Add Diversity to Your Investment Portfolio through Crowdfunding

Add Diversity to Your Investment Portfolio through Crowdfunding

With more and more people looking for ways to earn extra income, most of whom would think purchasing shares in a closely held company as a way to go. This type of investment vehicle is called crowdfunding. It is where a network of people who pool their money to provide financial support to projects initiated by organizations or private individuals.

Crowdfunding engages people with a wide range of meaningful projects like funding a startup business, political campaigns, filmmaking, disaster relief operations, buying of real estate property, among many others. As of right now, crowdfunding is rapidly invading the real estate industry as the new way to buy and sell properties. Crowdfunding real estate is in fact the most talked about investment vehicle where you can buy shares from a company to own a piece of the real estate sold.

 Through crowdfunding, you can invest some of your money to buy a property that you once thought you will never own. This opportunity was once off limits to non-accredited investors due to the strict securities regulations of the Securities and Exchange Commission. So, today is the right time to take advantage of this opportunity while the price rates are still affordable although crowdfunding does not limit a person to invest even $100 of his income. Individuals who operate small businesses are like to benefit from this as they can pool thousands of dollars to buy shares and expect a greater ROI during the distribution process.

This holds true for crowdfunding real estate companies that are focused on initiating projects that involve high quality and large entities. For instance, a crowdfunding company wants to raise a project to buy an upscale apartment building. You could start your investment at $10,000 to become entitled to a portion of the property's profit from the tenants and the property's existing market value. Owning an apartment building these days is an impossible dream unless you are a real estate owner. Apparently, crowdfunding real estate gives chance to the public to own a piece of land without the need to buy the entire property.

 The typical real estate investment in the commercial market requires you to invest around $50 to $100K. Conversely, in crowdfunding real estate, you could spend as low as $5,000 into an asset and enjoy certain privileges. Crowdfunding also adds diversity into your portfolio, allowing you to have better control over your investments. You can easily choose certain investments across the country through crowdfunding. You can also own a couple of properties across the state while investing only a small portion of your money. For example, if you invest on a commercial market, you will likely spend $50K on one asset.

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