Health & Fitness
Crowdfunding for Real Estate
The crowdfunding model has come to Winchester real estate. The recent legislation, which eases restrictions on investments, led to the launch of several real estate equity crowdfunding platforms.
With the passage of the JOBS Act, the crowdfunding model has
come to real estate. The recent legislation, which eases restrictions on
investments, led to the launch of several real estate equity crowdfunding
platforms, and investors are watching closely to see whether the model gains
traction.
How It
Works
Crowdfunding for real estate raises equity for investment by
way of three main players: the individual investor, the intermediary bringing
investment opportunities, and sellers (such as property owners, agents and
brokers). What powers this model is the matching engine (intermediary) putting
buyers and sellers together, but also making it possible for more individual
investors to scale the barrier to getting into the real estate market.
Find out what's happening in Winchesterwith free, real-time updates from Patch.
While each real estate crowdfunding platform is different,
the general investment model is the same. As these startups move forward,
investors will be eager to see what kind of yields the model gets, and who it
works for best. For now, the types of individuals involved with crowdfunding
for real estate are accredited investors (a net worth of more than $1 million
or income of more than $200,000). And at the outset, investment properties will
largely be offices, commercial buildings and high rises.
Whether recent launches will lead to a boom in crowdfunding
for real estate remains to be seen. In the meantime, the new approach to
investing in real estate will appeal to some who are qualified and ready to
test it out. Other investors will opt for an approach that works better for
them.
Find out what's happening in Winchesterwith free, real-time updates from Patch.
Options in Real
Estate Investing
It's always better to have more options and more investment
strategies, because the bottom line is: real estate gets yields in today's
market. Investors are expected to comprise 20-25% of existing home sales in
2013. Distressed properties and traditional residential resale both present
tremendous opportunities for individual investors. With a pipeline of
properties coming to the market either as foreclosure or short sales, you are
poised for prime buying power if you are considering becoming an investor.
The key to working a traditional real estate investment
model is to partner with a real estate agent, who like the intermediary in the
crowdfunding model is positioned to make connections between investors and
sellers. With a difference: your real estate agent works with you to use local
market data and the best investment strategy - such as buying and renting - to
take you from close to cash flow.
There's room in the market for every type of investor. The first step is deciding how you want to get into the water. Every Atlantic & Pacific Real Estate professional is educated on how to help investors make decisions in Winchester .
For more information contact me at bradford.amidon@apreus.com
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