UPRETS Insight ｜ Real Estate Crowdfunding: A Brand-new Path for Mitigating Covid-19 Impact
The real estate market has been hit badly due to the pandemic Covid-19. Many promoters have now stopped construction due to the shortage of raw materials. The construction companies would face a severe loss. The best way to come out of this worst situation is to go for crowdfunding. Real estate crowdfunding is gaining massive popularity as it is letting a group of investors pool in the money to invest in a property that is expected to boom in the future. It is a new way to invest in commercial property. This crowdfunding will raise the money required for making a real estate investment. Many investors are showing interest in crowdfunding to overcome the losses due to the Covid-19 pandemic. The best thing about crowdfunding is that the investors do not have to deal with the brokers, real estate agents, and contractors. There are many crowdfunding platforms that will help you get funds and let the investors get returns.
The Relevant Studies Say It All
Facts & Factors have published a report on the real estate crowdfunding market by investors. The study was carried out at both the regional and global levels. The past data is used to predict the revenue of the real estate from 2020 to 2026 in USD billions. The study would give real estate challenges due to Covid-19. Alongside this, it helps you learn how it is going to have an impact in the future. It also provides the demand for real estate property. The top market places which are involved in the real estate crowdfunding are analyzed. The companies are trying their best to overcome the challenges thrown by Covid-19 for their business. Indeed, this pandemic took a toll on the market size at the current time. Many small to medium scale companies are struggling to keep up their pace in the market in terms of revenue and getting new customers. The industry leaders are trying to come up with the best practices that a business can embrace to fight with situations like this pandemic.
Opportunity for Small Investors Are Emerging
Companies must tweak their business practices to take businesses out of risks. Companies must list risks and possibilities to understand how the industry is going to have an impact. The opportunities that are there for the real estate industry are analyzed. The crowdfunding for real estate can be successful for an investor only when they choose a reliable crowdfunding platform. The best thing about crowdfunding is that the investors from across the globe would be able to gain access to the broader real estate market just by investing a small amount of money. Due to the pandemic, the real estate industry has become active with crowdfunding. The crowdfunding will let you invest in the property with a small amount.
Portfolio diversification
The sought-after benefit you can reap through crowdfunding is portfolio diversification. When you diversify your investment, it reduces the chances of your money being at stake. You can invest the money in numerous investments. If one of the properties fails to generate you the income, the other investments will bring you profits. It is better to invest 100000 in five different properties instead of buying a single property.
Easy to Access
It has become pretty easy for the investors to carry out the real estate deals, by sitting at the comfort of their home, through crowdfunding platforms. The private real estate investment was only accessible to the wealthy and affluent people. They have a lot of money, and they use this money to invest in the property. With the pandemic, there is a sea of changes witnessed in the real estate industry. The online crowdfunding platforms are giving the entry point for even the small investors to invest a small amount in a property.
Geographical Diversification
The best benefit the real estate investors and companies can reap is the geographical diversification. You can now invest in the property abroad. Not all areas would perform the same in the real estate industry. The real estate boom in one city may be healthy, while in the other city, it would see a steep fall. If you invest the money at a single location and that location has a downturn, then you would lose the money. When you invest small amounts in different properties through crowdfunding platforms, you can earn a whopping amount in the form of profits. It is also less risky.
Passive Investment
Investing the money in the real estate crowdfunding platform would act as a passive investment for you. Earlier, people used to make a traditional investment where they pay a hefty amount of money and buy the property. It becomes challenging for them to maintain the property and have to bear all the risks and repairs. When you go for crowdfunding, you would be investing in the property where the third party developer would do all the work on your behalf. You do not have to go through the hassle of maintaining the property.
Conclusion
Not many people have enough money to buy a real estate property as the value is too high. This is where the crowdfunding platform is giving a great opportunity even for small investors to invest in a property. And, to make it easier for investors, there are companies like UPRETS. It is a fast-growing company that would turn the real estate properties into digital assets using the blockchain technology. It allows even the small investors to own a fractional share in the property and reap the share of profits from it.
About UPRETS:
UPRETS is a platform focused on simplifying investment in real estate by advising on and digitalizing assets and securities.
We are dedicated to providing a convenient, legally compliant and advanced real estate digital securitization platform for property developers, asset owners and investors globally.
By utilizing our UPRETS platform, real estate developers and assets owners can create digital securities for their properties, providing investors with various low-barrier, secure and convenient forms of investments.
Backed by a publicly listed real estate conglomerate (NYSE:XIN) and our award-winning, patented blockchain technology, Xbolt, we bring a network, experience and luxury assets to the platform.
For more information about UPRETS,
visit https://www.uprets.io
LinkedIn: https://www.inkedin.com/company/uprets2019
Medium：https://medium.com/uprets
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Facebook: fb.me/uprets2019
