The downside to real
estate crowdfunding compared to stocks and bonds is that you can't get in and out of investments quite as easily.
Not exact matches
The internal rate of return (IRR) is one of the most common metrics used in real
estate crowdfunding and therefore one of the easiest to
compare deal to deal.
Although a total of $ 800,000 in real
estate crowdfunding sounds like a lot, I view it as buying a $ 800,000 portfolio of 12 + different properties across the country at much lower valuations and much higher net rental yields
compared to having $ 2,740,000 in one very expensive rental property in San Francisco that is now at risk of depreciating due to declining rents and new tax legislation that limits mortgage interest deduction and SALT deduction.
On the SD IRA custodian side, I've noticed a couple of them have setup specific «plans» for people investing in
crowdfunding sites — these «plans» have significantly lower fees for
crowdfunding deals
compared to other SD IRA investments, so you end up paying significantly less to put $ 50K in a
crowdfunding platform vs. $ 50K in a direct real
estate deal or $ 50K in gold, for example.
If you're looking for other options, we
compare all of the major
crowdfunding real estate platforms here: Top Crowdfunding Real Estat
crowdfunding real
estate platforms here: Top Crowdfunding Real Estate Comp
estate platforms here: Top
Crowdfunding Real Estat
Crowdfunding Real
Estate Comp
Estate Companies.
Real
estate crowdfunding has some different risks
compared to equity
crowdfunding.
In this Fundrise review, I'll go over real
estate crowdfunding, the Fundrise platform (including screen shots and earnings from my personal account), and
compare Fundrise to other similar platforms.
I'll start by
comparing the problems investors have with real
estate investing and
crowdfunding before showing you how starting a real
estate investment group for
crowdfunding has made this one of my best investments.
Joseph: One of the benefits to real
estate crowdfunding is the ability to get access to deals all across the country and in different property types for a fraction of the cost
compared to traditional property investing.
I'll
compare the best real
estate crowdfunding sites further down in the article but wanted to highlight one of the largest and easiest to use for investors.
In 2014, North America stood as the largest region by funding volume of
crowdfunded real
estate deals at 56 percent market share,
compared with Europe at 42 percent, according to Massolution's report.