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New to Real Estate Crowdfunding? Here is What to Expect

Oct 5, 2017

 

Real Estate Crowdfunding is one of the most efficient, dynamic, profitable and fast-growing investment opportunities available today. It’s estimated that in 2015 Real Estate Crowdfunding’s market worth was US$2.6 billion, which is an increase of over 150% from the previous year (bear in mind that the industry only came about in the last five years or so).

As a real estate investment method, the basic premise of Real Estate Crowdfunding is simple: instead of one investor making a large lump sum purchase of a property, multiple investors share the cost of that property by paying anything upwards from US$2,500 each; then when the property is sold after the investment period is over, each investor (or crowdfunder) receives a proportional share of the returns from the sale (depending on how much they invested in the first place). Over the investment period (which with Bricksave is 4 years), the investors also collect a share of the rental income from the property’s tenants, which means that money is being collected from the investment from almost day one.

The actual process of Real Estate Crowdfunding is equally straightforward: go to the platform website, create an account, browse properties, choose a property/properties that you want to invest in, decide how much money you want to put in, and then click to invest. Once a property is fully funded, Bricksave set up a unique limited company to manage the property and the investment. All properties offered up for investment are carefully chosen by the platform’s expert in-house real estate team, working alongside local teams on the ground in each country the platform operates in.

Real Estate Crowdfunding’s elegance and simplicity provides a cheaper, easier and more efficient method of real estate investing, while low costs and minimum administration also give investors the opportunity to fully diversify their property portfolio and maximise the potential for gains. Being an online application, Real Estate Crowdfunding also means that you can invest anywhere in the world regardless of your current locale, which (combined with low investment costs) gives investors new access to cities like New York and London.

In 2016, over 50% of professional investors said they were planning to allocate more of their portfolio to real estate, while only 3% of non-professional investors (in the US) said that they were actively investing in property – Real Estate Crowdfunding gives people the opportunity to close that disparity in the market and open property investment up to an entirely new demographic. This is commonly referred to as the democratization of investment: an industry that was previously restricted to high-net-worth individuals and professionals is now available to all.

 

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Properties Open for Investment

Apt. 306, The Club at Bay Harbor, Miami

Apt. 306, The Club at Bay Harbor, Miami


Miami, United States of America


Estimated Annual Return* 12.36%

Length of Project 4 years


69% Funded US$ 419,395

Target US$ 612,033


The Chatsworth, New York

The Chatsworth, New York


New York, United States of America


Estimated Avg. Annual Return*7.14%

Total InvestedUS$ 0

 


0% Funded US$ 0

Target US$ 692,521


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Apt. 7o2A, Corsega 60, Barcelona

Apt. 7o2A, Corsega 60, Barcelona


Barcelona, Spain


Estimated Avg. Annual Return*9.78%

Total Invested€ 0

 


0% Funded € 0

Target € 432,600


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*This amount is an estimate and should not be considered a guaranteed figure. The value of your investment can go up as well as down. In most circumstances the maximum duration of an investment will be 4 years.

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