Whether you’re a new or intermediate investor, crowdfunding is a great option to explore!
It is a low risk way to invest in real estate without the duties of a property manager.
So what is crowdfunding, what are the types and how can it benefit you in your real estate investment journey?
What is it
Crowdfunding is a way to create income through real estate by pooling your money together with other investors. This can be done with private companies or online platforms.
There are two types of crowdfunding options available.
Debt based crowdfunding is when money is lent to the owner for a fixed interest rate.
Within equity based crowdfunding the shares of a property is bought, you will receive income from the rent being paid.
There are many benefits to come within crowdfunding, it’s a great option for low risk investors.
You can start crowdfunding for as little as $100.
Your risk can be reduced with multiple investments in your portfolio.
You can generate a line of income through this type of investment.
You don’t have to worry about tenant or maintenance issues.
When deciding your next real estate investment, consider adding this to your portfolio!