Crowd Funding Investing do or dont

3 Replies

If you are just getting started in real estate investing and you don't have enough money to invest. Should you wait and save or should you invest in crowdfunding platforms like PeerStreet?

You have to be accredited to invest in PeerStreet's deals. If you are accredited based on income but don't have enough liquid assets to invest in real estate directly, you should probably focus on budgeting and building up that cash rather than where to park it.

Originally posted by @Logan Singleton :

If you are just getting started in real estate investing and you don't have enough money to invest. Should you wait and save or should you invest in crowdfunding platforms like PeerStreet?

 One of the advantages of Crowdfunding/syndication is that you can often get into the investment at a much lower minimum, then you could if you had to purchase the whole thing yourself. Not many people have a few million dollars to put into a decent sized multi family property but many more people might have $10,000 to do it. 

The main difference is that you would have to feel comfortable vetting a third-party to invest in, and not everyone feels comfortable doing that. And also, the returns will be lower because you would not be putting in any sweat equity. On the other hand, it would be completely passive, so a lot less work.  And you could hire a manager with years more experience than you could ever hope to attain.  It depends on what you’re looking for.

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