Owning property is perceived as a universal sign of wealth. However, many people don’t know that you don’t have to be a homeowner of multiple properties to make a profit. Therefore, investing in property through real estate crowdfunding platforms has become a simple way to earn a passive income. In this article, therefore, we explore how to invest in real estate via crowdfunding.
Real estate market
The real estate market is, for many, an intimidating or otherwise even unknown place. A place where only players with ‘big money’ and knowledge about the stock market are taken seriously. This, however, is not the case anymore. The real estate market has developed into a much more open community. The real estate market has, therefore, become a place where people with different backgrounds can invest and make a profit.
A variety of real estate crowdfunding platforms are, in particular, facilitating the accessibility to investment opportunities. The transformation of the real estate market is due to the appearance of ‘crowdfunding’. The concept of crowdfunding allows a vast number of people to invest tiny amounts of money. The minimum investment varies from platform to platform.
Crowdfunding offers an opportunity for investors to band together, pool their funds and invest in property. Important to note is that you don’t have to be an accredited investor to do so. Raising money together makes investing in real estate through crowdfunding a whole less labour intensive and time-consuming. Especially compared to other active ways of investing in real estate, such as flipping houses.
Nowadays, we witness that the crowdfunding community is getting bigger by the minute. Especially after the global pandemic, investors are looking for low-risk investment opportunities such as real estate. Additionally, many crowdfunding platforms allow you to diversify your investment portfolio. This is possible because you can invest in multiple real estate projects, reducing the overall investment risk.
There are all sorts of real estate crowdfunding platforms out there, each with its own method of operation. For instance, some investment platforms appoint a limited amount of autonomy to their users.
In this sense, the platform acts as a mediator between investors and projects. More specifically, they are in charge of allocating the user’s investment to the best real estate opportunity. Investors, in turn, buy something called loan receivables. Loan receivables are funds that a company has lent. The expected return is usually within one year.
The majority, however, sticks to the same format of having their users invest in various real estate projects themselves. This way, people can manage their own investment wallets and decide in which investment opportunity to participate. Many of these crowdfunding platforms are continuously under pressure to offer the most exciting projects and the best annual returns.
Overall, these fintech companies have taken over the 21st-century real estate market. The high tech tools they have brought to the table have made investing in real estate much easier.
Max Crowdfund is among those fintech companies that have made real estate investments a lot more manageable and accessible. Yet, what sets Max Crowdfund apart from other platforms is its innovative quality. Accordingly, Max Crowdfund is the world’s first crowdfunding platform that uses blockchain technology in its services. Furthermore, besides offering its customers excellent returns on crowdfunded investments, they also provide them entry from as little as €100. These aspects align with our mission to make real estate investments more transparent and accessible to everyone.
To start your real estate investment crowdfunding journey, please visit Max Crowdfund and register for free. You can read how easy it is to make an account here. From that point onward, investing in real estate becomes, literally, just one click away.
Written by: Roos van Beek