Are you interested in taking advantage of the booming buyer's market in real estate as an investor, but lack the cash resources usually required? You are in luck. A new form of real estate investing is becoming very popular and is allowing people like you to get into the market for only a few thousand dollars. This new type of investing is done by crowd funding, and it allows you to own and profit from a portion of a piece of real estate that you own in conjunction with other investors. Here are three wonderful reasons you should give it a try.
1. You Can Easily Start a Real Estate Portfolio
Buying properties in the traditional way costs a lot of money. Between the down payment, closing costs, maintenance costs, and taxes, you may end up spending all of your savings on just one residential or commercial property, if you can even buy it at all.
With crowd funding, you pool your money with other investors though a real estate crowd funding website. The crowd funding project for a particular property will continue until enough money has been raised to buy it. Your portion of ownership will depend on how much money you contributed toward the property's purchase.
Because you can own and profit from a property for very little money, you can take your investment dollars and spread them out over many different properties. Through crowd funding, you have the opportunity to own shares in various types of properties, just like a real estate mogul.
Shares in residential homes for flipping, apartment buildings, commercial properties, and homes for rental can all be yours. Your portfolio of real estate ownership can grow very quickly with crowd funding, potentially making you a lot of money.
2. You Don't Need Bank Approval to Own Properties
With crowd funding, banks are not necessary to getting an ownership share in a property. This is very appealing to many investors. Because you and the other investors will be raising funds together to purchase the property for cash, you don't have to jump through a ton of hoops to get a mortgage.
All you need to do is decide how much money you're going to invest in a particular property. You can find out about the property online, or get a real estate agent to show it to you in person if the property you're considering is local to you. Crowd funding makes owning real estate easier than ever, and anyone with a few thousand dollars for investing can get in on the action.
3. You Get a Big Potential for Reward With a Small Amount of Risk
According to Investopedia.com, crowd funding with real estate gives you a big opportunity for a substantial return on your money, with minimal risk involved. The risk is minimal because you have only invested a small amount of money, and your ownership in any given property is shared with many other investors. If you do lose money on one property, you can always invest in another, more profitable one, or look to your portfolio for income-earming holdings.
Your potential for reward is huge because you do have the opportunity to invest in many income-producing properties that may go up in value if you and the other investors decide to improve and sell these properties at some point don the line. Few other investment opportunities in real estate have the potential to double or triple your investment in a short amount of time. Crowd funding real estate investments makes this possible
Crowd funding real estate investments is still a relatively new thing, but it is catching on with investors across the nation. Regulatory agencies are even looking into ways to make real estate crowd sourcing accessible to people with only a few hundred dollars to invest. It really is the future of real estate investing. Get involved with real estate crowd funding today and watch your investment dollars grow.Share
13 March 2015
Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.