Crowdfunded real estate: Tips for small investors

[Markallen]

I own fractions of a percentage in a few apartments and houses in the UK.

The 'dividend' received monthly from rent, after all expenses and fees is equivalent to a ROI of 3.5% annually. It's not great by any means, but it's up to you if that will suffice your investment goals. The fact is, that kind of ROI is decent for buy-to-let real estate across Europe.

I am relying more on the speculation that the price of the property will increase over the years and thus increasing the value of my investment in this way. Due diligence that is worth making is going into a possibly underpriced neighbourhood that has potential for growth, such as a new school being built in the area/new metro station/new factory. As in all real estate, the 3 most important criteria are: location, location and location.

It is worth checking the annual growth of prices in the area which be found. My real estate investments have increased by 10-15% year on year on the House Price Index and I sure hope they will do so. Most crowdfunding real estate sites will provide plenty of information that will help you make your choice. Make sure to take into account all fees (such as transaction cost) before putting the money down, and don't forget your common sense: make sure the house has insurance and you are using a legitimate site.

For me, it is just a fun side project to diversify my portfolio, but you might be attracted by the "real" side of owning real estate, in which case go for it!

[karlvaan]

I like investing in real estate, but unfortunately I'm not rich to buy many different properties at once.

Thus, I have discovered real estate crowdinvesting platforms where I can choose the properties I would like to invest in and also allocate my savings accordingly. So far I have used real estate crowdfunding platforms which provide loans to the developers. I have used the following two: www.reality.com and www.coassets.com.

However, I just recently came across to a new platform BitOfProperty (www.bitofproperty.com) which has different approach to real estate investments. They allow you to invest in after-market real estate with little capital, get rental income and take advantage of capital appreciation. The cool thing there is that you can sell you investment whenever you want to other investors. I would suggest if you are interested in such model to keep an eye on www.bitofproperty.com . Seems like a cool concept.

[Liza]

Thanks for tips

[UtopiaManagement]

Great tips.

[Boris]

Thank you useful article.

[vanvulinh01]

topic's great , thank you for the posts

[ChildAbductionCourt]

It's pretty incredible that real estate projects have been funded through crowdfunding.

[aragom]

You should have perfect knowledge about the company in which they are investing