Real estate investment is considered to be one of the most attractive investments. It can be an excellent way to add diversification to your portfolio due to its stability and low risk. On the flipside, real estate is usually associated with huge capital outlay. However, real estate crowdfinancing is an attractive alternative to a real estate investment trust (REIT) or direct ownership. With real estate crowd financing, you essentially have two options for investing: debt or equity investment When you invest in debt, you’re investing in a mortgage note secured by a rental property. As the loan is paid back, you receive a share of the interest. This type of investment is considered lower risk than equity, but the returns will depend on the interest rate being charged on the mortgage. On the other hand, it’s preferable to direct ownership because you’re not responsible for managing the property. Investing in equity means you receive an ownership stake in the property. In this scenario, returns are realized as a percentage of the rental income the property generates. If the property is sold, you would also receive a portion of any gains from the sale. Real estate crowdfinancing offers to non-accredited investors an attractive low entry point in terms of capital investment as compared to the amounts required to gain access to private real estate deals.