Many people wrongfully assume that the returns are the same between direct investment and investing in Real Estate Investment Trusts(REITs). When comparing apples with apples, it becomes clear that the share price of the REIT is not directly proportional to asset value. It is more like traditional stock market investing.
CFund Goal offers direct property investment, where investors are not susceptible to the market shock of sentiment as share prices fluctuate. REIT’s are typically very large entities, which put them in a position where they can rarely participate in many of the smaller investments real estate crowdfunding opportunities offer, such as niche retail centers, small medical offices or multi-family buildings. Also, REIT investors usually have very limited information on the investments that comprise the fund or trust as they are a blended portfolio of investments. Investors can also see their returns significantly diluted by various management, broker, and/or incentive fees when investing through REITs.
Through real estate crowdfunding, there is greater level of control and power available to investors, allowing them to make informed decisions to build their portfolios with global real estate property. Transparency is easier to deliver through crowdfunding platforms, and the choice in the type and geographic location of the investment is far greater to investors than it would be through REITs.