Commercial Real Estate Crowdfunding: An Alternative to Traditional Real Estate Investment

By | May 14, 2020

Unlike stock investments, real estate investments have been the preferable option for various investors, more so when commercial real estate crowdfunding was introduced a few years ago. The main reason for this is that when it comes to the real estate market, it is considered stable and less volatile as compared to the stock market. 

With this in mind, various investors have shifted to real estate. But with the introduction of different types of investments such as crowdfunding, many now wonder what type of real investment will work well. Is it commercial real estate crowdfunding or traditional real estate investment? 

To understand them more, here are some things you should remember:

Availability

With the advent of technology and crowdfunding, real estate investments are now more open to all investors. Before, the real estate market was only available for the professionals, and now it is readily available to all if they have the means for it. Commercial real estate crowdfunding also provides investors the opportunity to invest in properties that they wouldn’t have been able to afford. The availability that crowdfunding platforms now provide makes it very useful to all investors.

Lesser Capital

As already mentioned, crowdfunding gives them access to properties they couldn’t invest in individually. As investors in a crowdfunded real estate deal, they would have to meet lower capital requirements since the burden doesn’t just fall on one person but to a group of investors. Straying away from the traditional real estate investments has done the real estate market good. This is because the crowdfunding market is estimated to be worth $2.6 billion worldwide. It has paved the way for non-accredited and non-professional investors since there is no requirement for large amounts of capital.  

Convenience

One of the great things about crowdfunded real estate deals is that as an investor, you can relax since all of the management and operations of the property will be left to the sponsor. They will be the ones who will maintain the property, submit the necessary paperwork, and then ultimately sell the property when needed. As an investor, your responsibility is to provide capital, and in turn, you will receive a proportionate share. It is a win-win situation for all parties involved.

Online Platform

Because of the internet, real estate investment is no longer confined to physical companies. You can find online platforms you can communicate with so that you can start any investment. It is advantageous for commercial real estate crowdfunding for that matter because investors can look for favorable deals online. It makes the process easier for them, and they can even research credible crowdfunding platforms by browsing through the internet. 

Look for the best investment firm today and be an investor for a crowdfunded real estate deal. Branch out from your traditional real estate investments and take advantage of commercial real estate crowdfunding. Find firms that are meticulous in their advertising deals and have a strong reputation, such as First National Realty Partners. They provide full transparency and can help you make the best investment deals. It is always better to do it with the help of professionals rather than doing it alone. This is because they have more expertise and knowledge in this kind of industry. 

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