A Guide On Real Estate Crowdfunding

Real estate crowdfunding entails the amalgamation of funds done by the many investors in a real estate project. This type of crowdfunding is different from the venture and loan crowdfunding in terms of investments made.

There are two fundamental ways of investing in crowdfunding deals:
1. Equity
2. Debt

Equity Crowdfunding:

The investors can make equity investments in the residential or the commercial properties. In lieu of the Real Estate Crowdfunding Platforms of the project, the real estate investor receives an equal share in the property. Returns are then taken up in the form of the rental income generated by either of the properties.

Debt Crowdfunding:

Real Estate Co Ownership are the next best option to equity. When you are investing in a debt, you're basically investing in a mortgage loan related to the particular property. Loans are to be repaid with interest, a part of which is later paid to the investor as a part of the deal.