There are many advantages that come with property crowdfunding when it comes to investors. The experts at Luxe Crowdfunding are here to explain what they are. Available to investors all across the United States, we take pride in being the best commercial real estate crowdfunding.
What is Crowdfunding?
Crowdfunding is a way for business owners to raise money, not by asking one investor for a huge investment, but by reaching out to a large pool of investors who each contribute a small amount of money. A key difference between crowdfunding and more traditional methods of raising money, is in the platform used, as crowdfunding is usually done online.
Along with crowdfunding websites, business owners turn to social media platforms such as Facebook or Twitter to market their ventures directly to wider audiences of interested investors.
Real estate investors have adopted crowdfunding as an alternative to more traditional means of financing investments. For example, large developers are using crowdfunding platforms to solicit investments from groups of accredited investors, while small business owners have launched campaigns to raise funds for smaller investment deals. The section below illustrates why crowdfunding has grown in popularity amongst real estate investors in recent years.
What Are The Advantages of Property Crowdfunding
The use of crowdfunding as a way to participate in real estate deals is growing in popularity and the volume of money invested. The reasons for this growth are many, including:
- Availability of low-levels of investment:Investors can find multiple offerings with a wide range of amounts needed to participate. Some projects are available with as little as 500 Euro units.
- Short-term investment periods: There are a wide range of investment options for periods as short as a year and seldom over 36 months. This avoids the traditionally longer-term periods involved, especially if buying a property individually.
- Absence of investment fees: An attractive feature of most crowdfunding opportunities is that there are no investment fees. When investing in REITs or buying an individual property the fees can be substantial, and these expenses eat in to the profitability of each investment. With no investment fees, a crowdfunding ROI is often much more attractive when comparing final numbers.
- Transparency of the transaction:Members of a crowdfunding project know exactly where their funds are going and to which property. While the crowdfunding itself is a pool, it is very different from the larger real estate investment pools that spread money over a large number of properties and even countries.
Call Us For Commercial Real Estate Crowdfunding
If you are interested in learning about property crowdfunding or even want some information on it advantages, be sure to call us today! We are one of the best crowdfunding sites that have advice on how to invest in real estate online. Here at Luxe Crowdfunding, we are entirely here for you. Our commercial real estate crowdfunding experts have the best expertise in the United States. We endeavor to excel in every service we provide, adding value for our investors wherever possible, and thereby succeeding nationally in the construction industry. We offer the best places to invest in real estate in the United States.