There are a lot of people who love the idea of investing in real estate, but the process is complex, and it often requires a large capital investment upfront. Crowdfunding simplifies the process and gives almost everyone an opportunity to become a real estate investor.
In this article, we will be talking about some of the advantages of investing in real estate through crowdfunding.
Real Estate Investments Completed Online
Real estate investing has always been a complex task. It requires not just knowledge but paperwork and personal property visits—which can take hours, if not days, away from your life. Crowdfunding changed the game. You can invest in real estate without the complex hassles, and you can do it from the comfort of your own home or wherever you are using your mobile device.
Investing through Crowdfunding Platforms is More Inclusive
In the past, investing in real estate often required an investor to meet certain requirements before they were allowed to invest. This included a minimum gross income exceeding $200K in each of the two most recent years, or joint income with a spouse exceeding $300K. But not everyone has that kind of income which prevents smaller investors from investing in real estate.
But thanks to the passage of the JOBS Act, investors who previously were excluded are now able to invest in real estate through Regulation Crowdfunding (RegCF). With RegCF, regulations in investing were widened to give an opportunity to smaller investors to participate in real estate as well.
Real Estate Crowdfunding Platform is a One-Stop Investment Hub
Real estate investing has traditionally been a very complicated and tedious process.
It required investors to go through an extensive and often confusing process, like physical inspection of the property, signing tons of documents, and meeting with different individuals. It required a hefty investment in time and effort, especially for new investors who have little knowledge about real estate.
The good news is that there are now crowdfunding platforms that provide investor education, information about the issuer, business plans, risks, and other disclosures. Crowdfunding platforms also serve as a third party to validate the transactions. No longer do you need to do all of your own research as the crowdfunding portals now do a great deal of the work for you.
Crowdfunding Helps You Diversify your Investments to Real Estate
People have always been looking for ways to diversify their investment portfolios. Historically, the only way to do so was to invest in a variety of assets. This is still true, but modern investors have more options than ever. Traditional assets, such as stocks and bonds, are still popular, but today's investors also have other options available.
By investing in real estate through crowdfunding platforms such as EquityDoor, investors can take advantage of numerous investment options and diversify their portfolios, which reduces risk.
Investing in Real Estate Crowdfunding is more Affordable
The real estate market is a unique investment option for those looking for diversity in their portfolio. It offers a wide range of opportunities and a variety of returns on investments. However, it is often viewed as expensive, especially by smaller investors.
But with Reg CF, participating in real estate has become more affordable for as low as $1000.
There are a lot of ways to invest in real estate. Some investors prefer the traditional route, and want to manage their properties personally—they want to physically see the properties and manage them. There are others who prefer paperless and hassle-free methods of investing.
Crowdfunding is a new and revolutionary way of investing that may not be for everyone. The good news is that no matter what type of investor you are, there is an option for you. At the end of the day, it's your money, and you want to know exactly how it's being used and how your investment is going.