Real estate investing has been proven as a gateway to becoming a millionaire, since 90% of the world’s millionaires have been created by investing in real estate. It has the potential for higher returns, it is reliable and easy to understand. Even though the idea of becoming a millionaire is appealing, the need for a higher allocation of resources and liquidity keeps the majority of potential investors away from real estate. However, this scenario has changed, and thanks to new technologies, the real estate market has been disrupted. Here's what you need to do to get started.
You don’t need to buy a house, apply for a mortgage, or allocate all your savings to get a chance to make some passive income through renting. Through digital investing, you can allocate $1000 in a high-class commercial build and access all the benefits mentioned previously, without getting into the trouble of being a landlord or holding a monthly mortgage. Since the blockchain system enabled the investing platform to digitalize the entire property and break it into small pieces, the investor is no longer required to have a six-figure income to buy the security. A curious investor, for instance, just needs to create an account, answer a suitability questionnaire, upload some documents, and ta-da, they become a real estate investor, earning returns and passive income.
Once the curious investor has the door open to access the real estate wonderland, the next step is to navigate this new reality. The best approach is always to educate yourself. You need to learn the basics involved in digital investing. Who are the big players, what has the developer behind that project done previously, did they deliver it, what were the R.O.I, and so on. It doesn’t matter if you’re willing to invest $1000 or 10 x that. You need to understand the in’s and out’s of digital investing.
After spending time researching, you will have to look closely to understand the risk. Let’s get this straight, digital investing is a high-risk class of investment. This means you can access a great return and make a really good passive income, as well lose more than you’re willing to. High risk, high reward. Understand your profile as an investor, your goals, and that investing in a long-term run are part of the process. For sure, you don’t want to take unnecessary risks, although, with only a GIC investment, you’ll be unlikely to achieve your financial independence. So, you will need to dig down into the project you’re investing in, who is behind it, and where it is located to get a clear idea of whether it is worth the risk.
You’re aware of the risk implications, and now you want to mitigate them. A good way to buy a less risky digital real estate investment is through EMD (exempt market dealer) crowdfunding. An EMD will apply rigorous compliance and a due diligence process it performs on the deals and investor protection. Since EMD is held accountable for bad financial practices, it is in their best interest to provide the best deal for their investor. Also, it won’t change the high-risk classification, but for sure, it will add a layer of protection for the investor.
Whether you want to be a millionaire or achieve financial independence, real estate can be a lucrative option to diversify your portfolio. With a digital investing deal you can buy an investment that addresses your needs and matches your profile, and step forward toward your goal, but keep in mind that the financial situation is unique and do your research on it.
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