Real estate partnerships
The real estate partnership is a very interesting investment. In principle, it is a pooling of material resources and goods for a common project. Partnership is undoubtedly strength in real estate. To be successful, you have to bring the right people together and seek out the best opportunities. If the deal is good, you will more easily make money.
The acquisition of a multiplex, residential or commercial, often requires a significant fund which is not within the reach of all. The main advantage of the partnership is therefore to consolidate the investment more easily. And then, who says purchasing power says ability to acquire more buildings. This form of investment can therefore prove to be very profitable.
In addition, collaborating with other investors is a perfect springboard to get started and succeed in real estate investment. Especially since with the real estate partnership, you will not have to bet everything from the first transaction. The risks of making a bad investment are therefore limited. As a bonus, you benefit from the experience of other often experienced investors.
The only small drawback to this kind of association, which says mutualisation of risks, says mutualisation of conflicts. That’s why you need to know the person you are collaborating with well.
Real estate crowdfunding
Real estate crowdfunding is a form of investment that is becoming more and more fashionable. It is a short-term investment that is both flexible and profitable. Indeed, the returns generated by real estate crowdfunding are very attractive, around 8% to 12% per year. The average investment period is between 18 to 24 months. In addition, it does not imply a prolonged blocking of invested funds.
This type of real estate investment does not require the immobilization of large sums. This means that it can be subscribed to by several investors at the same time. While the minimum investment for investments offering the same profitability is usually significantly higher.
In addition, unlike traditional real estate investments, real estate crowdfunding is dematerialized. Clearly, investors do not buy real estate. Instead, they buy debt securities from the real estate project developer. The investors are then relieved of any management problem such as works, staff remuneration, sale of real estate in the program, etc.
And finally, real estate crowdfunding helps to finance the real economy. Until now, it was reserved for informed and wealthy professionals. Currently, it represents a new face of the real, non-elitist economy. This allows investors with a low income to be able to enjoy this form of very profitable investment.
However, like any type of investment, real estate crowdfunding also comes with risks. Indeed, not all promoters are experienced. Poor workmanship, delays in work, mismanagement of funds can occur. Which can completely compromise a site.
Crowdfunding options are:
DiversyFund allows you to invest in private market assets such as real estate for as little as $ 500. DiversyFund is proud to offer profitable and affordable mutual funds to all clients, not just the very wealthy. With no management fees, net worth caps and a mission to democratize the investment landscape, DiversyFund is a great choice if you are looking to invest in real estate on a budget.
With the online platform Fundrise, you can invest in real estate for as little as $ 500. This means that non-accredited investors can purchase real estate without paying large commissions to real estate brokers. When managing your own wallet, the commission is as low as 1% and Fundrise offers a 90-day satisfaction guarantee.
Streitwise allows you to invest in real estate for as little as $ 1000. The platform is open to earnings that you pay and its historical average is 9.8%. You can view past investments on the site to get an idea of the types of properties that Streitwise is buying. All properties and tenants are thoroughly vetted to ensure that your investment is protected.
If you prefer to manage your own investments, Crowdstreet could potentially be the best for you. You browse real estate offers and choose options to add to your portfolio. However, if you wish, you can outsource the portfolio creation process to an internal consultancy team on Crowdstreet. They will select the investment that best suits your financial goals.
Realty Mogul is another real estate crowdfunding option that gives you access to highly vetted commercial and retail properties as well as multi-family properties. You can also invest in real estate investment funds (REITs) as long as you meet the initial investment requirements. For individual investments, the minimum investment requirements range from USD 15,000 to USD 50,000.
Is it worth investing in real estate crowdfunding?
Real estate crowdfunding provides an easy way to invest small amounts and generate impressive returns. But it’s important to remember that real estate investing is inherently risky and crowdfunding is still a relatively new concept. So you have to keep that in mind.
Real estate crowdfunding may not be the kind of investment you can put your savings into – or even a large percentage of your assets. But you might think about it if a few thousand dollars is a small percentage of your portfolio and you are looking for a high-risk, high-risk opportunity. Of course, real estate crowdfunding platforms like Fundrise and EquityMultiple offer attractive investment opportunities in a variety of real estate projects with the potential to truly diversify your portfolio.