Crowdfunding - Investing Made Convenient

Good morning everyone.

Last night, I took my wife and baby boy to Dairy Queen for an evening snack. As I pulled up to the store, I noticed that there were only two cars in the parking lot and a long line of ten or more cars in the drive through. Pulling into the end of the line, I casually mentioned to my wife that it would probably be quicker to simply walk into the store and grab our favorite blizzards to go. 

Since I pulled into the drive through line, I had some time to reflect on what I had just done. I looked over at my wife and asked "Why do people sit in a long drive through line rather than go into the store?"

Of course, her answer was that she was in her flannel pajama pants and that was reason enough not to go out in public!

So why do people wait longer times rather than go the fast route? After discussing it some more, we believe that the answer (other than flannels) can be summed up with one word: convenience. This lead into how we could use this to our advantage as we embark on our real estate journey.

And now for the tie-in to real estate...

I would venture a guess that everyone would like some financial stability in their future. 401k's, Roth IRA's, real estate, gold, bundles of cash in your mattress - you name it, and I'm sure that people are doing it right now. Some of these methods suffer due to inflation, others suffer due to fluctuations in the market. Many of them require time and commitment from the investor to follow up and manage in order to maintain efficiency.

What if I told you that there is a method of investing that is simple and convenient?

Crowdfunding is Investing Made Convenient

Crowdfunding: The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

A quick Google search gives a good definition of what crowdfunding is - but how does this relate to you?

You, as an investor, do not need a large amount of money to get started: someone else proposes a project or venture, and they handle it for you. You can find a few examples of real estate opportunities on our Investments page.

Forbes sums up what they believe makes a good real estate investment in this article. Cash-on-cash returns, risk mitigation, and minimizing management time are the three things that they prioritize as "making a great real estate investment."

So why invest in real estate?

There are entire online communities such as BiggerPockets that can answer this question in more depth than what I will go into now. A few key points:

  • Commercial Real Estate is based on income rather than appreciation, so there is less risk of a "market crash" affecting your investment.
  • Since it is not based on appreciation, commercial properties have remained much more stable than alternative investing opportunities.
  • Real estate is tangible - if a company's stock goes down, you lose monopoly money and have to wait for it to appreciate in order to get your money back. Real estate has physical collateral attached to it - the property can be sold in order to repay investors.
  • Real estate can provide you with more income streams.

Bottom Line

Generally, people want to provide financial support in their future. It is also fair to say that people prefer convenience. Crowdfunding is a convenience method for you to start investing in real estate without needing to save up large amounts of money or manage your own properties. While all investing involves risk of one form or another, Real Estate (and crowdfunding) both minimize risk when handled properly.

Do you want to know how you can start investing today? Click the button below!

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