Top 7 Real Estate Crowdfunding
Sites For Investors

Learn about the opportunities for real estate investors, the different crowdfunding investment models, and what I view as the Top 7 Real Estate Crowdfunding Sites for Investors.

Get the FREE Guide Now

Passive Real Estate Investing

Real estate can be a great way to earn passive income but it’s up to investors to do their own diligence.

Real estate crowdfunding provides investors with access to institutional-quality private real estate on a deal-by-deal basis that previously was only available through direct personal relationships. There are many bad operators and many bad deals out there seeking funding.

This series of posts will ensure you have the tools to do the proper diligence on deals and sponsors, understand the deal specifics, legal intricacies, and tax implications.

Benefits of Private Real Estate Deals

  1. Cash Flow & Appreciation: Real estate typically offers a current income component that provides a stable cash flow while providing for potential upside from appreciation.
  2. Tax Advantages: Real estate offers tax advantages, such as deduction of interest and depreciation expenses which can defer taxable income as well as increase the amount of income taxed at capital gains rates (lower than ordinary rates).
  3. Hedge Against Inflation: In times of outsized inflation, real estate has historically been one of the best performing asset classes as rents and values generally keep pace with inflation (unlike a bond investment which has fixed payments).
  4. Diversification: Real estate is an inefficient market and investments are highly relationship-driven and local in nature, which allows for large disparities in both information and knowledge. Value-add strategies can increase cash flow even in down markets.

Real Estate Tax Implications

As crowdfunding for real estate continues to increase in popularity, certain tax questions arise.

Understanding real estate tax rules can be difficult, but it is imperative to real estate investors.  Investors have to consider a wide range of issues, including deal structures, passive activity rules and state tax implications.  Prior to investing in any deal, you should make sure to discuss the tax issues with your CPA or tax professional. One thing is for sure – investing in real estate deals will make your tax situation a little more complex.  However, considering the other advantages to many deals it may certainly be worthwhile.

The following post specifies the important tax questions that real estate investors face.  By no means are the issues easy to understand, but at least they can provide a framework for investors to discuss with their tax advisors.

  1. 10 Tax Questions for Real Estate Investors

Ready to become a student of the real estate game?

Sign up to receive exclusive content not shared on the blog.






Legal Intricacies of Passive Real Estate Investments

Coming Soon…

Top Crowdfunding Platforms for Investors

Top Resources for Investors

Conclusions

Passive real estate investments can be a great way to diversify your investment portfolio while also getting current cash flow and benefiting from future appreciation and tax advantages unique to direct real estate investments. While real estate can be a great way to earn passive income and achieve long-term wealth, it’s up to investors to do the diligence on deals and sponsors and understand the legal intricacies and  tax implications.

If you have any questions or want to learn more about accessing private institutional-quality real estate deals, email me at joe [at] asotreg [dot] com.

Disclaimer: I am not a Financial Advisor. Everything shared above is from my perspective as a real estate investor and the collective feedback from experts in real estate finance, law, and accounting.