Reading time: 1.45 min
Tip: You are able to read more about a specific topic by pressing on the blue parts of the text, which will lead to the articles, blog posts that give you more information.
Think about what it would be like if you never had to worry about money. There would be no debt to keep you up at night. You could check your bank balance without wincing. You could even splurge on something fantastic and actually be able to feel excited about it. How amazing would that be? 🙂
This is called financial freedom.
Research shows that it can make you feel happier and more satisfied with your life, regardless of the actual value of your bank account. But how do you get it?
Crowdfunding and the asset classes
Experts say that one of the savviest strategies for achieving financial success and freedom is diversification. This means spreading your money across several different asset classes.
An asset class is a particular type of investment. Stocks, for example, are ownership shares in a company. These pay dividends if the company’s value on the stock market increases. Fixed income investments allow the investor to lend money to an organization in exchange for interest on the loan. Cash equivalents, such as money market accounts, are easily accessed and particularly liquid.
The final type of asset class includes commodities and real estate. These more tangible assets tend to be less vulnerable to inflation, but they have often been less accessible to the average investor. Crowdfunding has changed all that.
What is real estate crowdfunding?
The model of crowdfunding allows people to invest in real estate together. Each person contributes a relatively small amount and becomes a part of a Limited Liability Company, which holds the title on a piece of real estate or offers a loan secured by the property. The operating agreement of the company entitles each investor to a share in the income that the property generates.
Benefits compared to other asset classes:
Crowdfunding allows you to place your assets in real estate without putting up tens of thousands of dollars or more for a down payment. This means access to property types such as commercial buildings and mid-size apartment buildings, which might otherwise be out of reach.
Investing in crowdfunded real estate also empowers you to create a customized portfolio. That way, you can select only those projects that align with your goals.
Finally, because real estate tends to be less volatile compared to other asset classes, it offers more stability in your portfolio and thus in your overall net worth. This is the cornerstone of financial peace of mind.
The goal – Financial Freedom!
Regardless of the investment type that you choose, your goal is likely to increase your net worth with minimum effort and attention. As one of a community of investors, you can let the professionals handle the logistics of the investment and focus on watching your assets grow.
Every new way that you invest can be another step toward a life free from financial worries. If you haven’t thought about real estate crowdfunding before, now is the time to see how it can free you from your money constraints!
And in case you are still wondering if you should invest with Crowdestate, here are 5 reasons why:
- no fees,
- minimum investment 100€,
- use our marketplace to buy or sell shares,
- you can have multiple investment accounts and invest under your company’s name,
- you can set up an Autoinvest, which will invest for you (so you don’t have to worry about missing an opportunity).
Go and invest! 🙂