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Crowdfund Investing for All

ENDVEST Sep 1, 2015

When not one but several properties catch the eye as a potential investment venture and capital is the only obstruction to some serious gains, what do you do? Recent times have come up with a solution which goes past falling into debt or haggling with banks for a loan. Enter crowd funding. The successes of sites like Kick Starter have marked a new era of startups and accelerator programs. Instead of waiting for capital to come for a business to start, crowd funding allows entrepreneurs to focus on what they do best and leave the finances to the crowd.


How does that figure in the high-end real estate sector? Crowdfunding for real estate opens up paths where several investors can pool in their resources to acquire property rather than one individual raising the entire capital. This strategy points at benefits far beyond the mere capital break-down effect. For starters, it opens up the real estate market to new entrants by toning down the startup requirements. This allows novice investors to get the feel for the game and owning commercial real estate.


Another benefit crowd funding offers is the ability to spread capital across multiple options. This way investors can explore and expand into broader horizons as well as minimize chances of a full blown collapse which poses as a serious risk when you’ve got all your money in one place.


Commercial real estate investing can bring returns of up to 12%. Of course rates vary as based on tons of volatile variables. As mentioned earlier, numerous methods exist for real estate funding. However the essence of crowd funding makes it a very viable option. It follows all of the rules as laid and adopted by other asset management companies and REITs. Along with that comes the added plus of actually having something on your name, even if it’s a partial share.


If you’re new to crowd funding for real estate, you can check out different funding platforms online. Presently this segment has bloomed past the initiation stage and several sites are up offering crowd funding gigs and opportunities. While deciding on a crowd funding venture, note that the administrator will be doing most of the work. Thus signing up with an experienced company will ensure your money is well used and in the right properties for maximum returns.


As with all investment ventures, risk and exit strategies matter. Make sure you can sustain the investment over a sizeable period as property requires patience and isn’t as liquid as stock or REIT ventures. You can refer to our article on real estate investing for all to get an idea of what it’s like in the real estate market.