Shall I invest in crowdfunding?

[Santiago Ramiro Girado]

Hey everyone, would you recommend investing in crowdfunding or do you know anyone who did so?

[Ian Ippolito]

Originally posted by @Santiago Ramiro Girado:

Hey everyone, would you recommend investing in crowdfunding or do you know anyone who did so?

I live off of the income from my passive investments which have quite a bit of crowdfunding/syndications in them. Crowdfunding is essentially the same as old-school syndications but they are made available on the Internet.

If you are an aggressive investor then you will find hundreds of opportunities a month there.

On the other hand if you are very conservative then it will be more difficult because some of the most experienced sponsors do not need to use crowdfunding at this stage of the cycle (i.e. they have developed an enthusiastic investor base over the years who will quickly overfund their deals). Occasionally you can find these types of sponsors on crowdfunding but they are more rare. If you're looking for this then I would also recommend networking for deal flow and/or joining an investor club.

If you're not sure where you fall then it could be useful to start looking at deals (without purchasing), learning how to do due diligence and taking your time to figure it out.