Hey it’s Alexis Asadi I want to look at real estate crowdfunding because it’s widely misunderstood I’m often asked whether I think it’s a good investment but this is a misguided question real estate crowdfunding is a way for a real estate company to raise money from investors instead of the traditional way of finding investors like hosting seminars and hiring.
Brokers the company simply lists its opportunity on a crowdfunding website real estate crowdfunding is ultimately a marketing platform it’s not an investment in and of itself it’s sort of like buying a product from amazon.
But you purchased the item from somebody else if you.
Invest in a crowdfunding deal you’re likely buying into a real estate investment trust a real estate fund or a business that’s used for the purpose of acquiring and developing a property these are old-school real estate investments the only difference is that you discovered it and invested over the Internet instead of from somebody’s office some crowdfunding platforms manufacture their own investment opportunities others allow third parties to list.
Their deals on the website in exchange for fees and commissions but regardless you should pay attention to the underlying investment rather than the.
Fact that it’s available online for example fundrise comm has an investment marketed as the East Coast ear eat but if.
You look at the legal paperwork for it it’s actually called fundrise East Coast opportunistic REIT LLC so it’s just a real estate investment trust that’s sold online it’s a normal property investment that was promoted over the Internet I don’t have an opinion on real estate crowdfunding just like I don’t have an opinion on sitting down with a financial advisor it all depends on the deal that I’m about to be presented with.
Does the real estate deal make sense are there commissions or management fees what is the legal structure is it liquid what are the risks and potential returns to discover more about the subject and anything to do with investing economics real.
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