What is crowdfunding?
If you’re tired of low returns on certificates of deposit, the Thrift savings plan, and other equity investments, check out Crowdfunding for double-digit returns. Crowdfunding is gaining popularity as an investment strategy for many investors. It is a unique process to raise capital through family and friends, potential clients and individual investors looking for different investment places. To promote crowdfunding advertising is a focused approach using social media and real estate investor forums and partner networks.
Which platform is right for me?
My preference is Crowdfunding with real estate investments that I will talk about here. There are many different crowdfunding platform strategies and models out there, so you want to make sure the platform you select is right for you. Ask yourself the question: Am I comfortable with the amount that I will invest? Do we share the same values? Do you agree with their investment strategies, such as selling houses or buying and holding for long-term passive income? The amount required to invest will vary with each location, so shop around until you find one that’s 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’re up to on social media. How transparent they are and how willing they are to talk to you and answer your questions, including the tough ones. Those who are more willing to share beliefs, management, and goals tend to do better for themselves and their clients in the long run. Also reach out to other investors to get their opinion and endorsement.
do the math
I have seen many attractive returns advertised and only found out that they were more attractive rates for me to call. Do your homework to see if the numbers are realistic. Ask how many details are provided about the business. How can I access my investment and returns after committing? How and when are investment returns distributed? What kind of reports (personal and legal) are provided to the investor? Make sure you feel comfortable with the management team and the security of your investment before taking the first step.
Example of crowdfunding
I personally invest with Holdfolio. Its buy and hold platform consists of 10 rental homes within a single portfolio. These houses are bought, rebuilt for rent, and then leased. 60% ownership is provided to investors (the crowd) with a minimum investment of $10,000. 40% ownership is held by Holdfolio’s management team. The advertised returns when I invested over a year ago were 10-14% and I currently get a return of 11% per year. With each new portfolio, an additional 10 homes are offered to investors at an average crowdfunding pool amount of $320,000, typically completed in 4-5 days. Portfolio 10 and is starting Portfolio 11 soon. This is just one example of many crowdfunding platforms.
Summary
Real estate crowdfunding is rapidly becoming more popular today as investors turn away from stocks to seek higher returns in other markets. Be sure to do your homework and limit your search to the top three. If this is your first time, once you make your selection, start with a smaller amount until your comfort factor allows you to do more.
