Real estate, the industry we all know and love. It provides us with a home and secures our daily lives with ease. Many real estate agents and owners make a great deal of profit on the buying and selling or renting of homes and offices. Evidently, buying and owning real estate is a much more complex type of investment than say, stocks, or bonds, but I’m here to tell you how you could get in on this too. Who said finance had to be difficult?
There are many ways of profiting from this prominent industry; but like you may have guessed, it comes at a price. Generally, if you want to invest in housing, you need a starting capital of at least 200K. We won’t go through the classic landlord, homeowner, and agency type of structures since they have been long in place and chances are you’ve been involved in them one too many times but what I can do is offer you a solution to both the above issues.
The “I don’t have that kind of capital” solution lies in one of the wilder investment structures – crowdfunding. So, what exactly is crowdfunding? Simply put, a web-based group investment strategy whereby investors share the costs and, of course, the profits. Why are people choosing to do this? Well, isn’t it obvious? You can buy in for much less and be a part of a project that would otherwise be out of the question.
Crowdfunding has done great good to many start-ups, and the real estate industry, according to Founder and CEO at RealtyMogul, Jilliene Helma, is absolutely catching on. And why would it not? The food industry went from offline to online, the same thing happened to the fashion industry, which blew up, and now – it’s time for Real Estate. Real Estate Crowdfunding became a BILLION DOLLAR industry in a very short amount of time, a few years to be exact, and the reasons why it will blow your mind.
Why is investing in Real Estate so great? Glad you asked. If you’re already investing, you must have heard this one before – “diversify your portfolio,” and it’s true, it’s just silly put all your eggs in one basket. No investor can consistently predict market crashes, so why not hedge your bets with something secure, something that isn’t sensitive to the market’s white noise and volatility? Something like Real Estate.
Let’s get back to the landlord – agency structure we mentioned before. Let’s also face that it’s not much fun to have to deal with the management hassles. With this approach to real estate, you can own property without the responsibility of owning it. The deal sponsors can handle that.
Historically, real estate investing has only been available to individuals of high net worth or otherwise known as the elite. As we previously mentioned, most people don’t have 20K lying around, and it’s left them out in the cold. Crowdfunding has not only addressed but solved this issue. Do you want to invest $50K in 5 different markets across the world? It can be done. Do you feel like the housing market is booming in Germany, but you live in Italy? It doesn’t matter; it can still be done, just handpick your investment and buy-in.
Crowdfunding really is the most innovative approach to making money. Who doesn’t want profits without the insane risk? Through real estate crowdfunding, you dictate your risk appetite; you dictate the terms of your investment. If you’re not Googling for more right now, what are you waiting for? You owe it to yourself.