When crowdfunding residential real estate, don’t ignore location.
Real estate has long been an attractive investment vehicle that has been out of reach for most individual investors. Crowdfunding real estate sites offer individual investors an opportunity to gain exposure to this asset class. These sites allow individuals to participate in private deals with small amounts of cash. By making multiple, smaller dollar investments across platforms, individuals can gain additional benefits of diversification — reduced risk and potentially higher returns.
Crowdfunded real estate sites differ. Some invest in commercial properties and others in residential. Some allow you to select what properties you invest in and others pool the money and manage a basket of properties. Most offer investors additional choices – broad investing strategy such as income, growth or balanced; property type such as apartment development, home construction, or commercial development; and increasingly, choice of local geographic area for the investments.
HousingIQ helps investors understand how local markets compare, where they are headed, and how they will perform in the future. HousingIQ’s proprietary methodology evaluates the impact of prevailing economic conditions on future house prices for over 400 metro areas. For example, as of Q1 2019, Nashville-Davidson–Murfreesboro–Franklin, TN metro area is poised to outperform most local markets; Yakima, WA market has sharply moderated in the last twelve months; Binghamton, NY metro market is on track for being in the lowest performance tier; and Lubbock, TX has made the greatest improvement in the last twelve months.
All markets present opportunity, if one can only decipher the context. HousingIQ provides investors that context so they can better understand the risk/reward profile of a local geographic market and make profitable decisions.