December 5, 2022

Real Estate Crowdfunding: Consistent and Stable

Real estate equity crowdfunding platform

Crowdfunding: Consistent, dependable returns are essential for long-term wealth growth.

We invest because… The answer is straightforward: to make money. Making money is ultimately what matters, regardless of whether you are saving for your retirement, your children’s school, or that dream car.

While some investors have made rapid money by investing in the appropriate opportunity at the right moment and selling when the time was perfect, if building an investment portfolio over time is your goal, calm and steady will win the day.

If you had sold at the peak of the market, the S&P 500 could have turned $10,000 into just over $12,500 during that time period, or $10,500 if you had held onto your investment until today. Stocks have a clear risk of volatility.

Lower Volatility: Lower Risk

Day trading is an exciting investing method that, unless you really know what you’re doing, can be highly risky.

It is a high volume, short-duration investment that can produce spectacular returns very rapidly. Regular investing and choosing less volatile assets will increase most investors’ chances of success.

During the good times, slow, steady investment assets will most certainly trail riskier investments, but they will still follow the upward trend.

Real estate crowdfunding is a terrific way to put money into dependable investments that have high yields and little volatility.

Crowdfunding further decreases your exposure to risk because it gives you the choice to invest much less of your money in assets that would otherwise be very expensive.

Crowdfunding for Real Estate: 2022

The graph below shows how $10,000 invested in one of Bricksave’s crowdfunded properties, 9317 Ward St. in Detroit, performed against a number of other well-known investment classes during the same time period.

  • There is economic turbulence, gold is a go-to investment, but when things are looking up, gold prices tend to fall.
  • S&P 500 is an index of the stock market that measures the performance of 500 significant businesses that are listed on American stock exchanges. One of the most often used equities indices is this one.
  • Government debt securities known as bonds have a fixed interest rate and a term of two to ten years. The risk of bonds issued by nations with sizable, stable economies is very low.

Key recent events, including as the Covid recovery, the cost-of-living issue, and the war in Ukraine, have produced extremely unsure economic conditions to which asset classes have responded in different ways:

The Demand Rate Of Crowdfunding For 2022 to 2030

  • The price of gold varied during the post-pandemic period (by as much as c. 8%), then began to rise as investors felt uneasy due to the beginnings of the Ukrainian crisis and rising worldwide inflation.
  • Stock markets experienced a very strong post-pandemic recovery (up to about 25% in the S&P), but they then quickly and negatively reacted as global inflation started to rise and after the war in Ukraine (up to about -20% in the S&P).

A $10,000 investment into a Bricksave property on January 21 would now be worth approximately $11,340 and has given investors stable, regular returns of about 9% annually paid on a monthly basis.

With some ups and downs along the way, $10,000 invested in gold in March 2019 would currently be worth roughly $9,250 before peaking at $10,500 on March 22.

Finally, this represents a meager $42 profit in 1.5 years from an investment of $10,000 and perfectly captures the trade-off between risk and reward.