Using a real estate Crowdfunding platform that allows you to invest in small amounts and in specific projects of your choice is a good idea. But it comes with a number of challenges.
The first is clearly, the rules and regulations, under present law you can only increase up to 2 million of 20 retail investors and make only 20 deals a year. And there are significant restrictions around the sale.
If you want wholesale investors to take part in your funding project then you are legitimate, but the fact of the matter is that wholesale investors had no shortage of investment opportunities presented to them.
It is very important to find a reliable real estate crowdfunding platforms for property crowdfunding. It is the only way to get successful in avoiding all the errors and difficulties.
The second issue is if you are going to offer people the opportunity to invest in a home then it is important to invest in capital growth and rental returns.
But there are a large number of documents that go into making a possible investment offer and the cost of compliance means that several percentage points are thrown from the return.
Assuming capital growth rates of 6 to 7% and rental yield of 4.5% in the hands of rental yields come to just above 3-3.5% and capital growth is meaningless until the house was sold. 3 to 3.5% better than the level of the bank's money will be offered but not enough to get even retail investors out of bed.