Managing real estate investment risk with crowdfunding

When you choose to invest your money in something that has good earning potential like real estate, you are also agreeing to taking on a certain amount of risk. There are ways to manage real estate risk, including investing in crowdfunding project. When you choose to put your money into a commercial real estate project on a crowdfunding platform, you’re sharing the risk with all the other investors. More importantly, however, is that you can take advantage of the expertise of the folks who run the platform.

Most of us don’t have the skills to be able to perform the due diligence necessary to definitively state whether or not a commercial real estate project will be successful. That’s where crowdfunding companies are useful. There are experts on staff who are capable of thoroughly researching the sponsors and lenders, and making an educated decision as to which projects are the best bet.

At Infobrij, we decided to reduce real estate investment risk even more by putting together a team of experts with years of experience in all areas of the real estate business. We have seasoned developers, investment managers, technical experts, market analysts, and others, all of whom work together with the sponsor before and during the project to make sure it’s feasible and comes in on-budget and on-time.

Less burden, more potential

When you put your money into a project that has that kind of support behind it, you’re increasing the odds of a positive outcome. Crowdfunding also gives you the ability to diversify across a number of projects rather than sinking your whole investment into a single one, which is another way to minimize real estate investment risk. The $10,000 minimum means you can study the different available projects and balance out your investment between higher and lower risk opportunities.

Crowdfunding also provides low-risk real estate investment opportunities for lenders. Just like accredited investors, lenders benefit from the expertise of the executives at the crowdfunding company. When a lender works with Infobrij, they have the security of knowing our competent team is working with the sponsor throughout the entire project to make sure it runs smoothly, and all parties walk away with a profit in their pocket.

Creating a win-win scenario

Crowdfunding for real estate creates a win-win situation for sponsors and investors alike. Both sides benefit from working together and sharing their combined knowledge.

If you’re interested in finding out more about low risk real estate opportunities, learn more about the individual projects Infobrij has to offer by signing up for access to our platform. Not only will you be able to read our thoughtful and thorough analysis of each prior to investing, you can follow along on the site as the project progresses to see how your money is working for you.