AskBP

Real Estate Crowdfunding: Should I Invest?

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Real Estate Investing Basics, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP
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crowdfunding-benefits

One of the hottest trends today in the real estate industry is real estate crowdfunding. But just because it’s hot, does that mean it’s a good investment? As with any investment, crowdfunding offers the potential for solid returns—but it also involves risk and requires due diligence and informed decision-making. In this video, Brandon Turner mentions crowdfunding in comparison to stock investing. It is important to note that while both of these strategies are popular forms of investing, they differ in several ways. Crowdfunding (and real estate investing in general) is affected by general housing market fluctuations, while the stock market is influenced by several factors of the economy at large, as well as management of and value created by specific companies.

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Check out the below episode of the #AskBP Podcast, where Brandon shares his thoughts on the truth behind crowdfunding and how to get started with that niche. Stay tuned!

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Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He began buying rental properties and flipping houses at age 21, discovering he didn’t need to work 40 years at a corporate job to have “the good life.” Today, with nearly 100 rental units and dozens of rehabs under his belt, he continues to invest in real estate while also showing others the power, and impact, of financial freedom. His writings have been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media. He is the author of The Book on Investing in Real Estate with No (and Low) Money Down, The Book on Rental Property Investing, and co-author of The Book on Managing Rental Properties, which he wrote alongside his wife, Heather, and How to Invest in Real Estate, which he wrote alongside Joshua Dorkin. A life-long adventurer, Brandon (along with Heather and daughter Rosie) splits his time between his home in Washington State and various destinations around the globe.

    Aaron M. Homeowner from Hobart, Indiana
    Replied over 4 years ago
    What I like most of crowd funding is that it gives a person who may not have the money to purchase the deal in full, to buy into a piece of the pie for what they are able to invest. Like you mentioned, I think crowd funding and peer to peer lending is going to become big in the future. Yes, there are risks in it just like any other investment, but again lets someone with less money to jump in the game and start building their investing portfolio other than more risky stocks/mutual funds (in my opinion).
    Brandon Turner Investor from Maui, HI
    Replied over 4 years ago
    Thanks for the comment Aaron! And yeah – that’s a great benefit. People can begin to experiment without sinking tons of money!
    Colleen Pelliccia lavin Rental Property Investor from Pasadena, CA
    Replied over 4 years ago
    This topic is so interesting! After this podcast i searched on youtube and found a panel on real estate crowd funding from a lending conference. It features the founder of RealtyShares and others. https://m.youtube.com/watch?v=yGfkg8uAlvg
    Account Closed Real Estate agent from New York, New York
    Replied almost 4 years ago
    Investment in real estate sector is one of the best trends today. If the project in which you are investing is going in profit you will receive its dividend at regular interval.