Crowdfunded real estate: Tips for small investors

[rick12]

Great tips. Thanks for sharing, those might help beginners

[harrisong45]

Both are sharing best tips. Real estate investing is a business, and you ought to regard it all things considered. Begin by building up a decent strategy for success, itemizing the subtleties of beginning and maintaining your business, with practical objectives after some time edges of one, three, five and 10 years.

[john williams]

Too many variables to answer in my opinion. What are the assets being purchased? What is the crowd funding platform's costs? In the real estate multiple property purchases programs that some hedge funds participated in, often the buyer was only given 30 days to do their "due diligence." In a several hundred/thousand unit purchase, this is a very short time period, so the purchaser often relies on public data records, existing data from the seller and BPO price opinions from brokers to make final decisions. Not to forget of course, they often bought these assets at 55% - 60% of book value that were spread out around the country.

[lantran]

Thanks for sharing, Both are sharing best tips.

[harrisong45]

Investing in real estate is a decent approach to enhance your property but on the other hand it's important to enhance your risk as well. Measuring the potential returns against the projected risk can help you determine whether debt or equity investments are more appropriate.

[Kulikov]

Investing in real estate is a decent approach to enhance your property but on the other hand it's important to enhance your risk as well. Measuring the potential returns against the projected risk can help you determine whether debt or equity investments are more appropriate.

Are there more risks than in other types of investing and why? Could you elaborate, please?

[MrYes]

Thanks for the info!

[harrisong45]

Are there more risks than in other types of investing and why? Could you elaborate, please?

Property investment is often described as safe as houses. Yet there are risks, for example:

A lender can ask us to repay the mortgage unexpectedly and we may not be able to sell, or sell for enough to cover the mortgage.

If the investment property is mortgaged with the same bank as our own home, there is the risk that the bank could sell both properties if we run into difficulty with paying either mortgage.

We might need, for some reason, to sell the property at a time when it has dropped in value, and be left still owing the lender money after the sale.

[harrisong45]

You have share such a great tips!

[tmdingram]

Thanks for sharing!