recommendations from other people who have done crowdfunding with the company. Popular crowdfunding sites include Fundrise, Realty Mogul, and Ground Floor.
How Does Real Estate Crowdfunding Works?
Let’s say you have a property with a purchase price of $100k. If you’re an investor, you have to raise or acquire that amount in order to add the property to your portfolio. The investor could go to a bank and proceed with the process of completing tons of paperwork, getting appraisals, and putting down a 20% down payment.
If an investor is not eligible for bank financing or wants to avoid going through a bank, they can leverage real estate crowdfunding sites and acquire small amounts of money from a mixture of non-accredited and accredited investors. Everyone can contribute different amounts and earn a piece of the pie.
Questions To Consider
Before investing your money on a real estate crowdfunding site, do your research. Due diligence is required to ensure the investment is viable and makes sense for your portfolio.
Here are some questions that can