By Amir Baluch (Guest Contributor)
2012 was a pivotal year in the world of real estate investment. According to Forbes, just three years ago, with the passing of the JOBS Act, equity crowd funding was legalized, and the face of real estate investment changed forever. A whole new world of possibilities has opened to all levels of investors, one which is especially attractive to those interested in diversifying their portfolios and preserving their wealth.
As a savvy investor, you are most likely already aware that real estate is one of the most stable long-term investments available to you. If you are interested in hedging your investment portfolio against inflation and other market dips and spikes, you should be researching your options for investing in real estate.
Though crowd funded real estate projects have grown in popularity and shown great success over the last three years, many people still assume that real estate investment requires a large amount of liquid capital. Though independent investments, hedge funds, and some REITs (real estate investment trusts) still require a large initial investment, real estate crowd funding sites allow a great deal more freedom and flexibility.
Rather than investing all of your liquid capital (or all of the capital you have allocated for real estate investment) in a single property, you may now divide that money up among a number of properties and projects. Many investors prefer this approach, as it involves less risk and requires a smaller initial investment, as well.
For example, rather than betting all of your assets on a single property or development, which may or may not succeed, you now have the opportunity to more efficiently and effectively leverage your investment capital by investing smaller amounts in several different crowd funded developments.
Real estate has always been a safe and stable means to preserve wealth and hedge against inflation. However, for many years it was not open to most investors, simply because the cost of investing was so prohibitive. Today, though, thanks to the JOBS Act and crowd funded real estate sites, investors at all levels can protect their wealth and diversify their portfolios.
According to Entrepreneur Magazine, there are now eighty-five active real estate crowd funding sites for investors to choose from. We expect that number to grow by leaps and bounds over the coming years as real estate investment moves into the future. Protecting your wealth against market fluctuations and inflation has never been easier or more profitable than it is through these sites.