One of the best parts of real estate crowdfunding is the stellar returns that can be generated. In the world of long term investments, one can be reasonably satisfied with investments earning 6-9% annual returns on average. There are many different types of real estate investments within the real estate crowdfunding world, and each of them comes with it’s own set of risks as well as anticipated returns.
One of the most straightforward types of real estate crowdfunding investments are debt transactions where as the investor takes the place of a typical mortgage lender, and lends the money needed for purchase and rehab of a property, before being resold. These transactions typically average between 8-10% annual returns.
When investors are involved on the equity side the returns can be much better (however there is more risk as well). In addition to the annual cash flow available through…
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