There is one important reason as to why you would add crowdfunding in real estate to your portfolio. It’s because of diversification that stocks just can offer you so much.
There are three major reasons why you should invest in crowdfunding for real estate:
- Access – There are now several websites that allow you to access funds: Fundrise, Realty Mogul and Rich Uncles. Such websites are also available to non-accredited investors. Before investing in real estate crowdfunding websites make sure you complete your due diligence. You can even have your bank account auto debit from these websites.
- Diversification – As mentioned before crowdfunding real estate gives you diversification which stocks can not do. In addition to asset class diversification, you can also invest in different portfolios of crowdfunding real estate. There are certain funds, for example, that are based on debt and on equity. It ‘s important you give yourself the opportunity to diversify and crowdfunding for immovable property is good for that.
- Little maintenance – If you own a physical house, you’ll need to keep track of tenants, clean the house and maintain it. With crowdfunding in real estate, you don’t have to screen tenants and renew the property every few years. You don’t have to hear any stories about leaky faucets, either. The other key advantage is that you can set up the assets so that they are deposited (monthly or quarterly) from your bank account and you can choose whether your dividends are reinvested in the fund or your bank account.
While there are numerous other benefits of investing in crowdfunding real estate, the above are the three main reasons why we believe that any portfolio is a good addition to that.