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December 11, 2015 @ 3:43 PM

Why Crowdfunding Is a Potential Boon for Real Estate Investors

Written By: Mark Spera


Crowdfunding platforms typically offer a range of investment opportunities. At RealtyShares, investors have the ability to choose between debt and equity investments involving both residential and commercial property types. That’s an important benefit for investors who want to diversify their portfolio by adding in real estate holdings but may be concerned about spreading out risk.


Because real estate crowdfunding platforms require much lower minimum investments than traditional private real estate deals, it’s possible for investors to pick and choose where they want to put their money. Instead of sinking $50,000 into a single property, investors can break the money up into 5 or 10 different investments. If one underperforms, it’s less likely to drag down their entire portfolio.

Founder and CEO, Athwal says that investments on the platform have paid back over $15 million in capital so far. Q3'15 saw $30 million of investment activity on the platform. We're not allowed to share specific returns because of SEC regulations, but there are some homes and commercial properties. You can investigate further by signing up here

(read to the bottom... there's a way to make $25 courtesy of my sponsor!)

RealtyShares offers investors 15 million reasons to consider real estate crowdfunding.

Investing in real estate is no longer an exclusive club


Like rewards-based or loan crowdfunding, real estate crowdfunding operates based on the premise of pooled funds. Multiple investors can hold equity stakes in a particular property or invest in the property’s mortgage note, with each of them sharing in the investment returns. This reflects the types of investment options available through platforms like RealtyShares.


Though still in its infancy, real estate crowdfunding has had a significant impact on real estate as a whole. From an investor perspective, this alternative path offers a number of potential advantages over the traditional real estate investing model.


Investing in real estate can be a rewarding venture but traditionally, access to private deals has been limited to a select few. Specifically, investing in high-level properties meant having the right connections and a large-enough bankroll to get in on the ground floor. Fortunately, the crowdfunding industry has eliminated some of the barriers that once prevented certain investors from gaining entry to the real estate market.


Instead of needing $50,000 or $100,000 to participate in a private real estate investment, it’s now possible to start at a lower price point. With RealtyShares, for example, accredited investors can gain access to deals with as little as $5,000. The fact that it costs nothing to sign up for an account and browse available deals only adds to the appeal.

Funded deal on RealtyShares.com, 2015

RealtyShares founder and CEO, Nav Athwal

Nothing can replace great diversification, but crowdfunding platforms like RealtyShares can help take care of the real estate portion of your portfolio. Registration is free. It's worth a look. Plus, if you register today, link a bank account and use my code "markspera" they will transfer you $25 just for signing up.

Real estate crowdfunding offers investors potentially more variety. 

Looking to explore real estate investments across the country? Sign up for free (and get $25) here

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