Investing in real estate has always been a viable financial strategy, but it has really peaked in popularity in the past few years. Real estate investing has become a less intimidating practice through online crowdfunding platforms for everyone to participate in. The only question is why you should start investing in real estate via crowdfunding in the first place. The following article mentions five reasons why you should join the crowdfunding community.
1. Time relieving and effortless
The most significant reason you should start investing in real estate via crowdfunding is that it is time relieving and effortless compared to more traditional methods. For instance, ‘flipping houses’ and selling them with profit includes; buying the property, renovating it, and finding a buyer. These responsibilities are often time-consuming and labour intensive. With crowdfunding in the mix, people can effortlessly invest in real estate without losing a lot of precious time. Together with hundreds of others, you can now enter the real estate market from the comfort of your own home.
2. More access to deal flow
Traditionally, accredited investors [link qualified investors] were the only ones to participate in equity crowdfunding. Non-accredited investors could only invest in real estate by buying physical property or investing in REITs (real estate investment funds). Crowdfunding makes it possible for investors to pool money together with others. Consequently, people can access deals that they usually could not participate in.
3. Lower minimum investment amounts
Another reason why investing in real estate through crowdfunding has become such a big hit, is because it is accessible for everyone. As crowdfunding lowered the minimum invest amount to as little as € 100, people with different backgrounds, income, etc. are all able to invest. Because of the low-entry, borrowers are able to raise funds with the help of a large group of investors. This means that barrowers who seek capital to realise their project now have a new funding source – one that is potentially faster and easier to close than a traditional bank loan.
4. Risk profiles for every appetite
A major benefit that crowdfunding carries is the ability to cater to everyone’s appetite. Crowdfunding offers a diverse supply of projects with its own perks and risks. What we mostly witness is that the higher the risk, the higher the reward and the lower the risk, the lower the return. Every project is versatile, and that is why real estate crowdfunding allows investors to find the amount of risk that is right for them.
5. Portfolio diversification
One of the best strategies to reduce risk is to create a portfolio that includes multiple investments. Thanks to crowdfunding, both novice and veteran investors can diversify their portfolios across a range of quality real estate investments. Moreover, investors can diversify across geographies, property types and even operating partners. In this sense, crowdfunding is positively changing real estate investing.
Max Crowdfund
These five benefits apply, of course, to Max Crowdfund. However, its innovation and transparency make Max Crowdfund stand out from other crowdfunding platforms. Furthermore, by being the world’s first crowdfunding platform run on blockchain technology, we value these qualities and move forward to make real estate investing accessible to everyone.
From as little as €100, people can invest in great investment opportunities with excellent annual returns. So what are you waiting for? Join our Max Crowdfund community by registering for free and start investing in your future. 5 Reasons Why You Should Invest In Real Estate Crowdfunding
Investing in real estate has always been a viable financial strategy, but it has really peaked in popularity in the past few years. Real estate investing has become a less intimidating practice through online crowdfunding platforms for everyone to participate in. The only question is why you should start investing in real estate via crowdfunding in the first place. The following article mentions five reasons why you should hop on the bandwagon and join the crowdfunding community.
1. Time relieving and effortless
The most significant reason you should start investing in real estate via crowdfunding is that it is time relieving and effortless compared to more traditional methods. For instance, ‘flipping houses’ and selling them with profit includes; buying the property, renovating it, and finding a buyer. These responsibilities are often time-consuming and labour intensive. With crowdfunding in the mix, people can effortlessly invest in real estate without losing a lot of precious time. Together with hundreds of others, you can now enter the real estate market from the comfort of your own home.
2. More access to deal flow
Traditionally, accredited investors [link qualified investors] were the only ones to participate in equity crowdfunding. Non-accredited investors could only invest in real estate by buying physical property or investing in REITs (real estate investment funds). Crowdfunding makes it possible for investors to pool money together with others. Consequently, people can access deals that they usually could not participate in.
3. Lower minimum investment amounts
Another reason why investing in real estate through crowdfunding has become such a big hit, is because it is accessible for everyone. As crowdfunding lowered the minimum investment amount to as little as € 100, people with different backgrounds, incomes, etc. are all able to invest. Because of the low entry, borrowers are able to raise funds with the help of a large group of investors. This means that borrowers who seek capital to realise their project now have a new funding source – one that is potentially faster and easier to close than a traditional bank loan.
4. Risk profiles for every appetite
A major benefit that crowdfunding carries is the ability to cater to everyone’s appetite. Crowdfunding offers a diverse supply of projects with its own perks and risks. What we mostly witness is that the higher the risk, the higher the reward and the lower the risk, the lower the return. Every project is versatile, and that is why real estate crowdfunding allows investors to find the amount of risk that is right for them.
5. Portfolio diversification
One of the best strategies to reduce risk is to create a portfolio that includes multiple investments. Thanks to crowdfunding, both novice and veteran investors can diversify their portfolios across a range of quality real estate investments. Moreover, investors can diversify across geographies, property types and even operating partners. In this sense, crowdfunding is positively changing real estate investing.
Max Crowdfund
These five benefits apply, of course, to Max Crowdfund. However, its innovation and transparency make Max Crowdfund stand out from other crowdfunding platforms. Furthermore, by being the world’s first crowdfunding platform run on blockchain technology, we value these qualities and move forward to make real estate investing accessible to everyone.
From as little as €100, people can invest in great investment opportunities with excellent annual returns. So what are you waiting for? Join our Max Crowdfund community by registering for free and start investing in your future.
