What Is Crowdfunding Real Estate?

Probably the most important innovation in real estate investment in the last few decades, crowdfunding real estate platforms have been getting a lot of publicity lately, from sources as large as Bloomberg and Forbes. What is all the hype about? Read on to find out more about how crowdfunding real estate is changing the real estate investment game – and how you can get in on it, too! You may be familiar with crowdfunding from websites such as GoFundMe and Kickstarter. In short, crowdfunding is a way of allowing a large number of people to contribute small amounts of money to a big project. This has led to excellent results for artists, musicians, and filmmakers, as well as for many people trying to raise money for larger projects, whether home repairs or medical expenses. Crowdfunded real estate platforms take advantage of this mechanism for the purposes of making real estate investment simple, accessible, and efficient – for a wide variety of people. In the past, real estate investment required very large initial investments: often, six figures or more. Another barrier to entry was the fact that most real estate transactions occurred as a result of preexisting personal connections. Since real estate couldn’t be traded publicly, most deals happened between the already well-connected and wealthy. This blocked off the whole world of real estate investments to those who weren’t already part of the inner circle of the wealthy and elite. Now, on the other hand, with crowdfunding real estate platforms, everyone can get in on the real estate market. Crowdfunding real estate platforms rely on a number of individual investors working closely with a team of experts to split real estate investments amongst themselves. This means that each property, instead of requiring a single investor, can be invested in by a number of different people. Splitting the costs of multiple properties with a number of other investors means that the process becomes less risky, as you can diversify your portfolio more easily, and means that the barrier to entry is a lot lower. Many crowdfunding real estate platforms, such as NashvilleOpportunity, often require an initial investment of only a few thousand dollars, as opposed to the hundreds of thousands or even millions of dollars that real estate investment used to need. Additionally, the more democratic process of crowdfunding real estate is useful for the purposes of increasing transparency and security in the real estate investment world more broadly. When working with so many investors, none of whom the property seller probably knows already, as well as a team of experts, everyone involved is more likely to be committed to transparency in the transactions. This is one of the ways that crowdfunding real estate isn’t just good for the people who are now able to invest – it’s good for the industry as a whole! In conclusion, crowdfunding real estate is among the most disruptive (not a word to be used lightly) recent developments in the real estate investment world. More and more people are getting in on what used to be a pursuit reserved for the extremely well-connected and wealthy. Why not give it a go and register with NashvilleOpportunity today? With as little as a $5,000 initial investment, you too could be investing in some of the biggest housing markets in the country.

Leave a comment