Crowdfunding is a fairly new way of raising funds for major projects. It takes the efforts and contributions of a large group of people, providing small amounts of money. Real estate crowdfunding is one of the most recent trends that allows you to buy land. The practice has been around for that long but it’s catching on. Some companies specialize in facilitating that practice. Here are five crowdfunding companies that are good for helping you to buy land.
Acretrader is a real estate crowdfunding company that allows its members to help diversify their investment portfolios in the real estate sector while helping to support a farmer in the process. Acretrader has chosen an investment in farmland because it is one of the most necessary resources that is going to become even more valuable as the population of the world continues to grow, and the demand for food increases. Acetrader’s core team realizes that land is one of the most traditional classes of investments known to man. It’s consistently produced large wealth over multiple generations. Farmland represents an even more attractive investment opportunity because of the demand for the crops and resulting food sources it can produce. The demand for food is growing, hence the value of farmland stands to only increase over time with the demand for greater food production. The potential for long-term returns is high. Acetrader also offers a platform for helping investors invest in farmland assets in mere minutes. It’s convenient and offers an exceptional vehicle for investment portfolio diversification.
CrowdStreet is a leader in CRE investing. It offers an online platform for easy comparison and reviews of deals including tools to help investors find the right projects to add to their investment portfolios. The firm offers crowdfunding real estate investments for a variety of commercial properties with businesses already established. Some of the kinds of opportunities include multi-family dwellings, single-family dwellings, and more. The Fundrise platform is used by thousands of investors. These investors place their bets on commercial real estate investment with more than 488 projects already launched. They offer funds and individual deals across most risk profiles and asset classes. Potential investors may review the marketplace in search of deals. The CrowdStreet Marketplace has been in operation since 2014. It provides investors with options that they didn’t have before. The platform offers direct investments as well as investments in funds or investments in individual commercial real estate deals, putting the investor in control with tailored portfolios that leverage the power of the CrowdStreet crowdsourcing platform.
3. Realty Mogul
Realty Mogul is a crowdfunding-based company with the philosophy that real estate is a foundational investment asset that has historically provided wealth for investors. The company seeks to help investors diversify their portfolios through investments in Real Estate Trusts and individual properties. Historically, these activities remained reserved for the wealthy and those with the right connections. Realty Mogul entered the scene with the notion of changing that previous reality and putting investment options in the hands of a bigger segment of the population through its crowdfunding strategy. They make commercial real estate investment possible for more investors. The gents provide personalized service for each investor through the platform that simplifies the process of investing in well-leased properties and construction opportunities beginning from the ground up. Transparency through every stage of the process is a top priority to give investors confidence.
PeerStreet is a crowdfunding company that allows the purchase of land as an investment strategy. Its platform offers a two-sided marketplace that allows investors to make investments in real estate debt. The philosophy behind the company is to renew homes that are run down and dilapidated versus taking up more green spaces with the construction of new homes. The company works with investors, lenders, and borrowers in a huge marketplace where transactions between investors and loan originators constantly occur, all through the PeerStreet platform. Their system is based on technology that simplifies the process for all stakeholders and makes it fast and easy to invest. PeerStreet supports private lenders who in turn loan funds to real estate entrepreneurs for the rejuvenation of homes that are aging. The benefits are immense for society with the improvement of neighborhoods and entire communities, creating local jobs, and creating opportunities for investors and lenders to interact. Investors receive access and transparency to volumes of investment opportunities for building and management of diverse investment portfolios.
Fundrise is a crowdsourcing company that allows investors to invest in a diversified portfolio at a low cost, comprised of institutional-quality real estate assets. It’s joined the companies that are bringing the possibility of earning wealth through commercial real estate investments to a larger segment of the population through more affordable investment opportunities. As of early 2021, Fundrise has attracted more than 150,000 active investors who regularly use its platform. The total transaction value is over $5.1 billion with over $100 million in net dividends earned by its investors to date. The insights provided by Fundrise provide for smarter portfolio diversification that takes investors outside of the public markets and into the private real estate sector. This strategy helps in reducing the risks of investment while improving stability. Fundrise uses proprietary software that allows them to reduce their costs. The savings allow Fundrise to lower fees for investors in the form of lower costs. Lower fees allow investors to maximize the returns on their investments. Fundrise offers low minimums for flexibility for investors that start at $1,000 for the basic investment tier. The Core investment tier is for $5,000 or more, and the advanced is for $10,000 or more.