We all dream of making money while we sleep, maybe even fantasize of owning an apartment complex or land across Kansas (no? too Wizard of Oz?). In any case, owning property in obscure places is no longer for the rich and well-to-do.
Crowdfunding, a global phenomenon disrupting the economic, financial and entrepreneurial space, offers a very reasonable and realistic opportunity to co-own lofty bits of property at lower risk. Think of it as buying stocks, only for real estate.
At the recent Crowdfunding Asia Summit, Elizabeth Braman, Chief Production Officer of U.S. real estate crowdfunding platform Realty Mogul, calls crowdfunding “transformative for real estate” and an opportunity for people to invest in real estate they wouldn’t normally have ability to.
The crowdfunding model offers a “diversity of risk” as property purchases are shared among collective investors. “Now investors can come onto crowdfunding platforms and invest in smaller amounts because technology gives the infrastructure to spread risk across geography and asset classes. Crowdfunding offers the next generation of real estate investment,” she says.
Working with “credited investors” (i.e. Members of the public who go through the process of becoming credited) to offer a portfolio of pre-vetted real estate investment opportunities, everything from apartment buildings to family occupancy housing. Realty Mogul offers the chance to buy-in for as little as $10,000.
To minimise risk Reality Mogul uses big data to identify the best investment opportunities rather than relying on antiquated anecdotal analysis. With compliance with regulations top on their list, Realty Mogul work to protect investors through rigorous checks and security measures.
The global reach of crowdfunding provides access to previously inaccessible markets, investments, and clients. Reality Mogul, provide full disclosure, offering regular updates and investment reports.
Crowdfunded property also means the investor enjoys limited liability and passive income – the trade off? Less control; and by less control we mean no control over when the property is sold. You rely fully on the real estate agent to call the shots and manage the investment. A relief for many and nightmare for others. But whatever your disposition, one thing is clear: crowdfunding has opened up endless opportunities to invest get involved with areas previously beyond reach. Democratising at its finest.