Investing in real estate offers an opportunity to diversify your investment portfolio. It also offers a possibility to passive income and helps build wealth over time. However, investing in real estate is often very time-consuming and requires a large amount of upfront investment.
If you’re interested in getting involved in real estate but have limited funds or access to financing, crowdfunding could be an option for you.
Crowdfunding for real estate is a method of raising funds for real estate investments by soliciting capital from a large number of investors through the internet. This method allows even small investors to participate in deals because they can pool their funds together with other investors to finance projects that would otherwise be out of reach.
Crowdfunding has been around for a few years and has proven to be a great source of capital for startups and new businesses. It started gaining popularity when the JOBS Act was signed to help start-ups and small businesses access funds more easily and faster. This is done by easing some regulations to allow the participation of non-accredited investors and making the pool of potential investors larger. With a larger pool of investors, raising funds becomes easier and faster.
Leveraging Real Estate Crowdfunding Platform to Diversify Investment Portfolio
Diversifying your investments is considered to be one of the key strategies for reducing the risk of losing your hard-earned investments. There are many ways to diversify an investment portfolio. Some people may wish to diversify by asset class, holding a mix of stocks and bonds. Other people might choose an index fund that holds a variety of stocks within one industry so they can take advantage of the strengths of the industry while limiting their exposure to anyone company's successes or failures. Still, others might choose to use a mix of actively managed funds and passively managed funds (such as exchange-traded funds) where the same basic investment strategy is used but across different companies with different managers who may have varying styles and experiences. Among the various ways of diversifying an investment portfolio, one of the most popular is investing in real estate.
The most affordable to make this is through real estate crowdfunding platforms such as EquityDoor.
EquityDoor is an online marketplace for real estate investing that matches developers and investors to bring together capital for real estate deals. Investors can invest in these opportunities with as little as $1,000. It is authorized to be an intermediary between issuers and investors and is allowed to market its offerings even to non-accredited investors, making the pool of investors more inclusive.
By eliminating the typical costs, complexity, and reliance on traditional banks and real estate insiders, it makes investing more affordable and inclusive that allows almost anyone to invest, including non-accredited investors.