7 Biggest Mistakes Real Estate Crowdfunding Investors Make
The biggest mistakes investors make when investing in real estate online
Many of our users have been asking about the best way to invest in real estate online. They want to know how to reduce the risks associated with this form of investing. For this reason, we have compiled a list of the biggest mistakes investors make when investing in real estate online. We will show you how to avoid them in order to be more successful.
When investing in real estate crowdfunding, the risk-to-yield ratio is very attractive in comparison with other investments such as stocks. On top of that, it has the advantage of low volatility. Although there is still a risk, consider the following tips before you start to invest. They can help you reach your goals while saving you time, energy and money.
The 7 biggest mistakes new real estate crowdfunding investors make:
-Insufficient research
-Lack of strategy
-Expecting to get rich quick
-Not diversifying
-Over investing
-Choosing the wrong platforms/projects
-Giving up too early
1. Insufficient research
We will start with the most common and serious mistake out there: lack of research. Proper research is a must for all investors, not only in the real estate market.
When people are buying a new product, such as a TV or a mobile phone, they spend hours researching all kinds of information such as online reviews and comparisons. The same applies to real estate investments. Don’t underestimate the power of research and keep in mind that not all platforms do the research for you. And even if they do, spend some time doing a little research of your own. Such independent information can help reinforce whether an investment is one you wish to go ahead with, or to avoid.
2. Lack of strategy
Don’t be afraid of making your own investment plan. Doing so will take you little time and can save you a lot of money.
Have your investment strategy ready before you dive in. Decide exactly what your goals are, how you want to reach them and if they are achievable. We recommend using SMART objectives (Specific, Measurable, Achievable, Relevant, Time-based), to set your goals and to keep track of them.
Also, don’t be afraid to use other planning tools such as……Continue reading
BrikkApp is a global investment marketplace offering trustworthy data and experience from the real estate crowdfunding world. Visit our Industry Insights section to learn more about this form of investing.
