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Advantages of investing in real estate crowdfunding

Table of Content

Investing in real estate crowdfunding

Invest in real estate acrross the world in different curriencies

Diversify geographical locations when investing in real estate

Administer your real estate investments online 24/7

Information asymmetry in real estate investing

Invest in real estate on the move

Invest in real estate in a matter of minutes

Factionalize your real estate investments

Final words about real estate investing

Investing in real estate crowdfunding

When it comes to making a long-term financial commitment, real estate is one of the best investments available. In contrast to volatile financial instruments like bonds and stocks, the real estate market has a more consistent and predictable return over the the long run. Let’s have a look at the advantages of investing in real estate crowdfunding.

While both sides have valid points, we'll focus on the strongest reasons for real estate crowdfunding is a great method of investing in real estate compared to the more conventional methods.

Invest in real estate across the world and in different currencies

A variety of properties all around the world can be purchased through real estate crowdfunding platforms. Such platforms provide investors with multitude of options and new investment prospects for earning interest from real estate investing.

As a result, you can diversify your investments throughout the world's major jurisdictions and currencies, while lessening your exposure to currency fluctuations. Due ot this, as well as decreased costs digital investment platforms, investors earn more consistent long-term returns.

Diversify geographical locations when investing in real estate

In the past, real estate was mostly a local industry. To know what you were purchasing or investing in, you had to be familiar with the target location and usually have physical access to it.

This isn't the case anymore. In today's world of online real estate investment platforms, such as Estate Guru or Raizers, you can find and invest in properties all over the world, and get all the necessary information about the local market & regulations as you do so. Global real estate investing is only going to gain more traction over time.

There are two significant trends in real estate that EY Global Market Outlook 2016 has identified: 

  • Innovation

  • Transcontinental reach. 

This is due to the increased financing available from emerging markets.

Administer your real estate investments online 24/7

On the administration and management front, the technology supplied by internet platforms removes any administrative burden from the property investor.

Investors simply need to think about their investmetns in terms of profitability, while the real estate crowdfunding platform takes care of property maintenance, transaction and administration. Investing in real estate is now hassle-free, and years of experience and knowledge are no longer necessary.

Investing in real estate is also an infamously "admin-heavy" business, which requires a great number of paperwork, and dealing with middlemen, lawyers and other day to day tasks. It's also worth noting, it takes a great deal if planning, often with a help of a third party, after a significant investment.

Investors can sit back, relax, and maintain tabs on their investments because real estate crowdfunding is now fully online. The crowdfundign platform itself takes care of property upkeep, so investors don't have to worry about day to day tasks.

Information asymmetry in real estate investing

Before Crowdfunding, real estate investing was similarly characterised by insider knowledge, but the internet's progress is about democratising information, and the online real estate business is no exception. In certain circumstances, the estate crowdfunding site itself provides information that's been previously concealed from the audience by experienced property investors.

In most platforms, for example, the major goal is to offer all crowd funders all the information they need to make an informed decision about the investment. Investors are more informed than ever before because of the wealth of information available online, from industry trends to developer backgrounds.

Investors are no longer kept in the dark about what they're investing their money into thanks to real estate crowdfunding sites that perform all the legwork for you and publish any pertinent information online.

The overarching purpose here is to provide investors with the opportunity to properly analyse the profit potential for themselves so that they can make a good decision.

Invest in real estate in matter of minutes

Investing in real estate used to take months because of all the necessary paperwork and organisation required. Since all real estate crowdfunding operations are conducted online, this time it takes to invest in real estate has significantly decreased.

The real estate industry has been plagued by bureaucracy and paperwork in the past. Platforms provide all-inclusive services, so even the transactional element of a property acquisition can be completed online with minimal input from banking firms. Rather than a lengthy process lasting several months, property investment is becoming a one-day endeavour. 

Invest in real estate on the move

For real estate, the digital phone has had a huge impact, just like in many other businesses. Property brokerages are building their specialised applications to compete with new start-ups, and many already have mobile websites.

It has been pointed out by Forbes magazine that services such as Reinvest24 are completely changing how individuals invest property, allowing for simple access to market information and investment possibilities right from the mobile device of the consumer.

To put it another way, instead of needing to go out to the real estate broker or fund director to purchase or invest in property, you'll be allowed to do it from the comfort of your own home or office.


Real estate crowdfunding lending 

Equity real estate crowdfunding investment 

Short term


Secured Debt

Higher risks

Single phase project

Multi phases

Easier to evaluate returns and outcome

More complicated evaluation

Fixed interest payments

Payment depend on deal structure

Interest payments taxed as an income

Potentially tax benefits such as depreciation

Limited upside

Higher potential payout 


Fractionalize your real estate investments

Investing in a home before crowdfunding required substantial sums of money to pay the initial costs. Given the fact that you were the only one who invested, you are responsible for all of the costs.

Reit (Real Estate Investment Trust) is the only other viable alternative. However, REIT was not ideal because of the investor's lack of control over which properties were picked for investment and his or her understanding of property management. For example, investors can now put down as little as EUR 50 when investing with Bulkestate.

Non-accredited and non-professional investors have been able to participate in the real estate crowdfunding sector, which is currently valued at 2.6 billion Euros worldwide. In the past, investors had to fork out large sums of money to invest in homes on other continents or cities. Crowdfunding for real estate is democratising investing in real estate and you can take part in it today!.

Final words about real estate investing

Are you afraid to go it alone when it comes to real estate investing? You're not the only one, unfortunately. As it turns out, real estate investing isn't quite as straightforward as it appears. Even if you believe you know more about investing in real estate than you do about other types of investments, you can still fall victim to mistakes, especially if you work with the weak real estste crowdfunding platforms. For that reason Sneakypeer developed proprietary real estate crowdfunding and other peer to peer investing scoring system.