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Published February 02, 2017
Adding commercial real estate to an investment portfolio used to be reserved for the very wealthy, but thanks to new technology, anyone with a few bucks and an appetite for risk can find an entry point for investment these days. And with the commercial real estate market making a comeback in key cities, it might be a smart investment.
Companies like Fundrise and Realty Mogul – with more popping up every day – use crowdfunding, an online method for aggregating capital from multiple smaller investors, to enable a pool of investors to directly access proposed commercial real estate ventures.
If you are thinking about investing in commercial real estate via one of these vehicles, here are the three most important things you need to know:
As with any other high-risk investment, the rewards can be great. Some projects promise (and deliver) returns in the mid-teens. You pay a company like Fundrise an investment management fee on the capital you have invested through it.
For investors who want a lot of control over their own portfolios, these crowdfunding mechanisms allow you to browse opportunities based on location (including across state lines), project type, risk and return profiles. You can manage your own legal documentation, funds transfers and ownership recording. You can manage and track your investments in an online portfolio, automate distributions and access regular financial reporting whenever you wish.
https://www.foxnews.com/real-estate/real-estate-investing-not-just-for-millionaires