Author Topic: REITs vs Real Estate Crowdfunding  (Read 561 times)

jimmy210248

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REITs vs Real Estate Crowdfunding
« on: June 10, 2020, 11:04:22 PM »
Property co-investment is commonly associated with REITs. Although there are stark similarities in terms of crowdfunding to purchase properties, there are significant differences with how the deals are being structured.

REIT is usually publicly traded in the stock exchange, similar to ETF (exchange traded fund). Investors usually own a small share (depending on the amount of shares an investor is willing to purchase) of the REIT company, while the REITS company owns and manages different investment properties. Usually investors do not have the liberty to select the investment property which he/she is interested in (unless he/she is a significant board member). The REIT company will make all decisions on the real-estate investment and how the property is being managed.

On the other hand, property co-investment allows investors to select, and construct their property investment portfolio based on their personal risk appetite. Investors have the freedom to allocate where their capital is being invested. There is also more transparency in terms of how the investors’ capital is being invested for co-investment, unlike REITS where most information can only be obtained from the yearly and quarterly financial statements produced by the company.

Check our the advantages and disadvantages of REITS and Co-investment: https://www.realvantage.co/insights/reits-or-real-estate-coinvestments/ and https://www.realvantage.co/insights/, for more information on real estate investments.



Ellen Dempsey

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Re: REITs vs Real Estate Crowdfunding
« Reply #1 on: June 15, 2020, 08:59:12 AM »
Personally I prefer crowdfunding as it gives more transparency and control. Also with crowdfunding, it is easier to track how the properties are performing. It requires less money than REITs. For example, people can invest even 1000 euros with property crowdfunding platforms.
There is an article that describes this question, and I think it can be useful for someone: https://realtybundles.com/learn/blog/11-property-investment-strategies-and-trends/463-property-crowdfunding-vs-reits-which-to-choose

Fred93

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Re: REITs vs Real Estate Crowdfunding
« Reply #2 on: June 15, 2020, 03:11:21 PM »
There are so many of these spam messages lately linking to some crowdfunding real estate site, almost always from some new user with only a few posted messages (and meaningless ones!) that it seems quite likely that these crowdfunding sites must be in big trouble.

titlewealth

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Re: REITs vs Real Estate Crowdfunding
« Reply #3 on: August 07, 2020, 10:10:45 PM »
There are so many of these spam messages lately linking to some crowdfunding real estate site, almost always from some new user with only a few posted messages (and meaningless ones!) that it seems quite likely that these crowdfunding sites must be in big trouble.

Interesting observation

yes I am a new member, I've been looking for a place to chat with investors that are investing outside of the stock market. More communities out there are really just focused on the US stock market
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jrl

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Re: REITs vs Real Estate Crowdfunding
« Reply #4 on: August 08, 2020, 03:40:32 PM »
I've been looking for a place to chat with investors that are investing outside of the stock market.

Yeah, it's extremely frustrating. Everyone seems to be a stock market casino cheerleader these days.

I'm currently looking for other alternatives since with Folio gone I'll need something else to invest my Roth IRA in.

Current allocation: 23% precious metals, 12.5% cash, 12.5% LC, 6% Crypto currencies, and the balance (46%) is in traditional managed retirement accounts.

The 8-14% return from Folio is going to be hard to beat.

titlewealth

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Re: REITs vs Real Estate Crowdfunding
« Reply #5 on: August 08, 2020, 07:06:27 PM »
Are you precious metals allocation ETFs? That's one big gap in my portfolio. I wish there was a way to share an image on this portfolio, I could share my allocation image.
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jrl

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Re: REITs vs Real Estate Crowdfunding
« Reply #6 on: August 10, 2020, 01:54:02 AM »
Are you precious metals allocation ETFs? That's one big gap in my portfolio. I wish there was a way to share an image on this portfolio, I could share my allocation image.

Nah, they're physical. Not part of any tax-advantaged account.

The premiums are crazy high right now as inventory/supply is low:

https://comparegoldprices.com/

https://comparesilverprices.com/

Even the buyback prices on some sites are higher than spot.

BTW - You can upload images to imgur.com and post the link to the image. That seems to work well enough.