When looking to potentially build your wealth, it is important to research and assess your options, as there are a number of various approaches to potentially diversifying your portfolio through investing. In this article, we explore the core fundamentals which should be considered when you are looking to invest in property.   Before we start it is always good to note, that investment comes with risk as well as the possibility of rewards and, where risk warnings are made available, it is always good to read them.  This article should also not be considered financial advice, just a simple exploratory piece.  

Crowdfunding

Before crowdfunding, finding investment opportunities in privately-held enterprises required knowing the right people, having access to various networks and possibly being considered to have a high-net-worth status. But over the years, crowdfunding platforms have become increasingly popular as a potential alternative route into the world of investment, making it more accessible and essentially democratising deal investment.   Investing in crowdfunding is a great way to potentially diversify your portfolio which could lead to wealth building. In the past, in order to fund a product or project through investment, an individual would be required to maintain a certain amount of capital in order to do so. Nowadays, it isn't just experienced property investors building wealth, but in fact anyone can start to potentially build wealth by investing in property for as little as £100 with  LEOcrowdfunding.   Crowdfunding is the new source of alternative finance, allowing investors to potentially begin to create a compound investment source and join other like-mined investors through LEOcrowdfunding’s community of investors. Crowdfunding, in our opinion, is a great way to invest in property and earn a passive income.  

The Involved Costs

As previously addressed, the main factors preventing individuals from potentially building wealth is usually the costs involved, and the lack of opportunities available to them. It is important to note however that this issue has been somewhat mitigated by the introduction of crowdfunding platforms.   The modern age of investing money through crowdfunding has become increasingly popular, resulting in costs being lowered for the individual, and making the entire investment process potentially more accessible.   At LEOcrowdfunding, all fees connected to a development project are charged to the Fundraiser, meaning investors will pay no recurring or one-off fees (other than those that may be charged by their own bank to facilitate movement of funds). There are no sign-up fees or annual charges to join LEOcrowdfunding and this ensures that investors can potentially choose what to invest in and know that there are no hidden costs involved.   With LEOcrowdfunding, you have the opportunity to invest in a crowdfunding project from as little as £100. This results in a larger number of individuals having the capacity to potentially expand their investment portfolio: a secondary benefit is that many of these investment opportunities also offer an educational element allowing the individual to educate themselves to a potentially gain a smarter financial and property mindset.  

Knowledge & Understanding

As with all investments, it is important to conduct prior research and due diligence on the opportunity. Knowing what you are investing in and, more importantly, who you are investing in, is just the first step in gaining a better understanding of the potential investment.   Thankfully, at LEOcrowdfunding one of our main modus operandi is education.  We educate our investors, through weekly broadcasts, our YouTube channel, seminars, training events, project webinars and so on, to ensure everyone has the ability to equip themselves with the knowledge and understanding needed to invest in property opportunities, making investing potentially accessible to everyone. It is our mission to help the masses Learn while they Earn how to Own assets in the property market by leveraging the power of the crowd. You can learn from our experienced team how to potentially earn from deals normally kept for sophisticated investors and institutions and also get access to exciting property investments. Whilst there are still many risks involved, we give you the tools you need to help you make informed decisions and to make your investment journey a little smoother. However, LEOcrowdfunding do not offer financial advice and for those seeking such advice, we would urge you to contact an FCA registered advisor and conduct your own research.  

Appropriateness

Much like other investment opportunities, it is vital to assess the level of appropriateness for each investor before they are permitted to invest in any crowdfunding project.   If you are looking to invest money in property to potentially build your wealth with LEOcrowdfunding, you will be required to take the ‘Appropriateness Test’, which is part of our ‘Investor Readiness’ process. This consists of a series of questions that you will be required to answer before you can invest in any of the projects currently live on our site.    We recommend reading through our website to familiarise yourself with any risks involved prior to undergoing the test in order to ascertain what your investment budget is. Our team also recommends reading the Risk Warning and FAQs in order to ensure that you understand all the questions correctly and help determine your risk appetite and affordability.    

Diversifying Your Portfolio

Within the world of investment, you will hear the phrase ‘diversify your portfolio’ often. Simply put, diversifying your portfolio means spreading your capital across multiple types of investment opportunities potentially reducing the risk as opposed to investing everything into one opportunity. Diversifying your portfolio to build wealth is considered an excellent strategic approach to investing money. This can become extremely important during times of market volatility and uncertainty.   Investing in crowdfunding projects is one way you can potentially diversify your portfolio and possibly save towards a future goal. With LEOcrowdfunding, you also have the opportunity to diversify any capital across a variety of projects from various fundraisers on the platform which further enhances your choices, giving you the opportunity to decide when to invest and in which opportunity.   Diversifying your portfolio could potentially lead to multiple streams of income and over time could combine to form a tangible return on investment. This will, of course, help you with your dream of retiring comfortably, as it could hopefully lead to you having passive income which in turn, could add to your overall retirement plan.  However, it should be noted, that as with all investments, your capital is at risk and returns are not guaranteed.  If you want to find out more about the risks, then please read our full risk warning for more information.   Our team here at LEOcrowdfunding are happy to answer any questions you may have from your research of our website. We host a range of crowdfunding projects with increasing frequency. If you would like to know more, feel free to connect with us through the contact form on our website or directly via [email protected].