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  1. #11
    Great project that I hope gets funded.

  2. #12
    Junior Member
    Join Date
    Jun 2015
    Posts
    13
    I seriously like to know how much percentage of entrepreneurs are in real estate investment?

  3. #13
    Junior Member
    Join Date
    Jul 2015
    Posts
    6
    The rise of crowdfunding, finally made possible through the JOBS ACT, has made new opportunities available for everyday investors to participate in multi-million dollar real estate investment deals for a fraction of the price, while sharing returns pro rata. Historically, the only way for investors to participate in the real estate markets was through institutional investors, who clobber returns through massive fees, or through Real Estate Investment Trusts (REITS). These publically traded REITS are still actively traded today, but a moving trend towards private investments and away from these publically traded trusts is clear.

    Real estate crowdfunding focuses on these private investments and democratically gives investors a way to participate in them. The reason that so many investors and institutional firms are putting so much money into private real estate investments rather than into REITS is because of the spectrum of benefits offered. The main reason that investors are attracted to REITS is because of the supposed liquidity offered through a publically traded equity. However, the reality is that most REITS are not that liquid. Only the very top REITS see high volume trading while most of the smaller ones pose the similar illiquidity that private real estate investments experience.
    Furthermore, the fact that REITS are publically traded creates an underlying disconnect; the prices for these real estate trusts are driven partly by market sentiment rather than just the value and management of the properties. Traditionally, one of the benefits of investing in real estate is the fact that your investment should be a tangible one, generally independent of equity markets. Unfortunately, REITS do not offer many of these traditional benefits.

    Another appealing aspect to private real estate investing is the opportunities available for high and aggressive growth strategies. REITS mainly focus on safe and stable core investing, which makes it hard for investors to participate in the potentially very lucrative value-added and opportunistic investments that exist in the real estate investing world. Crowdfunding, on the other hand, sources deals all the way from a stable income generating multi-family home in a small town to a ground up office building construction in a large metropolitan city. The opportunity to take on more risk for higher potential returns is not one for everybody, but the option is available in private investing whereas it generally does not exist through REITS.

    Lastly, because of the structure and legal provisions that make REITS possible, they are required to distribute at least 90% of their taxable income to their equity holders. Although at first sight this may seem like a very attractive quality for investors, the reality is that because of this provision, REITS struggle with the availability of capital. This poses serious risk during economic downturns, like during the subprime mortgage crisis in 2008. REITS massively suffered during this time because they were unable to refinance their debt due to the lack of capital available; the most profitable REITS such as the Vanguard REIT Index Fund saw losses amounting to over 100%.

    Although REITS have bounced back from their deficits from the 2008 crisis and have once again become a powerful outlet for investors to diversify into real estate investing, private investing still seems like the better option to truly diversify into real estate investing. With the rise of crowdfunding, investors now have the choice to pool their money together to participate in real estate private equity or to continue to play the markets and invest in REITS.

    Check out http://endvest.com for some more information on REITS vs. Crowdfunding and to see some interesting deals.
    Last edited by ericdonovan; 07-20-2015 at 02:37 PM.

  4. #14
    real estste crowdfunding is like REIT, but it is eREIT, you pick properties you wnat to invest in,

  5. #15
    I think it's indeed a worth a look. I'm planning to prepare a similar content for my blog. Thanks for a nice article share.

  6. #16
    Junior Member
    Join Date
    May 2016
    Posts
    5
    Thank you.. I hope it is................................................

  7. #17
    crowdfunding is great choice as per my personal experience !

  8. #18
    Junior Member
    Join Date
    Sep 2016
    Location
    Salt Lake City, UT
    Posts
    24
    Investors have a ton of options when it comes to real estate crowdfunding, mainly because the investors are not restricted to a single project or a real estate company. They can spread a couple of smaller investments across several projects or companies, and this way, reduce any underlying risks. This is great because, if one real estate investment project fails and does not meet your expectations, you will still have other investments that have the potential to be successful.

  9. #19
    Junior Member
    Join Date
    Oct 2016
    Posts
    6
    For these investments for REITS or crowdfunding, REITS are more offline than online right? With the rise of digital finance, could there be an opportunity to pursue these in an online platform?

  10. #20
    dichthuatmientrung.com.vn
    Join Date
    Feb 2017
    Location
    http://dichthuatmientrung.com.vn/dich-thuat-tieng-anh/
    Posts
    3
    I think it hard to do that

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