The best way to finance the purchase of a tertiary tier retail property is through crowdfunding. This type of real estate investment is growing in popularity, and there are several platforms that offer investors access to quality deals. In this blog post, we will discuss the different crowdfunding strategies that are best suited for acquiring tertiary tier retail properties. We will also provide tips on how to choose the right platform for your needs.
The first crowdfunding strategy that we will discuss is equity-based crowdfunding. In this type of arrangement, investors provide capital in exchange for a stake in the property. This is an ideal option for those who are looking to generate long-term income from their investment. The downside of equity-based crowdfunding is that it can be difficult to exit the investment if you need to sell the property before it has appreciated in value.
Another popular crowdfunding strategy is debt-based crowdfunding. In this case, investors lend money to the borrower at a fixed interest rate. The advantage of this approach is that it allows you to earn regular income from your investment without having to worry about appreciation. The downside is that you will not benefit from any upside potential if the property appreciates in value.
If you are looking for a more hands-off approach to investing in tertiary tier retail properties, consider using a real estate investment trust (REIT). A REIT is a company that owns and operates income-producing real estate. Investors can purchase shares in a REIT, which gives them an ownership stake in the underlying property portfolio. The advantage of investing in a REIT is that it offers diversification and professional management. The downside is that you will not have direct control over the property.
When choosing a crowdfunding platform, it is important to consider the fees charged by the platform. Some platforms charge higher fees than others, so be sure to compare the costs before making your final decision.