Location and market risk: Location & Real Estate market plays a significant role in impacting the success of a project.
Development risk: Construction delays, cost overruns, or regulatory hurdles can pose risks to the completion of a project.
Tenant risk: For income-generating properties, tenant vacancies or non-payment of rent can affect the returns.
Legal & Regulatory Risks: Understanding the legal framework governing real estate crowdfunding in your jurisdiction. Other than that, evaluating the platform's investor protection measures is necessary to avoid mishandles.
Platform Due Diligence & Default risk: Investigating the track record, reputation, underwriting standards of the crowdfunding platform and assessing the platform's ability to withstand financial stress and fulfill its obligations to investors.
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Risks & Returns in Real Estate Crowdfunding: What investors must know
RandomThis article briefly talks about the risks and returns in real estate crowdfunding and the details investors must be aware of.
