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One way to spend your money wisely is by making investments. Meaningful projects like buying a real estate property is a worthwhile experience, especially when you do it through crowdfunding. Crowdfunding real estate works as a viable avenue for non accredited investors to make money out of the properties they have bought altogether. Non-accredited investor is the umbrella term for individuals who spend as little as $1 to invest in a crowdfunding project. These people share a common goal depending on the type of project they participate in, either to support a meaningful initiative or buy a property. The real estate industry is now full of crowd funders since the enactment of Jumpstart Our Business Startups Act (JOBS Act) in the United States. This law is intended to loosen up the tight regulations of the Securities and Exchange Commission when it comes to the activities of investors in general. Today, JOBS Act supports the growth of numerous startup businesses whether they do it by engaging in alternative capital acquisition processes or through traditional banking. Since dealing with banks is too burdensome for small and medium scale entrepreneurs, crowdfunding became the best alternative financial option to raise capital. So through crowdfunding real estate platforms, you can now co-own your selected real estate property along with other investors. One of the advantages is that you can decide how much you need to invest for the property unlike when you buy an entire one. Plus, you can add it as an asset in your portfolio that will promote diversity among your other assets. Crowdfunding real estate is a door to many investment opportunities that you can afford to have. You are also free to gain control over your investment selection and its geographic location in the country. In this way, you can easily co-own multiple properties without the need to be the responsible person for the management. The timing of distribution in crowdfunding real estate may vary depending on the type of property, but often time investors receive their share monthly. This is unlikely to happen when you select Real Estate Investment Trust (REIT), wherein the distribution is done either after 18 or 24 months. Choosing between REIT and Crowdfunding real estate depends on your investment objective. REIT is where you can own shares in a company that generates its profits from owning other real estate investments. However, REIT does not give investors full control to their investments as compared with crowdfunding. REIT is therefore not recommended to individuals whose primary investment objective is to involve themselves in several benefits that the industry has to provide. REIT does not allow them to achieve many goals than they would have achieved in crowdfunding real estate. Another advantage of crowdfunding beneficial to your objectives is that it gives you access to other transactions and shareholder events that were limited to non-accredited investors before. For example, for worth $1,000 of investment, you can get discounts on food purchases of the restaurant you co-own or financially supported through crowdfunding.
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