Everything you need to know Real Estate before entering this universe of how to invest in Real Estate Crowdfunding.
In recent years, the number of long-term stock and equity investors has increased considerably. In this scenario, much has been said nowadays about the so-called real estate crowdfundingwhich is increasing the real estate market, providing both medium and small investors with the opportunity to invest and purchase goods abroad, such as the United States of America or several countries on the continent European.
What this article covers:
How does Real Estate Crowdfunding work?
It is through this type of investment that development projects can issue bonds to finance the construction of the enterprise, creating opportunities for the common investor, with a concrete potential for considerable returns.
The investment can take place in four different ways: donation – the most common format of the real estate crowdfundingreward, equitycrowdfunding and debt crowdfunding. Through it, the common investor can become the owner of a part – albeit small – of the asset, always profiting from a percentage of the profits derived from the property traded.
And for those who want to enter this universe, how to get the desired access to the investment they want to obtain? There are currently on the market online platforms based on real international assets able to make this dream come true.
How to invest in Real Estate Crowdfunding?
For those who want to be part of the universe of real estate crowdfunding, the first step is to choose the online platform through which access to the market will be made possible. This virtual environment is precisely who will identify the properties suitable for investment, carrying out the necessary diligence and verifying the potential risks of each of the locations.
In a second moment, financial resources are raised, offering the property launched on the platform, offering interested investors to use their values until the target sum is reached. After acquiring the property, it is time to prepare it for the market itself, so that it can be leased.
Without needing a manager to control your money, autonomy is one of the characteristics of collective investment, allowing the investor to have complete clarity about where their money is being invested, what the risks and guarantees and market forecasts are, without having to pay exhaustive fees during your process of investing money in real estate and increasing the return on your investments. If that weren’t enough, profitability is fixed and accessibility is also inviting.
Who can invest in Real Estate Crowdfunding
In other words, anyone can invest in this market and, as buying a property requires very high capital, the crowdfunding real estate it is a faster and more affordable form of investment. In addition, some projects offer a higher return than traditional assets.
Brazilian Real Estate Crowdfunding Investment Market
But, and in Brazil, what do you have to say about the real estate crowdfunding??
Well, around here, this innovative way of investing has gained several names, such as virtual kitty?? crowdfunding?? collective investment, and many others. There were so many interested parties and the frequency of demand is such that internet users and – in this specific case – would-be investors, have already become familiar with the terms used, entering the market little by little and confirming the rise of this market.
Indeed, it was precisely with the regulation of the crowdfunding in Brazilwhich took place in 2017 (two thousand and seventeen), that collective investment began to increasingly attract the interest of investors who sought to apply their resources in alternative ways.
O real estate crowdfunding in Brazil it became, therefore, a direct and collective investment in solid enterprises with high potential for return. All this with a view to specific projects, such as investing in a company that will build and sell houses or acquire cattle for export to Europe or the United States of America, for example, in addition to many others.
The particularity that it is easy to see that, as they are unique opportunities linked to the real economy, they deviate from the traditional pattern of investing in fixed income or stocks. And that is precisely why the real estate crowdfunding is part of the so-called alternative investments and continues to grow in Brazil.
Finally, it is thanks to portfolio diversification, that the investor chooses a greater number of properties in which to invest. And it is precisely this diversification of the investment portfolio that generates greater security in the process. In this way, in the first month of the lease, the rent payments are received by the managing agents and sent to the digital platform, which will be responsible for the distribution among the participating investors.
How to invest in real estate crowdfunding in the United States?
Specifically for those who want to invest in the real estate market in the United States of America, it should be noted that the real estate crowdfunding has been increasingly confirmed in the field of the local real estate market, reaching the purchase and sale of goods in that country with ease. And so, increasingly, online platforms backed by international real assets can enable the desired access to the intended investment also in American lands.
In conclusion, it is certain that compared to the more traditional investment models in the real estate sector, the trend is that the real estate crowdfunding continue to democratize the market and continue to stand out for being much faster and more flexible than other types of investment. This is all not to mention the fact that it has a particularly low cost and is easy to publicize. In this regard, it is speculated that the segment of real estate crowdfunding just grow for the next few years. It is time to invest and wait, therefore.