with a decent financial commitment (usually between $20,000 and higher). Afterward, these investors become shareholders, eligible to receive the dividends associated with that property.
While this investment form might look easy on the eyes, it wasn’t at its early stages. During this time, crowdfunding platforms couldn’t seek investors publicly as they had to rely on personal connections. However, 2012 marked a change in this investment form.
How? On April 5, 2012, President Barack Obama passed the Jumpstart Our Business Startups (JOBS) Act into law. Due to its passage, small businesses could now participate in real estate crowdfunding activities with ease.
Additionally, the JOBS act also saw the Securities and Exchange Commission (SEC) remove the embargo they’d placed on non-accredited investors. While non-accredited investors are still limited to several functions in the crowdfunding scene, they can now make real estate transactions without reservations.
With the JOBS act implemented, there has been a steady influx of multiple crowdfunding platforms. Now, almost any real estate investor can make real estate crowdfunding returns due to its relative convenience.
With real estate crowdfunding, there are several advantages attached. Let’s go through some notable mentions:
Most real estate investors crave diversity to improve their income. That said, crowdfunding offers just that as you can key into a real estate investment without paying the high charges that come with purchasing a property on your own.
While you might still get your dividends taxed, they’re usually decent, and if you can get ROI transfers into a tax-advantaged account, it’s possible to go about crowdfunding, TAX-FREE.
If you’ve invested in a traditional property, you’ll know the hassles that come with being a landlord. Here, you’re at the center of everything – maintenance, repairs, taxes, etcetera.
However, when you enter into a crowdfunding scheme, you don’t have to worry about bad tenants and nagging expenses time and time again.
Investing in crowdfunded real estate opportunities isn’t a hassle anymore since the JOBS act came into play in 2012. Thus, we’ve seen numerous crowdfunding platforms rise to the occasion with intuitive sites and apps to make the investment process more accessible.
For context, sites like Holdfolio feature easy-to-use platforms. Even if you’re a newbie to the process, there’s a FAQ section available for you to get things into perspective. Now, there’s practically no excuse as to why you should engage in this investment variation.
On real estate crowdfunding platforms, prospective investors have access to a wide variety of deals. With the crowdfunded real estate opportunities on show, investors can easily do a risk assessment and go with the alternative that tallies their finances.
Are you interested in vacation or rental properties? Well, there’s no need to fret as you should find a deal that suits your investment endeavor on significant crowdfunding platforms.
Crowdfunding in real estate has become an investment form favored by numerous investors. The reason for this isn’t far-fetched as this medium makes it possible for investors who couldn’t purchase properties due to the stringent financial requirements attached, do so with other investors pooling in resources.
When you key into the right crowdfunding opportunities, you can make a positive ROI as an investor. To ensure that you’re on the right track, perform in-depth research on an opportunity before investing.
That said, while the “best real estate crowdfunding 2021 site” debate rages on, you might want to look towards Holdfolio for your crowdfunding endeavors. With testimonials from past clients and a trustworthy reputation, you’re on a path to making those dividends you’ve always wanted.
Ever walked into a room and just felt that something was off? Maybe the furniture felt cramped, the lighting was too harsh, or there was just something you couldn’t put your finger on that didn’t quite work. Chances are, the culprit was poor space planning. Think of space planning as the unsung hero of interior […]
Tiny house designs are very exciting and intimidating in themselves. Moreover, they come with their benefits and challenges as well. To know and understand tiny house designs, one must have enough knowledge about the challenges one can face. It can be individual or separate entities and also can be shared living spaces. The following are […]
A well-designed false ceiling design for hall can create the entire mood of your interiors by adding elegance and character to the space. From simple gypsum to highly designed wooden patterns, these ceiling designs not only beautify the whole ambience but also improve sound quality distribution, thermal insulation, and lighting distribution within the room. In […]
A bathroom design isn’t just about great looks; it’s about functionality, organization, and usable space. Bathroom cabinet ideas are an essential component of keeping supplies in order and boosting the overall glamour in the place. No matter whether you have a little powder room or a big master bath, the right cabinetry will transform all […]
Aesthetic bedrooms are more than just a place to sleep—they reflect your personality and style, crafting an atmosphere that belongs to YOU. Whether for simplicity, vibrant colors, or classic elegance, the right design breathes life into your home. This blog discusses 25 aesthetic bedroom ideas that inspire and help you to craft designs that are […]
In Indian bedrooms, cupboards are one of the most important pieces of furniture besides the bed. Cupboard design for small bedroom can be a daunting task. In cupboards, clothes and all the daily required items are stocked. But the question is, how to fit a cupboard in the small bedroom? What design measures are to […]
The living room in your home is not just a space—it’s a reflection of your style, comfort, and personality. Whether you wish to have a modern makeover, a cozy retreat, or a bold statement, a change in interiors can transform the living room. From color palette and furniture layout to lighting and architectural features, this […]
The kitchen pantry design is just as important as the main kitchen design, ensuring that every daily essential item is easily accessible and visible. Given the abundance of diversity in Indian cuisine and our culture of storing a precisely designed pantry becomes essential. But when not provided a designated space it gets challenging to accumulate […]
Contemporary interior decor is more than just a trend, wherein it’s a way of creating spaces that feel fresh, stylish, and effortlessly functional. Clean lines, open layouts, and a balance between simplicity and warmth define this modern aesthetic. Unlike rigid minimalism, contemporary design welcomes personality through textures, colors, and statement pieces. It blends sophistication with […]
The cupboard design for bedrooms is evolving in the Indian market, with readily available options and designers offering customization. A cupboard is a must-have element in any bedroom, and its size, shape, and design add significant value to the overall design of the room. Furthermore, this list of cupboard designs for bedrooms explores Indian examples, […]