Real estate crowdfunding picks right now: Secondary market is an important feature to taking into consideration which choosing a real estate crowdfunding platform. This is a function, which allows to place you investment on sale during project implementation phase. It is a nice feature which allows to reduce you investment risk. And also allows for certain investors to build additional investment strategies based on the secondary market offerings. Various investment platforms apply different thresholds for minimum investment amount. If you don’t want to go all in, look for platforms which accept relatively low investment threshold, e.g. 50 EUR or 100 EUR. This is more important for beginner investors while choosing a real estate crowdfunding platform. See additional details at real estate crowdfunding platforms.

Reasons that individuals may be interested and exploring in these types of real estate opportunities include: Chance to diversify assets and investment portfolio holdings; Low startup capital required as compared to traditional real estate investments; Shared cost structure enables financiers to invest in larger property holdings than they’d typically have access to; Risks associated with ownership are split among multiple stakeholders; Access to new and/or exclusive opportunities; Ability to hold commercial real estate or real estate portfolio holdings in addition to residential properties; Offers exposure to real estate market without the need to personally provide upkeep and maintenance; No need to individually qualify for, obtain, and make regular payments on a mortgage; Does not require owners to personally guarantee loans with property and assets.

DiversyFund’s model is unique in the real estate crowdfunding space. Instead of serving as a broker that connects investors with projects, DiversyFund buys, develops, and manages a portfolio of properties, collects the cash flow, and divvies up the profits amongst its investors. Unlike some crowdfunding platforms, it doesn’t charge any management or broker fees. Currently, you can invest in the DiversyFund Growth REIT ($500 minimum).

Duration always depends on the investor needs, for how long capital provider is looking to employ the capital. But it is expected that shorter duration of the real estate crowdfunding project should give low risk because of the above described aspects. The shorter the duration, the better. Average ticket size is an indicator calculated by Crowdbulls platform. Ticket size stand for a capital amount allocated for the project by an investor. We calculate it by dividing total capital raised by number of investors. This gives a feeling on the investor profile, who is investing in the real estate crowdfunding project. The bigger the ticket, the larger the investor is potentially investing in the platform. Typically investors, who are investing larger portfolios are allocating larger tickets. It is believed, that larger investors has a larger investing and risk assessment experience, thus they tend to asses the actual risk profile better.

CrowdStreet: One of the more well-known real estate crowdfunding sites, CrowdStreet provides accredited investors with access to commercial real estate projects that look to deliver high returns on investment. CrowdStreet also provides some minimal due diligence for investors in the form of conducting background and reference checks on developers wishing to solicit their financial contributions. Nonetheless, whether you’re looking to invest in funds (which hold a variety of different real estate projects within them) or individual properties, many offerings require a minimum investment of $25,000. Likewise, any sums that you choose to invest may remain illiquid and have to sit untouched for a period of years.

Traditionally, equity crowdfunding was only open to accredited investors. Accredited investors include banks, pension plans, insurance companies as well as affluent, sophisticated investors. For an individual to qualify as an accredited investor, the person had to earn $200,000 or have a net worth that exceeded $1,000,000.1 One of the benefits to crowdfunding is that it doesn’t take a large amount of money for investors to get in—and in some cases—the minimum is $1,000 dollars to invest in a company. Also, if the company eventually goes public, meaning they issue new stock via an IPO or initial public offering, there could be an enormous potential for investment gains. Read even more details on crowdbulls.com.

Crowdbulls is a real estate crowdfunding platforms tracker. In addition to tracking new projects, funding progress, interest rates, we track overall development of the platforms in scope and calculate various KPIs. What is a real estate crowdfunding project? Real estate crowdfunding project is real estate development project, for which capital is being raised via real estate crowdfunding platform. Typically, developers of such projects cannot get bank financing, therefore is moving towards more expensive way of raising capital. In exchange for capital, project developer is pledging real estate assets (land or construction).