Real Estate Investing + Crowdfunding= Real Estate Crowdfunding
By Tommy Leung, CEO & Founder
In any civilized countries, real estate investment is the mother of all investments that precedes stock, bond and precious metals. Real estate opportunities are everywhere including where you live or around the world. No matter where and when, the golden rule for real estate investing is location, income, appreciation and leverage (see About Real Estate Investing in Knowledge Center).
With the enactment of Title III Regulation Crowdfunding as of May 19, 2016, using crowdfunding platform like MinnowCfunding , individual investors will be able buy into a real estate opportunity for a relatively small amount of money but with the potential for high returns. These are the advantages of real estate investing through MinnowCfunding:
Low Barrier of entry
An investor with as little as $1,000 can own part of a real estate venture which hold the property subject to a maximum limit of 10% of income or net worth. This will minimize the investor exposure to real estate which is relatively illiquid compared to other types of securities investments.
Ease of Use
The investment information review and investing process is entirely conducted on platform's website 24/7. Investor can track the investment performance online and access open communication with the operating partners for an update of the investment.
Open Access to Quality Deal Flow
Historically, only investors with deep pockets and connections could access quality deal flow and invest. Thanks to crowdfunding platform like MinnowCfunding, investors can access deals they normally would never see come across their desks. In addition the platform company would curate deals for investors and offer as much detail as possible about operating partners and properties. But investors are still encouraged to conduct their own due diligence to make sure the investment is right for them.
Freedom of Selection based on Risk Profile
Not all investment risks are created equal. Some are high risk, high return. Others are low risk, low return. With a broad listing of different investment opportunities with different risk profile, investor can choose between lower risk, lower reward offering or higher-risk, higher reward offering in which investments based on his/her risk/return appetitte.
Real estate is an attractive alternative investment for a number of reasons. Many financial advisors consider real estate as a viable investment product to diversify across cash, money market accounts, stocks and bonds. MinnowCfunding helps both novice and veteran investors diversify portfolios across a range of investment products.
Transparency and Regulation
All Title III crowdfunding companies like MinnowCfunding have to register with SEC and FINRA membership. The platform company has to abide to certain rules and conduct per Regulation Crowdfunding including reporting requirement and online access for investing knowledge materials.
Real Estate Crowdfunding is a new movement that is going to rattle the traditional investing and capital raising market dominated by Wall Street firms. This is the time for you to join MinnowCfunding and be a member of this new movement.