What is Crowdfunding?
If you’re tired of the low returns on Certificates of Deposit, Thrift Savings Plan, and other capital investments, check out Crowdfunding for double-digit returns. Crowdfunding is gaining popularity as an investment strategy for many investors. It is a unique process of raising capital through family and friends, potential clients and individual investors looking for different investment sites. To promote crowdfunding, advertising is a focused approach that uses social media and real estate investor forums and related networks.
Which platform is right for me?
My priority is Crowdfunding, with the real estate investments I will discuss here. There are different strategies and models for crowdfunding platforms, so you want to make sure that the platform you choose is the right one. Ask yourself: Am I happy with the amount I will invest? Do we share the same values? Do you agree with their investment strategies, such as demolishing their homes or buying and holding them for long-term passive income? The amount required to invest will vary from place to place, so buy one until you find one that is right for your investment portfolio.
Do your homework
Do your homework before you invest. Historical performance is a good indicator of future performance. Meet the management team and see what they are doing on social media. How transparent they are and how willing they are to talk to you and answer your questions, including the hard ones. Those who are willing to share their beliefs, management, and goals tend to do better in the long run for themselves and their clients. Also contact other investors for their input and support.
Do Math
I’ve seen a lot of attractive returns being announced to find out what the tickler rates were for calling. Do your homework to see if the numbers are realistic. Ask how many details are given to the business? How can I get my investment and profits back on track? How and when are investment returns distributed? What kind of report (personal and legal) is given to the investor? Make sure you are comfortable with the management team and the security of your investment before taking this first step.
Crowdfunding Example
I personally invest in Holdfolio. The buy-and-hold platform consists of 10 rental homes in a single portfolio. Buy these houses, rebuild them for use and rent them out and then rent them out. 60% ownership is given to investors (crowds) with a minimum investment of $ 10,000. 40% owned by the Holdfolio management team. When I invested more than a year ago, the advertised earnings were between 10% and 14% and now I am earning 11% every year. With each new portfolio, 10 additional homes are offered to investors in an average crowdfunding amount of $ 320,000, which is typically met within 4 to 5 days. Holdfolio has just completed the 10th portfolio and the 11th portfolio will start soon. This is just one example of many crowdfunding platforms.
Summary
Real estate crowdfunding is on the rise today as investors move away from stocks and seek higher returns in other markets. Make sure you do your homework and limit your search to the first three. If this is your first time, start with a smaller number until you make a choice until your comfort factor allows you to do more.