Wednesday, July 23, 2014

The game-changing ways of real estate crowdfunding

A roomful of opportunities awaits middle-income individuals who decide to join crowdfunding ventures. With new measures in place to provide a democratized access to investments that were once gated and reserved for the 1 percent, living the good life has never been this closer at hand.

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Crowdfunding has caused a revolutionary stir in the way industries like real estate do business. The following is a short rundown of its game-changing ways:

More transparency, less headaches: Crowdfunding cuts all paperwork previously necessary in realty dealings, yet it offers a more open transaction. Unlike Real Estate Investment Trusts or REITs, where stakeholders have to invest in a pool of properties, crowdfunding ventures are packaged and tackled individually, giving investors more control over and access to a project. Online databases tracking the performance of crowdfunded transactions also lend more transparency.

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More power to the average Joe investor: Policy changes, highlighted by the score bigger opportunities.

Less risk, more convenience: Instead of seeking out banks and capital institutions or digging solely into their pockets to fund realty developments, investors in crowdfunding can tap into a community of small funders, pool their resources, and execute the project as soon as they reach the funding goal. And since accurate information is readily available online to shine light on all sides, potential backers and funders make smarter investment decisions than they would under the traditional real estate transactions.

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Steve Bettinger, co-founder of Acquire Real Estate, believes in the power of crowdfunding to democratize access to high-quality real estate investments. Know more about the ins and outs of crowdfunding by subscribing to this blog.

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