Individual investors are increasingly using real estate crowdfunding to enter the market. It does, however, carry a unique set of risks, just like any investment. The lack of liquidity is one of the main risks of crowdfunding for real estate. If you require immediate access to your money, it could be challenging to sell your investment in a real estate project, unlike stocks. The risk of the project failing or the developer defaulting on the financing is also there, both of which could result in a loss of investment. Before making an investment, it's critical for investors to conduct in-depth due diligence on the project and platform. They should also diversify their portfolios to reduce these risks.
Risks of investing in real estate crowdfunding.
- Thread starter Johnson2468
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