Real Estate Crowdfunding Researched

Came across a great read this week. Real Estate Crowdfunding: Gimmick or Game Changer? A Real Estate Crowdfunding Report which has been researched very well.

You can download it here!

Whenever new technology is adopted by some of the participants in an industry, it has the potential to disrupt the existing players and their roles, or provide immense opportunity.

The three largest global real estate markets in the world are the U.S., China and the United Kingdom. It was these countries that the report focussed on.

Some of the Key findings of the report were:

  • A lot more people have been introduced to Real Estate Crowdfunding that has tapped into the unmet investor appetite from High Net Worth individuals to retail investors
  • The Real Estate Crowdfunding market growth is primarily as a result of the gap in the provision of capital to parts of the real estate market and the strong appetite from investors for high yielding returns.
  • Investors are drawn to the easy accessibility of real estate investments at low-threshold entry levels, the greater investment discretion offered and the attractive returns and lower fee structures.
  • The market evolution has differed in the UK and the USA. In the UK non-institutional investors accounted for 75% of the funds raised on a Real Estate Crowdfunding platform and in the USA the opposite is  the case. 73% if the capital processed through Real Estate Crowdfunding platforms in the USA came from Institutional Investors.
  • The recent evolution of eREIT’s within the U.S. crowdfunding space, and by major corporations in China, is indicative that these evolving products are very similar to those offered by the established real-estate industry.
  • This may force existing stake holders to use their brand and connections to develop more transparent products, streamlined fee structures and other innovations for this receptive marketplace.

In saying all this though time is not on the side of those being disrupted. New market entrants will ensure this is a sprint not a marathon.

Two of the most enlightening parts of this report are:

  1. P2P lending dwarfs all other types of crowdfunding
  2. Asia and the Americas are leaving Europe way behind even though the United Kingdom is acknowledged as being the leading proponent of a vibrant, successful and growing crowdfunding eco-system.

No global players were highlighted in the report but one company that is growing substantially in this space is Wealth Migrate. This is a company that enables investors to invest in properties for sometimes as little as $100. The process is to invest is remarkably easy:

There are the 8 easy steps that could guide you to a share in an investment in a country other than your own..
This can all be achieved in minutes.
1) Open an account (Sign Up) on a Global Real Estate Platform like WealthMigrate
2) Confirm your account
3) Browse properties and select one
4) Select the investment amount
5) Upload your ID
6) Sign the investment document
7) Confirm payment
8) Review and complete for finalisation
Most properties will be held for at least five years, so illiquidity is a risk. However as your property investment is in shares listed on a stock exchange you can sell to other willing buyers.
Global Real Estate Platform Wealth Migrate enables you to do this. Wealth Migrate democratises property investment and allows you to diversify your investment easily both overseas, and between opportunities, with limited funds. Wealth Migrate is an innovative and proven solution to the age-old problem of investing in real estate, which is its high upfront cost. The Wealth Migrate model gives investors the ability to diversify and control their investment in direct property.
Regarding “disruption” I’ve recorded a video here to link this research report and Wealth Migrate.

In today’s world, within any given industry, there are numerous investment vehicles available to you and when it comes to real estate investment a Global Property Portal is one way to dip your toe in the water and diversify. If you are interested follow this link to WealthMigrate
Download this excellent research report and check out this global player. Both give you an exciting glimpse of the future.