Real Estate Crowdfunding: Should I Invest?

by | BiggerPockets.com

This is an advertisement. We have partnered and are compensated by RealtyShares. RealtyShares is a funding platform who has partnered with North Capital Private Securities (NCPS), member FINRA/SIPC. Private securities on the RealtyShares platform are offered through NCPS. Private investments are highly illiquid and are not suitable for all investors. Neither RealtyShares nor NCPS makes any recommendations or provides advice about investments.

One of the hottest trends today in the real estate industry is real estate crowdfunding via several websites, including well-known platforms such as RealtyShares (to learn more about RealtyShares, click here). 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.

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!

Watch the Episode Below

Listen to the Episode Below

Links from the Show

We’re republishing this article to help out our newer readers.

Any questions regarding crowdfunding or various crowdfunding platforms?

Comment below!

About Author

Brandon Turner

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.

4 Comments

  1. Aaron M.

    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).

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