Great Investment Option
You just exited a business or sold one. Or maybe you command a large salary building the future at a startup. How do you deploy (or redeploy) your capital?
Some likely goes to your next venture. Maybe you invest in other businesses, too. Or, perhaps it’s time to start a nest egg and plan for the future.
But there’s one opportunity you likely haven't considered: real estate.
We're not talking about house flipping. We're talking about owning a portfolio of nationwide commercial and residential real estate. Until recently, this opportunity hasn't been the most accessible. But it is now, thanks to the power of crowdfunding.
Real estate investment used to demand massive investments of time and capital. You needed millions, plus a full time team to vet and invest in deals. Not to mention, you needed the preferred connections to access those deals in the first place.
Many entrepreneurs haven't had those luxuries. They have been—or currently are—laser focused on building businesses. And their capital funds those efforts. That leaves little time or money left over to build wealth through alternative investments.
Crowdfunded real estate gives entrepreneurs a simple way to invest in deals. These real estate investments build wealth while you plot your next round of world domination. And entrepreneurs can start investing with only a small pool of capital.
Entrepreneurs need to consider investing in real estate through a crowdfunding platform. Here's why.
1. You Only Need as Little as $5,000
Real estate crowdfunders pool their money to make a big investment in a single property. That means they can access better deals that need large capital injections. And they don't have to invest their life savings into a single property and pray it stays solvent.
This wasn't always the case in real estate. Six figures was the norm to buy into hot commercial real estate deals. Unless you had tens of millions, you weren't creating a diversified real estate portfolio. That lack of protection dissuaded many who didn't have the capital to diversify.
Because of crowdfunding, entrepreneurs can get started with just $5,000. That means anyone can build a diversified portfolio backed by hard assets. And, as we'll see, even a small real estate investment can build serious wealth.
2. Build Wealth While You Build Your Next Company
Crowdfunded real estate is a potentially wealth-building asset that offers unique advantages.
Properties with tenants generate cash flow that can cushion against market crashes. And real estate emphasizes real returns, with rents often pegged to rise with inflation.
You'll need to do extensive due diligence before you invest. But after you do, wealth can build without your involvement. Operators use your capital for construction and/or management, generating cash flow and price appreciation. You track performance with online dashboards and analytics while you pursue your next venture.
3. Built-In Consultation and Trust
In traditional deals, entrepreneurs who want to invest must be hands-on. They need to find deals, underwrite them and manage the deal for years. These aren't easy tasks. Crowdfunding platforms make them much easier.
The best crowdfunding platforms do countless hours of research into available deals. They present only the best ones. And that's before you even log online to see what's available.
Platforms can also give you direct access to operators and expert consultation. Both can make due diligence easier and more robust. The best platforms then underwrite deals so you don't have to.
They say when one door closes another opens. You may have just closed the door on your past venture. The good news is that countless others just opened—and you can own the properties they belong to.