Real Estate Crowdfunding vs. Traditional Investing: What's the Difference?

March 31, 2025
Investor Insights

For decades, real estate investing was reserved for those with deep pockets, industry connections, and plenty of time to manage properties. But times have changed. With the rise of technology and platforms like Collab, real estate crowdfunding has emerged as a powerful alternative to the traditional model.

Traditional Real Estate Investing: The Old Way

Traditionally, investing in real estate meant buying an entire property. That often required a substantial down payment, securing financing, handling property management, and dealing with tenants—all while carrying the full weight of financial risk.

This method can deliver strong returns, but it also comes with high barriers to entry, low diversification, and a lot of responsibility.

Real Estate Crowdfunding: The New Way

With crowdfunding, individuals pool funds together to collectively invest in professionally managed properties. Each person owns a fractional share, receives a proportional return, and avoids the burden of day-to-day management.

With Collab, this model becomes even more meaningful—because it's not just about pooling capital, it's about building a community around shared financial goals and real estate ownership.

Key Differences at a Glance:

Why Collab is Different

While many crowdfunding platforms focus solely on transactions, Collab is community-driven. Our investors aren't just contributors—they're co-creators. Many help shape the properties, join our Brunch/Lunch calls, provide feedback, and share their stories with future investors.

Collab's student housing properties maintain high occupancy and strong returns, and we offer opportunities to get started with as little as $100—making real estate more inclusive, flexible, and scalable.

Qian Wang

Qian Wang has over 22 years of experience investing in residential properties in China and the US. Between 2015 and 2019, he partnered with leading private equity and real estate funds to build and manage a real estate portfolio with approximately 1,500 apartments, and over 130,000 square feet of creative office space valued at $3.1 billion. His partners in these ventures includes Warburg Pincus, the Government of Singapore Investment Corporation (“GIC”), the investment management business of Prudential Financial, Inc.(“PGIM”), and InfraRed Capital Partners. Over the years, Mr. Wang has led over 50 transactions in Shanghai and Beijing in China, as well as in California and New Jersey in the United States. Mr. Wang received two master’s degrees in architecture and real estate from the Massachusetts Institute of Technology (MIT), and has recently completed the Owner/President Management program at Harvard Business School. In 2021, he established the Wang Real Estate Innovation Fund at Massachusetts Institute of Technology.

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