This particular tactic is referred to as a diversification exchange.

Crowd funding offers the potential for greater diversification, and so can spread risk over multiple properties.

Some people park cash in real estate for nominal returns for diversification or other reasons. 

Of course most Oregonians don't think the way I do LOL.Oregon is the number one in migration state right now.. and its exploding with the over flow.. every time CA runs up in values we get the equity transfers and nice boost to the local economy here.I think one thing that does not get talked about is the Ethnic diversification of the Bay Area..

(What percent of your portfolio are you looking to allocate, and what kind of diversification do you need  across the different investment types such as equity versus debt,  residential versus commercial, etc.) 

Hi @Andrew Luong glad to hear of your success and now market diversification.

Bakersfield is pretty business friendly (compared to the rest of CA) and there's a lot of diversification going on in terms of industry there in the past 10 years.

Your strategy seems quite judicious and responsible, though small investors with single digit properties ( and aspiring big though) don't have the option of incredible diversification in different asset class and instruments.

It is a diversification move, not a way for YOU to get money to invest in real estate personally.There is a lot of good info here on BP on the topic.

Diversification & resilience.