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How Can You Use Crowdfunding to Invest in Real Estate?

How Can You Use Crowdfunding to Invest in Real Estate?

Today we are going to talk about real estate investing, crowdfunding style. This morning, when I woke up, I went online and researched crowdfunding in real estate. What I began to notice is that there are dozens of platforms for individuals to begin investing in real estate.

Crowdfunding has a distinct advantage in the real estate investment world. Instead of having to invest $50,000-$100,000 of your own money, you can invest as little as $5,000 into an existing investment platform and begin to see returns.

However, there are some downsides to this method. You don’t get to choose your own properties, and you don’t get to see them in person either. It’s an elusive investment, like the stock market. It’s something you can’t physically see or touch, but it’s there.

There’s another way to crowdfund in real estate. With local crowdfunding, I’ve had many real estate investors who have created an LLC involving multiple business partners looking to invest in real estate. Local crowdfunding offers some additional benefits that national crowdfunding doesn’t.

First, you get to choose your own partners. Secondly, you get to choose your own real estate agent. Third, you get to choose the property you buy, and it will be closer to home so you can go see it in person. Finally, you also get to choose the tenants, rental rate, and rental terms. You and your partners are in control of this transaction, and don’t have to trust that someone else will make the right decision.

If you’re thinking about crowdfunding on a local or national level and you’d like to talk about these options, I would love to talk. Just give me a call or send me an email. I look forward to speaking with you!