Real
estate crowdfunding requires more due diligence than investing on a consumer loan (where every investment comes with a risk rating).
Not exact matches
For example, a real
estate crowdfunding platform will
require a different solution than a platform servicing startups or small businesses.
Profits aren't guaranteed with
crowdfunded real
estate, but since you're a stakeholder instead of a shareholder, your profit potential is higher because of the extra financial commitment
required.
You can get into
crowdfunding real
estate, but it also
requires you to be an accredited investor, which most young adults are not as well.
The
crowdfunded real
estate investment firm only takes on projects that are already 50 % capitalized, or put another way, the developer and builder have already raised at least 50 % of the funds
required to build or remodel the proposed project.
Making money in real
estate crowdfunding, like any type of investment,
requires doing a lot of research.
Unlike several other real
estate crowdfunding platforms that
require a minimum investment of $ 5,000, Groundfloor asks for a minimum investment of only $ 10.
However, the New Law
requires an individual taxpayer to aggregate all of their income or losses earned through all of their pass - through investments (such as real
estate crowdfunding partnerships).