The Different Types of Real Estate Crowdfunding Deals

Real estate investing can be as complicated as you’d like it to be. There are a million and one ways to do it, and all require some amount of education and due diligence.

Crowdfunding platforms have made it easier for outsiders like me to have access to deals that used to be for insiders only with a lot more capital than is now required.

Debt Deals

With debt deals, you act as the bank. You agree to lend the borrower (often a fix and flipper) money at a set rate of interest.

Equity Deals

An equity means that you participate in the upside, that you’re essentially a part owner in the property.

Single Syndication

If it’s a syndication deal involving new construction like the development of an apartment, office, or retail space, the payment structure will likely be completely different

REITs – Real Estate Investment Trusts

As an investor, you buy shares of the REIT. The REIT earns income from the properties and makes distributions to investors.

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