Real Estate Funding (REF) can be so difficult for many. The complexities around high budget requirement for REF means there is an overwhelming demand for funding means, and hence the need arises for Crowd Funding platforms.
Crow funding opportunities:
Realty Africa (realtyafrica)is a Property Crowdfunding Company specialist in the Sub-Saharan area, Reality Africa performs site visits and use DRIP financing to protect the investors-A DRIP is an excellent low cost option. With DRIPs, the cash dividends that an investor receives from a company are reinvested to purchase more stock, making the investment in the company grow little by little, source; Investopedia. Investors are welcome to perform their own due diligence as well, even before the project lands on the platform.
This way investments in African Real Estate become accessible to all qualified investors. Also, the investors that don’t have the means to find profitable investments on their own have a chance. Crowdfunding platforms like Kickstarter also provide access and opportunity to a large investor network where investors are able to contribute towards funding investment opportunities. For instance, Reality Africa boasts that the investment opportunities cannot be regarded as full equity or debt, but are a kind of hybrid with excellent double-digit returns. Crowdfunding is a way of democratizing investment and it is ideal for investors who wants to have much control.
(Offices, business centers, warehouses)- Commercial real estate is all around us, and includes apartments, offices, retail space, medical centers, hotels, malls, farmland, apartment buildings, warehouses, Vacation houses or motels/hostels.With warehouses, a typical tenant might be a manufacturing or distribution company. These properties aren’t generally located in areas that would be very desirable for a residential or retail property. Lease lengths are typically five years or more. To generate profit with commercial real estate income is produced through the operation of the building, while benefiting from an appreciation on the property’s value over time..
Invest in REITs (Real Estate Investment Trust Funds):
Real estate investment trust which is governed by the securities industry (amendment) law 2000, Act (590) and regulated by the Securities and Exchange Commission serves as an alternative investment vehicle for diversification into residential and commercial estate activities. This is to provide investors with capital appreciation in a long term.
This gives the investor the leverage of a diversified portfolio. In Robert Kiyosaki’s four quadrants of making money work for you, investing in this kind of mutual funds secures a means to offset your funds against other riskier and short-term investments and in addition hedge against inflation. For instance, in 2015 the REITs returned a 24.3% yield to investors which were significantly above the inflation rate. Managers of real estate investment trust funds usually mobilize funds into securities of real estate companies, development of real estate projects, investment into bonds and land. A good percentage of the fund is also invested in high yielding short term securities to provide liquidity or cash.
Click floatghana to read further on other portfolios of real estate ideas you can explore before and after the corona crisis, to diversify your income.
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