The Pros and Cons of Crowdfunding in Real Estate

On this week’s episode of the Not Your Average Investor Show, we talked to the Founder and CEO of Bullish Studios, Brian Hanly. Bullish Studios is “A creator-focused growth partner and content studio empowering brands and talent to do what they do best.” Most of our discussion with Brian included the term “crowdfunding”, the advantages, disadvantages, and JWB’s experience with it.

Crowdfunding is a way companies fund development projects. They do so by raising money, usually on the internet, from a large group of people. With crowdfunding being so popular these days we discussed the advantages and disadvantages that follow along with it. Some of the advantages to investing in crowdfunding included, instant diversification across markets, providers, and asset classes, and that you do not need a lot of capital to invest. Some of the disadvantages discussed include your limitation to control when you are going to dispose some of these assets, and that a lot of the available crowdfunding options are only for accredited investors.

To give and idea on how sought-after crowdfunding opportunities are, we shared a personal experience we had with it. JWB decided to explore the idea of crowdfunding to raise money for some of our projects, so we became a sponsor to one of the crowdfunding platforms. In 24 hours JWB had raised around $1.5 million and were featured in the news for it.

Crowdfunding can be a great opportunity for you to invest in real estate for those who are looking to diversify their investment portfolio without a lot of capital. To discuss if crowdfunding or direct ownership of rental properties is right for you talk with us at www.chatwithjwb.com. For more information on real estate investing and other asset classes, don’t forget to tune in Tuesday and Thursday at 12:30, and register for the show at www.NYAIS.com.