10 Steps to Master Real Estate Investing with an Investment Tracking Platform

Real estate investing has been a popular choice among investors for decades.

Historically, investing in real estate has been seen as a reliable way to build wealth, generate passive income, and hedge against inflation.

However, investing in real estate requires significant capital, knowledge, and time commitment.

This is where real estate investment tracking platforms come into play.

A real estate investment tracking platform is a digital tool that allows investors to invest in real estate without owning physical property.

These platforms allow investors to access real estate investment opportunities with relatively lower capital requirements, transparent information, and passive involvement in the management of the property.

In this article, we will discuss how to invest in real estate through a real estate investment tracking platform.

Experience Prime: A 30-Day Free Trial to Elevate Your Lifestyle. Unlock a world of convenience with a free 30-day trial of Prime! Enjoy free delivery, award-winning TV, exclusive deals, and more. Only $14.99/month after trial. Cancel anytime. Start your free 30-day trial now! (We’re affiliates, so we may earn a commission from qualifying purchases.)

What is a real estate investment tracking platform?

A real estate investment tracking platform is a digital tool that allows investors to invest in real estate without owning physical property.

These platforms typically work by pooling capital from multiple investors to invest in real estate projects.

The projects can range from rental properties, to commercial buildings, or even development projects.

Investors can invest in these platforms by purchasing shares in the investment vehicle.

The shares are usually referred to as units or shares, and they represent a portion of the ownership of the investment vehicle.

The value of the shares is determined by the performance of the underlying real estate assets.

How does a real estate investment tracking platform work?

Real estate investment tracking platforms work by connecting investors with real estate investment opportunities.

These platforms typically offer two types of investment vehicles: Real Estate Investment Trusts (REITs) and Real Estate Syndications.

Real Estate Investment Trusts (REITs)

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate.

REITs are traded on major stock exchanges, just like other public stocks.

By investing in a REIT, investors can gain exposure to a diversified portfolio of real estate assets, including commercial properties, residential properties, and other types of real estate.

REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends.

This means that REITs can be an attractive option for investors who are seeking regular income streams.

90,000 US doctors receive our weekly emails

Gain exclusive access to real estate investing tips, the latest news updates, expert advice, and personalized consultations. Subscribe now!

Real Estate Syndications

A Real Estate Syndication is a partnership between multiple investors who pool their resources to purchase a single property.

Syndications are typically used for larger real estate deals that require more capital than any single investor can provide.

Investors in syndication can participate in the ownership of the property and receive a share of the profits generated by the property.

The profits are typically distributed to investors in the form of quarterly or annual distributions.

Real estate investment tracking platforms typically offer both REITs and syndications as investment vehicles.

Investors can choose which type of investment they want to participate in based on their investment objectives and risk tolerance.

How to invest in real estate through a real estate investment tracking platform?

Investing in real estate through a real estate investment tracking platform is relatively straightforward. Here are the steps to follow:

Step 1: Choose a real estate investment tracking platform

There are many real estate investment tracking platforms available in the market.

Before investing, you should research and compare different platforms to find the one that best suits your investment objectives and risk tolerance.

Some popular real estate investment tracking platforms include Fundrise, Roofstock, EquityMultiple, and PeerStreet.

Step 2: Open an account

Once you have chosen a real estate investment tracking platform, you need to open an account.

The account opening process typically involves providing personal and financial information, including your name, address, Social Security number, and income.

Step 3: Choose an investment

After opening an account, you can browse the platform’s investment opportunities and choose the one that best fits your investment objectives and risk

tolerance. You can review the details of the investment, including the investment minimum, expected returns, and investment term.

It’s important to do your due diligence before investing in any opportunity.

This can include reviewing the property details, financial projections, and any risks associated with the investment.

Step 4: Fund your account

Once you have chosen an investment, you need to fund your account. The platform will typically provide several funding options, including bank transfers and credit/debit cards.

It’s important to note that real estate investment tracking platforms typically have investment minimums.

These minimums can vary depending on the platform and the investment opportunity.

Step 5: Monitor your investment

After investing in a real estate opportunity through a real estate investment tracking platform, you can monitor your investment through the platform’s dashboard.

The dashboard typically provides information on your investment performance, including the value of your investment, distributions received, and any updates on the underlying property.

It’s important to note that real estate investments are not liquid, meaning that they cannot be easily sold like stocks or bonds.

Most real estate investment tracking platforms provide an estimated holding period for each investment, which can range from a few months to several years.

Advantages of investing in real estate through a real estate investment tracking platform

Investing in real estate through a real estate investment tracking platform has several advantages, including:

Diversification:

Real estate investment tracking platforms offer investors access to a diversified portfolio of real estate assets.

This can help reduce investment risk by spreading your investment across different properties and geographies.

Lower capital requirements:

Real estate investment tracking platforms typically have lower investment minimums than traditional real estate investments.

This allows investors with lower capital to participate in real estate investments.

Passive involvement:

Real estate investment tracking platforms allow investors to invest in real estate without the hassle of property management.

The platform takes care of property management and maintenance, allowing investors to sit back and collect their returns.

Transparency:

Real estate investment tracking platforms provide investors with transparent information about the underlying properties and their performance.

This allows investors to make informed investment decisions.

Potential for attractive returns:

Real estate investments have the potential to generate attractive returns, including capital appreciation and regular income streams.

Conclusion

Real estate investment tracking platforms offer investors a convenient and accessible way to invest in real estate without owning physical property.

These platforms provide access to a diversified portfolio of real estate assets, lower capital requirements, and passive involvement in property management.

Before investing in a real estate investment tracking platform, it’s important to research and compare different platforms to find the one that best suits your investment objectives and risk tolerance.

It’s also important to do your due diligence on each investment opportunity and monitor your investment regularly.

Real estate investments can generate attractive returns, but they are not without risks.

It’s important to carefully evaluate each investment opportunity and understand the risks associated with it.

With the right research and due diligence, real estate investment tracking platforms can be a valuable addition to any investment portfolio.

Emoji Feedback Form

What do you think?

❤️ 0
👍🏼 0
🤯 0
😡 0
🤮 0
😂 0
😭 0
🙄 0
Table of Contents
Skip to content