Investing in real estate is one of the best, most safe investments and can help earn a pretty decent passive income. The barrier to entry is that it can easily cost over a million dollars in most parts of the United States. Most people don’t have the large investment capital needed to enter the real estate industry. Crowdfunding real estate makes it possible for investors to invest in just about any real estate project without taking on the burden of being a landlord or flipping houses. Like other crowdfunded projects, the system relies on a large pool of investors, each of whom makes a small financial contribution. —
While crowdfunded real estate projects are few and at present even fewer platforms, the fact that anyone can invest with as little as $1000 is attractive. It isn’t uncommon for investors to “earn stock market-like returns with historical annual returns anywhere from 6% to 12%.” According to Josh Patoka, the author of a recent article about crowdfunded real estate projects published on CreditBrite. In comparison, S&P 500 investments usually yield a 7% return on investment.
Anyone interested in crowdfunding can read the complete article “Real Estate Crowdfunding (How To Invest In Real Estate Without Being Rich) can be found on CreditBrite’s official website: https://www.creditbrite.com/investing/real-estate-crowdfunding
Experts cite other reasons for Crowdfunding real estate becoming the next big thing, like being a lot less stressful and time-consuming. Owning physical property requires paying taxes, maintaining the property and often dealing with difficult tenants. Hence to be successful, one must treat it as a full-time job.
Crowdfunding allows small investors to invest in any real estate market. Investors can choose to put money in properties across the US without having to be physically present. The returns are always pretty decent, but all without the hassle associated with traditionally owning a property.
Many experts in the real estate industry point to potential risks involved. Crowdfunding real estate investing is similar to private investment groups. The problem with the concept is that it hasn’t been tested at the scale that it may eventually get to within the next few years. So, early adopters of the concept don’t know what to expect.
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