With all the talk of the new SEC regulations and legislation for intrastate crowdfunding, It's easy to get lost in the details. Crowdfunding for real estate has grown into a billion-dollar industry within a couple of months and there's a rationale for this. Crowdfunding allows investors to gain access to the market for real estate, while reducing the risks that are inherent in any investment.
The property crowdfunding market has several appealing benefits. A common thing that investors hear is they have to diversify their portfolios. In the past, we've talked about the concept of real estate crowdfunding, it lets investors diversify their portfolios with investments in the market for real estate.
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Although the stock market is on the rise in recent times however, it's not certain that this trend will last forever as real estate provides investors the chance to diversify their portfolios. Private real estate yields generally don't rise in conjunction with the market for equity and aren't as prone to market volatility in the short term.
There is no way to forecast market crashes, however diversification in your portfolio will help you weather market downturns better. Every real estate investment isn't exactly the same and the real estate market isn't the same. Crowdfunding in real estate gives investors the possibility of varying their risk tolerance by investing in many more markets than they could.
Real estate crowdfunding can help you achieve this. Additionally, an investor who is adamant about the market they are interested in can concentrate on the market, even if they live half way across the nation. Real estate crowdfunding broadens the possibilities for real property investors.