Have you ever thought of a crowd investment as an investment? You do not know what that is?
Invest with only 500, – Euro? We explain the opportunities, the risks and the possibilities. As a beginner in the market of investment forms and investments, you often have to bring a certain share capital in order to generate actual profits. For some time, however, crowdfunding has become a serious alternative to investment themes. Especially in real estate there are very exciting possibilities.
Basically, a crowd investment is a fairly new and innovative form of investment in which many so-called micro investors with smaller investment amounts join together to form a large swarm. This also gives retail investors the opportunity to make promising investments that are otherwise only available to the rich, large companies and institutional investors.
According to Wikipedia, the definition is: “Crowdinvesting is a form of financing in which a large number of people (micro investors, investors, investors) typically invest small amounts of money via the Internet to start-ups, in most cases via silent partnerships. Profit participation rights or shareholder loans. The incentive for the micro investor is to hope for high returns. However, the risk is also high in crowd investing?. As with any equity investment, the micro-investor may lose his stake if the company is unsuccessful. “(Source: Wikipedia article on Crowdinvesting )
What are the options?
There are basically different ways to participate in a crowd investment. Crowdinvesting platforms that offer a whole range of investment opportunities and compare them to those who are interested are best suited.
A very exciting example is the crowd investment in real estate. So you can invest in real estate without having to buy a whole house. Already from 500, – € Investitons are possible. For some time now, there have been real estate funds or real estate stocks with which you can also indirectly invest in real estate projects. The approach as a flock of many small amounts to collect, however, is new and very interesting. Here, project developers or property developers present themselves with their construction projects and try to win private and small investors for it. Spiegel and Manager Magazin have also reported that start-ups are boosting crowdinvesting and how retail investors are benefiting from the real estate boom . Often, however, the selection of projects is low.
If you do not dare to invest your savings with large investments in capital, you can not go wrong with our crowdinvesting recommendations. There you can invest already with 500, – and partly less volume in very promising projects. A really good chance to achieve good interest rates against the background of a continuing low interest rate phase.
We recommend the providers Exporo or Rendity, which were also highlighted in the mirror and Manager Magazine.
What are the risks of crowd investing?
Crowdinvesting is still a young form of investment, but that’s why it’s particularly exciting. The investment form offers little collateral, but is very strongly yield-oriented. The opportunity for promising projects and high profits is given even without millions of investment or years of debt. They always invest only with smaller amounts. Thus, a theoretical loss would be easier to get over than with an investment of 100,000 or more euros.
You also need to know that this is mostly a so-called subordinated loan. Here you are treated with your small Crowdinvestment only “subordinate” after the banks, if it should actually come to a total loss. So you should study the information material very exactly. But: We still think it’s exciting and innovative. A close look can be worthwhile!