If you’re even vaguely interested in real estate and real estate investing, you’ve likely heard of real estate crowdfunding. You might even be considering it as a money-making option yourself. But has the time for real estate crowdfunding come and gone? We’re here to tell you why real estate crowdfunding may not be the best passive income idea today, why you should focus your attention on other real estate investment opportunities, and what you should be doing with your money instead.
What Is Real Estate Crowdfunding?
Crowdfunding has certainly had its day in the sun: people have used crowdfunding to fund any number of projects and passions, real estate included. Crowdfunding involves a number of people contributing small amounts of money to pay for projects or other business ventures. Crowdfunding has grown enormously popular in recent years, and the popularity of real estate crowdfunding promises to continue growing. Real estate crowdfunding applies the basic concept of crowdfunding to real estate purchasing: a collection of people, usually brought together by the internet, all contribute to the purchase of real estate holdings. Real estate crowdfunding can seem like an easy way to add real estate to your investment portfolio without a hefty initial payment, but it’s not always all it’s cracked up to be.
Why Should You Pass On Real Estate Crowdfunding?
There are a number of reasons you might decide to pass on investing your money in real estate crowdfunding. Jason Hartman (at www.jasonhartman.com) will be able to guide you and your real estate investment portfolio in the right direction, but here are some ideas to keep in mind as you move forward.
If you’re looking to be actively involved in your real estate holdings, real estate crowdfunding is probably not the choice for you. When you invest in crowdfunding, whether it’s real estate or another business venture, you’re handing over your money and the reins to another party. You won’t have much say in the day-to-day movement of your money, so if you want to be in control of what’s going on, go a different route.
Loss of Money
While crowdfunding can make you some relatively easy money, it might be impossible to get your money back if there is an emergency. The funds in a crowdfunding operation are not liquid, so you won’t be able to cash out on a moment’s notice. Real estate crowdfunding also might come with hidden fees. You might be expected to pay platform fees, construction fees, and more; these may end up adding up to more than you were willing to spend or even more than you eventually make from your investment.
Real estate crowdfunding is relatively new, so the number of government regulations is prone to change. The number of potential scam artists in the real estate crowdfunding game is also higher than that of other, more established real estate investment options.
What Real Estate Investments Should You Look at Instead?
The real estate investment options you choose completely depend on what you’re looking for: investing in REITs (real estate investment trusts) is another option for the hands-off real estate investor, while purchasing turnkey properties is a good choice for people looking for a classic rent check setup (without the work of being a landlord). Wherever you are in the real estate investment game, do your research and consider getting some help and advice from Jason Hartman to make sure you’re making a safe and profitable investment. Whether you are just starting to look into real estate crowdfunding as an investment option or are already in the game, consider talking to a professional at Jason Hartman to make sure you’re getting the biggest bang for your buck. Essential real estate crowdfunding advice is only a click away at www.jasonhartman.com, so take control of your real estate investment future today.