Real estate crowdfunding: investing in real estate without much money
Discover what real estate crowdfunding is and what are the main platforms to invest in real estate from little money. Well, participate in some of the platforms that I will talk about in this article.
Crowdfunding, in general , is the collective financing of projects or companies. A plurality of investors contribute their capital, their money, to a greater or lesser extent, to a project that may be business or not.
Real estate crowdfunding is one that aims at real estate investments, that is, investing in real estate. In its first moments, the object was the purchase of homes (among several) to rent or sell. Nowadays it extends to more types of real estate (commercial premises, parking spaces …) and can also be aimed at the financing of developers to build new construction, tourist apartments, etc.
But… is not investing in real estate risky?
Everything in life can carry a risk. Walking on the street, driving, reaching the jar of jam that is high … Everything has a risk and investments are no exception, real estate is not, but that is why you will not stop living or earning money.
The only real estate risk, in fact, like any investment, is that they lose value. That can be a problem if you have bought expensive and need to sell for economic emergencies. To avoid it it is always good to invest (in general) the money that you will not need. In any case, if the properties have lost value or are very economical, more than a problem can also be a good opportunity to buy … it all depends on the eye with which you look.
You also may not like to manage everything that involves investing in real estate (payments, deeds, taxes …). Precisely investing through real estate crowdfunding platforms is how you are going to avoid all that paperwork.
Do I personally invest in real estate crowdfunding?
No, because I am not the profile. I explain. I invest in real estate, for a long time, alone. I started doing it alone, with income from other assets of mine (here you can see what an asset is and its types) and I still do it alone.
If I didn’t have enough income to do it that way of course I would use some crowdfunding platform. In addition, the papers do not scare me because I have worked with them all my life (I have a law degree). And besides, the issue of real estate, modestly, I think I have mastered it quite well because I have been in it for a while and my ancestors were also dedicated to them, that is, the thing comes from afar …
Crowdestate is a real estate crowdfunding platform originating in Estonia in 2015. Like Housers, it has 3 different types of projects called rental, development and speculative.
It has the option of self-investment, in the event that you do not want to be aware. Once configured, the platform will invest for you in new projects, provided they meet the parameters you have indicated.
Advantages of investing in Crowdestate:
- Higher profitability than in other platforms: around 16% on average.
- Self-investment option.
- You can invest from Latin America (except Venezuela).
Disadvantages of investing in Crowdestate:
- The web is not in Spanish.
- Minimum investment in each project of 100 euros, higher than in other platforms (although not to die, let’s go … ?).