Commercial real estate crowdfunding is a modern-day investment idea. Going beyond the opaque and relatively old-fashioned real estate investments of the past, crowdfunding offers pocket-friendly and lesser time-consuming investment options to all individual investors. Here is how.
While most investors find real estate a very alluring and a great investment vehicle, they are equally intimidated by the option. This is because investors don’t have the understanding, capital, time, or experience to make smart investments in real estate. At times, some investors don’t want to deal with the hassles of investment, instead, they would rather reap the high returns and not have to worry about managing their property. If you are an investor looking to enjoy the returns of real estate without worrying about asset management, then you’re in the right place.
What Is Commercial Real Estate Crowdfunding And Why Is It Gaining Popularity
Commercial real estate crowdfunding is an investment avenue that sources capital from the crowd for any commercial project. Commercial real estate projects usually include funding multifamily apartments, office workspaces, multi-story retail buildings, etc.
Through crowdfunding, investors use their capital to invest in high-end commercial real estate projects without having to worry about directly working on the property or managing it. The crowdfunded property is usually managed by an operator or sponsor and all an investor has to do is invest their assets to fund the project.
Crowdfunding is gaining popularity because of the following advantages:
- Bigger networks and high returns
Crowdfunding in real estate offers access to bigger networks and high-end projects at relatively smaller prices. The cost of raising funds is also lower.
- Easier to make money
Crowdfunding makes earning passive income or even generating capital for new projects easier for entrepreneurs.
- Lower risks and damages
Crowdfunding in commercial real estate has already established itself as a safe investment option, but to make things better, in crowdfunding, the expenses are shared, and so chances of a loss are even lower.
- Real-time feedback
Crowdfunding platforms are very particular about providing transparent infrastructures and follow full disclosure policies so that the investor is always aware of the progress and the company doesn’t lose accountability.
- Hassle-free long term investments
Real estate investment platforms such as Assetmonk perform due diligence on behalf of their customers and provide a customer-friendly transparent system making investment hassle-free. Assetmonk also ensures that investors get regular returns.
Crowdfunding Commercial Real Estate Trends in India
In India, crowdfunding real estate is offered in a hybrid model, mostly functioning through rental yields. A major priority of most real estate investing platforms in India is to boost the investors’ confidence and provide excellent security for their money.
Since Crowdfunding in India is still in a budding stage, there are very few platforms that offer these in the market.
Similarly, there aren’t many legal rules or laws binding the investor or the platform through which you invest. In that case, it is essential that investors have clarity of thought and know what they want and are getting into before moving forward with an investment.
Why invest through Assetmonk
Assetmonk is a Hyderabad-based investment platform offering high-end deals in real estate crowdfunding and fractional ownership in Hyderabad, Bangalore, and Chennai.
Assetmonk has always worked with a vision to democratize the commercial real estate sector and make institutional-grade properties available to an individual or retail investor.
Why is Assetmonk the future of investment?
- Minimum Investment
Through Assetmonk, an investor can invest a sum as small as Rs. 10 lakh in Commercial grade properties and enjoy premium returns.
- Short-Term and Long-Term deals
There are different investment plans depending on the demand and requirements of each investor. Depending on their financial status and immediate/long tern requirements, investors can select from our growth, growth plus and yield options.
- IRR and capital appreciation
We also offer an attractive IRR of 14-21% p.a.
With the regular returns and capital appreciation promised at Assetmonk, investors get to witness their capital appreciating and generate a passive income.
- Real-time investment tracking and customer-first policy
We have an interactive dashboard that lets investors access all important information at any given time, Assetmonk also follows a strict investor first policy.
- Easy Investment
At Assetmonk, we perform a prospective company’s due diligence on the customers and also provide full-time asset management support to our investors to make their investment as easy as possible.
FAQ’S
What is crowdfunding real estate?
When a group of investors comes together to fund a real estate project, it is called crowdfunding real estate.
Can you make money from crowdfunding?
Yes, in crowdfunding real estate investment, the profit that a company or project makes is paid to investors depending on the amount they invested.
How much can I invest in crowdfunding?
With a good investment platform, you can invest any amount from 10 lakh to 10 crores (the upper limit is not specified) in India.