My first time in real estate Crowdfunding
We tell you a case of a fictional character who one day decides to invest in real estate crowdfunding, do you feel identified?:
I had always been interested in the brick. The world of investment in real estate attracted me especially, and one day I decided to throw myself into the pool.
I decided to find some floor that did not have a very high price, but not the cheapest in the market. Something with an average price, beautiful and in a nice area. I had already accumulated some savings and I thought that, to have it in the bank, better invest in something different and take profitability.
It was then that I began to search the Internet for the latest developments in the investment world. That's how I knew what real estate crowdfunding was about and I was completely seduced by its characteristics. At first it was difficult to understand how it worked. I knew what crowdfunding meant, but I did not understand how I could get a payoff from my savings. So the first thing I did was to learn about the world I was getting into. And the 5 reasons I found to invest, fascinated me.
From the sofa in my house I could diversify my portfolio by investing little money and with a relatively low risk. Besides, I had seen in my house the problems of traditional investment in real estate. My parents had a flat in a central area of Madrid and from time to time the tenants (mostly students) were leaving the apartment, so I had to worry about finding new tenants who adapted to the profile that I liked to start a new cycle on the floor. And not only did I have to worry about finding tenants, every month I practically had to watch for some of their needs: ranging from changing a blind to a delay in rent payment.
With real estate crowdfunding, I saw that all those inconveniences that can have the property in one of its investment slopes had disappeared, since with real estate crowdfunding, you become a passive actor.
Without further ado, I found this opportunity:
Small Town House in Moston, UK*
I found this property through House Crowd, one of my favorite real estate crowdfunding platforms. The property is in the small town of Moston in the United Kingdom.
The objective of this project was to carry out a complete remodeling of the property to increase the rent.
The total price of the project was 54,000 pounds, which included 8,500 pounds of remodeling; A lower prices than the average of other properties in the area.
The monthly rent was 450 pounds, but after the renovation the rent rose to 520 pounds. That is, it increased the profit by 9.98%.
It was my first time in real estate crowdfunding and since then, I still keep pouring money into my pocket.
*The case study is from Real Estate Crowdfunding 101 by Marco Schwartz