What is crowdfanding?
If you’re tired of low returns on Deposit Certificates, savings plans and other capital investments, look for mass funding for double-digit returns. Crowdfanding is gaining popularity as an investment strategy for many investors. It is a unique process to raise capital through family and friends, potential clients and individual investors looking for different investment venues. It is a focused approach using advertising, social media and real estate investor forums and related networks to promote crowdfunding.
Which platform is right for me?
My preference is to accumulate real estate investments, which I will discuss here. There are many different strategies and models of crowdfanding platforms, so you want to make sure that the platform you choose is right for you. Ask the question: Am I comfortable with the amount I will invest? Do we share the same values? Do you agree with investment strategies such as converting homes or saving for long-term passive income? The amount required for the investment will vary from place to place, so shop until you find one that fits your investment portfolio.
Do your homework
Do your homework before you invest. Historical performance is a good indicator of future performance. Meet the board and see what they do on social media. How transparent and willing they are to talk to you and answer your questions, including the difficult ones. Those who are more willing to share their beliefs, controls, and goals do better for themselves and their customers in the long run. Contact other investors for advice and approval.
Do the math
I’ve seen a lot of attractive revenue advertised to find prices go up just to make sure you call. Do your homework to see if the numbers are real. Ask how much information is provided in the business? How can I get into my investment and income after making a commitment? How and when are investment returns distributed? What type of report (personal and legal) is presented to the investor? Before taking the first step, make sure you are comfortable with the management team and the security of your investment.
I personally invest in Holdfolio. Their shopping platform consists of 10 rental houses within a single portfolio. These homes are purchased, rebuilt for rent, and then rented out. With a minimum investment of $ 10,000, investors (the public) are given 60% ownership. 40% ownership is carried out by the Holdfolio management team. When I invested a year ago, the advertised income was 10% to 14%, and now I earn 11% per annum. With each new portfolio, 10 additional homes are offered to investors with an average mass fund of $ 320,000, usually replenished in 4 to 5 days. Holdfolio has just finished Portfolio 10 and will soon start Portfolio 11. This is just one example of many mass fund platforms.
Today, mass real estate funds are rapidly gaining popularity as investors move away from stocks to earn more in other markets. Make sure you do your homework and narrow down your search to the first three. If this is your first time, start with a smaller amount of options until your comfort factor allows you to do more.