By Bricksave Admin | Bricksave
October 15, 2020
News > Blog Article > How real estate crowdfunding lets you …
Always wanted to be like Jeff Bezos or Bill Gates? Investing could be the way to make your fortune. While you might think you need lots of cash to get started, real estate crowdfunding gives anyone the chance to begin investing like the wealthy.
The world’s wealthiest person, Jeff Bezos, is seriously well off. His net worth is greater than the gross domestic product (GDP) of Iceland, Luxembourg and Cyprus put together. And one of the most successful investors in the US, Warren Buffet, has a fortune greater than the GDP of the Dominican Republic – and it’s the 64th richest country in the world.
These tycoons have earned their wealth through decades of hard work, smart investment or business decisions, and a degree of luck. However, anyone can begin investing and growing their own personal wealth through options like real estate crowdfunding. Even if you have modest savings, you can start investing like the world’s wealthiest individuals. Here’s what you need to know.
You can begin investing an affordable amount
Most investors that don’t have inherited wealth start out small. Warren Buffet claims his first investment was just USD 1,000 (he was only 12), and he used the returns to purchase pinball machines to rent out to local businesses. Real estate crowdfunding allows you to start investing even if you can’t afford to invest much.
By investing as little as $1,000, you can begin exploring the world of real estate investments through crowdfunding. Over time, through property value increases or regular rental payments, you may accumulate enough money to explore other investment opportunities. All you need to do is start small, and your decisions could pay off.
You’ll have access to lucrative property markets
Knight Frank’s ‘Attitudes’ survey found that 24% of Latin America’s wealthy individuals plan to invest in overseas property in the next year. It’s a great investment route to explore, but unless you’ve got the right connections or investing knowledge, it can be hard to break into property markets outside your own country. As a result, people who are not High Net Worth Individuals (HNWI) can miss out on exciting international opportunities.
Real estate crowdfunding, however, lets you access these strong and stable markets, including the US and European property markets. Anyone can invest through our easy-to-use investment platform and own a stake in a residential property in popular areas.
You can take advantage of economic downturns
During times of economic crisis, property prices slide as people can no longer afford to buy homes. This is bad news for the average person, but wealthy investors see it as an opportunity. They can purchase cheap properties to either rent out or wait until the economy recovers to sell them on for a higher price.
Most new or casual investors don’t have the kind of money to take advantage of these opportunities. Even if you can afford to buy a property, tying up your life savings into one asset is risky, especially during a recession or economic crisis. Real estate crowdfunding is a lower risk and more affordable option. Through Bricksave, you can invest as little as $1,000 to become part owner of a property.
You’ll have multiple sources of income
You might think that wealthy people earn all their money in high paying jobs or through running successful companies, but that’s often not the case. One interview of 63 millionaires found that 62% had more than one source of income. Of that group, 36% had chosen real estate as a place to invest their money.
Investing in property gives you more than one source of income. If you choose to rent the property out, you’ll enjoy monthly rental payments from tenants, before selling the property on for a potentially higher amount. At Bricksave, we’ll make sure to secure tenants for your part-owned property, ensuring you have a flow of regular income as well as a slice of its resale price.
You can enjoy international diversity
Savvy investors don’t just invest in their home country or region. To make sure their wealth is as protected as it can be from sudden market downturns, the world’s wealthy spread their fortunes across multiple assets and regions.
Real estate crowdfunding is one of the easiest ways to invest your money across the globe. You can choose from a number of high-growth property hotspots across the US and Europe, and invest as much or as little as you’d like. To learn more about Bricksave’s investment platform, read our how it works page.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.