Equity crowdfunding is different from other types of crowdfunding methods in a number of ways. Utilizing new legislature, this form of investing opens up new doors – and advantages for many real estate investors.
As a more conventional approach to crowdfunding than rewards- or donation- based models, equity crowdfunding offers a proportional stake in a property, or properties, in exchange for investment.
For many investors, the traditional process can make real estate ownership seem daunting. Fortunately, with real estate crowdfunding platforms like HotelierCo, real estate investors can bypass common roadblocks to ownership. Read on to learn about the benefits of equity crowdfunding for real estate investors.
Financial security for real estate investors
Equity crowdfunding offers real estate investors more financial security than some other methods by offering a more traditional approach through structures created with investors in mind. Through these platforms, investors gain the support of partners with in-depth knowledge in their respective sectors.
Reaching far and wide in these networks, equity crowdfunding platforms like HotelierCo look for great real estate properties for investment. They closely monitor investments for shareholders, from tracking capital growth to development progress and dividend payments.
Real estate investment, without the hassle
Owning and operating any property is a detailed process. Whether you’re investing in apartments or hotels, there is always work to be done. Flipping houses, revamping historic mansions and building boutique hotels requires time — something many investors do not have.
Equity crowdfunding platforms like HotelierCo offer real estate shares without landlord duties, while partnering with experienced hospitality management companies like Valor Hospitality Partners oversee operational strategies and daily operations. This leaves investors free to enjoy the luxuries that come with hotel ownership.
Broad portfolio diversification — sometimes across continents
Up until recently, traditional real estate investors generally only had access to local properties. Online equity crowdfunding platforms give investors access to exciting opportunities, otherwise beyond their reach.
With bookings in the trillions, travel and tourism is one of the fastest-growing and most profitable sectors in the world. With digital equity crowdfunding platforms like HotelierCo, investors can share the wealth – in just seconds – all without leaving the comforts of home.
Real estate investments with large-scale marketing and PR
While crowdfunding platforms such as HotelierCo typically have a network of signed-up investors to start with, the rest of the fundraising efforts are up to them. This requires a multi-faceted, large-scale marketing and PR effort in order to spread the word and persuade a wide audience to invest.
When you’re investing in a property through an equity crowdfunding platform, the platform’s provider is already doing the legwork to generate buzz around your investment. In the end, those promotional efforts will increase brand awareness and attract not only investors, but future customers.
Smaller investments from a larger pool = more opportunities for real estate investors
Ever wished you could have gotten in with a successful startup like Facebook or Uber at the ground level? Equity crowdfunding makes that a reality.
Unlike more traditional investment methods, which rely primarily on small groups of institutional investors, crowdfunded campaigns target broader groups of people with investments allowed from everyone. This gives people the opportunity to share in the stakes of projects with huge potential – at affordable rates. For real estate investors, this broadens the horizons significantly.
Still not sure if real estate crowdfunding is a good investment? Find out more with a free membership to HotelierCo. Click here to get started.