Benefits of Crowdfunding in Real Estate

Benefits of Crowdfunding in Real Estate

Real estate crowdfunding provides investors with a new way to leverage their real estate assets all around the world. One of the most prominent advantages of real estate crowdfunding is that it allows you to diversify your portfolio. By diversifying your portfolio, you are essentially spreading the risk associated with a single investment across a number of different investments. Depending on the site, real estate crowdfunding can take many forms. In our context, it refers to the ownership of a property on a fractional basis.

Most people believe that real estate investment is just for people who have amassed a certain amount of wealth or money. Consider the idea of wealth creation being decentralized through crowdfunding if wealth acquired through real estate investment is not limited to a few. For example, imagine getting the opportunity to invest in a million-dollar property with as little as $10. That’s the possibility FinEstate brings.

Here are some of the advantages of using crowdfunding to invest in real estate.

  • With a minimal amount of money investors can enter the real estate market. For example, you only need 5,000 Naira to invest with FinEstate.
  • You can choose the properties you want to invest in from the listed properties on the FinEstate platform.
  • You can diversify your investments geographically. Multiple areas of the real estate market can perform very differently from one another.
  • Traditional real estate investors will need to devote a significant amount of time to managing the property in order to ensure that it is completed on schedule and according to specifications. When you invest in crowdfunded real estate, you're investing with a third-party real estate expert who does all that work.

If you've never been able to invest in real estate before due to the large amount of money required for a traditional real estate investment, crowdfunding allows you to do so due to the lower investment size requirements.

Once you've decided to invest in real estate this way, one of the main advantages is that you can allocate a lower amount of capital for each of your crowdfunded investments.