3 min
Editorial Invest in Slovakia
More than €50 billion has been invested in real estate around the world through real estate crowdfunding!
And this is already an amount to pause and think about. Why does it work?
The idea of real estate crowdfunding is quite simple but brilliant at the same time. Ordinary people coming together to fund an investment opportunity where everyone wins.
If I have enough financial capital, I can finance a real estate project myself and get a very decent return from rentals or sales. Provided of course that I have the right information and sufficient experience. Money is not everything in this case.
But what if I only have a smaller amount that I would like to evaluate? For example, €5,000. One simply cannot buy a property for that.
Put them in the bank? Or would you rather not? Money deposited in the bank is steadily losing value.
This is precisely why ordinary people around the world are coming together to raise the necessary capital to finance promising investment projects.
Example.
100 small investors invest EUR 1 000. The amount of EUR 100 000 is already large enough to finance a real estate project in cooperation with the main investor.
And the profit?
The profit is shared equally between all parties involved. According to the agreements and contracts they sign between them. A great win-win situation for all parties. A simple yet ingenious financing structure.
✅ Real estate is an asset that has its current value as assessed by an expert opinion. In the vast majority, this value is increasing day by day.
✅ Every single investment from people through crowdfunding is secured by assets. No cryptocurrency or forex will give you that.
✅ Investors in the INVESTORS CLUB can invest in lower amounts in more projects. He spreads the eggs into several baskets (projects).
If you decide to invest independently of crowdfunding in an apartment or condo, you have one big egg in one basket. It doesn't have to be unambiguously bad. You just need to name the potential investment risk.
Real estate crowdfunding is a very simple and at the same time very successful model of investing in real estate.
Any investment project can be financed in this way. If it is realistic. It is relatively easy to secure a property investment in the event of adverse circumstances. Real estate is not a guarantee of security, it is a guarantee.
Fingers crossed for you on your passive income journey!
