Top real estate crowdfunding platforms right now and investment advices: Another aspect to look into from which countries investors are eligible to invest into real estate crowdfunding platform. Unless the platform is country specific, most of the platforms are allowing users from all over EU to invest. Some are accepting investors from countries outside EU, however this should be checked in every real estate crowdfunding platform. User experience: The first user experience, which could be noted – onboarding process. Most of the platforms are using third party suppliers to do onboarding process, but they have different integration levels and is some it could take a few days, before the user is approved and could start investing. Secondly project descriptions and ease of use, while navigating between the projects. This is not a deal breaking process, but certainly saves time, while selecting a project as the investment process itself is quite time consuming. Find even more details at real estate crowdfunding platforms.
Reasons that individuals may be interested and exploring in these types of real estate opportunities include: Chance to diversify assets and investment portfolio holdings; Low startup capital required as compared to traditional real estate investments; Shared cost structure enables financiers to invest in larger property holdings than they’d typically have access to; Risks associated with ownership are split among multiple stakeholders; Access to new and/or exclusive opportunities; Ability to hold commercial real estate or real estate portfolio holdings in addition to residential properties; Offers exposure to real estate market without the need to personally provide upkeep and maintenance; No need to individually qualify for, obtain, and make regular payments on a mortgage; Does not require owners to personally guarantee loans with property and assets.
Real estate crowdfunding platforms offer entry into real estate to a wide range of people, from experienced, accredited investors to individuals who are just starting out. The right platform for you depends on your needs and expectations. If you’re an accredited investor and you need access to institutional-quality offerings, CrowdStreet might fit the bill for you. DiversyFund is a good pick for those seeking zero management fees and a reasonable entry points. Accredited investors will also find a good selection and low fees at EquityMultiple. Investors who are not accredited and need a low entry point will find it at Fundrise. If you’re an accredited investor who needs low interest rates, Peer Street is a good choice for you. RealtyMogul is a good option for investors who are not accredited and are looking for a reasonable investment minimum.
Supporting documentation and description of the crowdfunded project: Real estate crowdfunding platforms together with real estate project developers wants to provide as much information on the project as possible. This allows for potential investors to familiarize with the projects, understand development level, risk level, budget and other parameters. Different platforms provide different level of description. Some just provide written explanation on the key parameters of the project, such as location, duration, project developer and etc. Whereas other provide valuation reports, planning documents, land ownership documents and etc. Expert investors analyzed the documents, estimates the risk and makes their decision based on this. As supporting documentation and description is not a KPI based on which investment risk can be assessed, this depends on time and knowledge invested in reading this.
EquityMultiple: Although it requires a minimum investment of $5,000, EquityMultiple (which aims to make real estate investing simple, transparent, and more accessible to everyday investors) allows you to invest in privately managed commercial holdings. Sample real estate investment opportunities include office spaces, assisted living facilities, hotels, data centers, and more. Open to accredited investors, minimum investments can range from $10,000 to $40,000, and look to range in duration from half a year’s time to upwards of a decade. If you’re a wealthy investor looking to increase your exposure to new opportunities and overall deal flow, it could be a first port of call.
Real estate crowdfunding is very similar to equity crowdfunding in the sense that an investor can buy into a property and become a shareholder. The investor does not need to buy the entire property. Instead, the investor can earn a portion of the profits generated from the real estate investment. For example, any revenue generated from the building’s rental income or any proceeds from the sale of the building would be paid to the investors. One of the benefits of real estate crowdfunding for non-accredited investors is the low minimum investment amounts that are typically required. In some cases, investors can become shareholders in real estate for $5,000. Also, real estate crowdfunding can help investors reduce the risk that’s associated with an equity portfolio. In other words, real estate crowdfunding helps investors to diversify the risk in their investment portfolios by not having all of their funds in the equity market. Read extra details at https://www.crowdbulls.com/.
What is crowdfunding? Crowdfunding is a capital raising process, during which capital is raised from the public via open process. Public entails both private individuals or institutional investors. Usually, crowdfunding is used when other types of capital raising is not possible due to various factors, e.g., risk profile. There might be some cases, when crowdfunding campaigns are being used as a marketing tool to market the product, service or project itself.