When it comes to financing your investments, whether it be your real estate projects or your other business investments, your options are growing by the day. Business owners and project sponsors are no longer tied to the bank loan.
For investors looking to diversify their portfolios, the field of real estate presents a few unique strengths. Between its higher than average stability, high rate of appreciation, and reliable cash flow, the field has a lot to offer. It’s a great time to invest, too; the Joint Center for Housing Studies of Harvard University has projected that, between 2015 and 2025, 13.6 million more households will be established.
It’s tempting for investors to hear about 8%-12% returns that real estate crowdfunding has been delivering and rush in to get their piece of the action. However, it is important for investors to take the steps necessary to ensure their investment is solid.
Real estate crowdfunding (RECF) gives investors and deal sponsors the ability to connect with each other and earn high returns from that connection. As a deal sponsor, you might be wondering what types of investors actually use real estate crowdfunding websites.
Traditionally, real estate investing has been considered an alternative asset class. That changed, however, in 2016 when the Global Industry Classification System (GICS) was revised to give real estate its own asset classification.
One recent trend in real estate is to convert religious houses of worship into residential spaces. In New York City alone, there are no less than 16 such conversions. But it’s not just happening in New York. All around the world, churches, temples, and synagogues are being converted into houses, condos, co-ops, and apartment buildings.
Merely generating revenue is insufficient to build the value of your property and improve the cash flow of your portfolio. It takes a variety of strategies and constant refinement to maximize the returns from each of your rental properties. When you apply these ideas across an entire portfolio, it will transform an under-performing set of assets into star performers.
Short sale real estate investing is when a developer purchases a property for less than the mortgage amount owed. These types of deals became more popular after home prices collapsed several years ago. As values took a serious dive, many homeowners owed a lot more than their property was worth.
n the hospitality industry, crowdfunding projects are quickly gaining a lot of momentum. Many of the biggest real estate crowdfunding websites and networks frequently have private placements and hotels mixed in with a variety of other offerings for real estate around the country – making them a perfect place for those looking for hospitality properties.
Professions such as a doctor, lawyer, entreprenur etc. is very time consuming. In a life mainly consisting of work, it is hard to find time to gear ones energy towards another interest such as investing in real estate. This is where Real Estate Crowdfunding (RECF) and marketplace lending comes in.