Industry Articles - Kenwood Management Company

Why Experienced Investors Choose Stability

Written by Kenwood Management Team | Apr 17, 2025 12:45:00 PM

Over the past decade, real estate crowdfunding has surged in popularity. Promising easy access to real estate investments with minimal effort, these platforms have attracted new investors looking to diversify their portfolios.

However, when it comes to building long-term wealth, experienced investors often take a different path. Rather than chasing speculative returns, they prioritize stability, transparency, and control. These are qualities that are often missing in real estate crowdfunding platforms.

At Kenwood Management, we help investors build lasting wealth through direct commercial real estate investments. With decades of experience in the Baltimore and Washington, D.C. markets, we offer opportunities grounded in real-world performance, not speculation.

Is Real Estate Crowdfunding a Good Investment?

At first glance, real estate crowdfunding has a lot going for it. These platforms have changed the way people can enter the real estate market by offering:

  • Lower capital requirements: Many platforms allow investors to get started with just a few thousand dollars.
  • Diverse opportunities: You can invest in a variety of property types, from residential buildings to commercial spaces, across multiple regions.
  • Passive income potential: The promise of earning without hands-on involvement is attractive to those with limited time or experience.

For beginners, the idea of spreading risk and gaining access to previously inaccessible deals can be compelling. Beneath the surface, there are risks that seasoned investors know to watch out for.

The Cons of Real Estate Crowdfunding

Even though the returns may look promising, experienced investors understand that not all real estate investments are created equal. Crowdfunding platforms come with several significant drawbacks.

Lack of Liquidity

One of the biggest challenges with real estate crowdfunding is the lack of liquidity. Unlike publicly traded stocks or real estate investment trusts (REITs), crowdfunding investments typically come with multi-year lockup periods. Once your funds are committed to a project, they are inaccessible until the investment cycle ends—often five to seven years or more. 

There’s usually no secondary market available to sell your shares. This means that if your financial situation changes, you may be stuck with no easy way to recover your capital.

Limited Control Over Investments

With crowdfunding, you are a passive participant. You’re investing in deals managed by operators you likely don’t know, and you have no influence over how the property is managed, improved, or leased. This means you have to trust that the platform and the sponsors are making decisions in your best interest. 

If they don’t perform (or if their strategy changes), you have no recourse. Experienced investors prefer having a voice in key decisions that affect their returns and risk exposure.

Market and Platform Risks

Real estate crowdfunding introduces a layer of risk that traditional real estate investment doesn’t: platform risk. You’re relying not just on the underlying property but also on the financial health and competence of the crowdfunding platform itself. If the platform goes out of business, mismanages investor funds, or fails to vet deals properly, you could suffer losses through no fault of your own. 

In addition, many crowdfunding projects are especially vulnerable to market downturns. When challenges arise, there’s often little opportunity for active intervention or restructuring, putting your capital at greater risk.

Why Experienced Investors Choose Stability Over Real Estate Crowdfunding

When you invest directly in commercial properties (especially with a seasoned partner), you gain more than just financial returns. You gain control, insight, and a stronger foundation for long-term growth.

  • Control over decision-making: Direct investors have a say in how properties are managed, leased, and improved.
  • Full transparency: You know exactly how your properties are performing with clear financial reporting and regular updates.
  • Strategic planning: You can align investments with your financial goals, risk tolerance, and timeline.

Instead of hoping for short-term gains, experienced investors focus on building wealth through well-managed assets that generate consistent cash flow and appreciate over time.

How Kenwood Management Provides Stability and Long-Term Value

For over 25 years, Kenwood has offered investors access to well-managed commercial properties in strong, stable markets. Our proven real estate investing model focuses on long-term performance, risk mitigation, and personalized service.

A Proven Track Record in Commercial Real Estate

Kenwood owns and manages over 1.4 million square feet of office and industrial properties in the Baltimore and D.C. area. Our team brings decades of local market experience and operational expertise to every investment.

We don’t chase speculative deals. Instead, we identify stable, well-located assets with reliable tenants and long-term upside. Our approach has delivered consistent performance, even through economic cycles.

Expert Asset and Tenant Management

Kenwood takes a hands-on approach to property and tenant management. From leasing and maintenance to budgeting and planning, we manage each asset like it's our own.

We build strong relationships with tenants, which leads to higher retention, steady income, and fewer vacancies. Our team also actively manages expenses and capital improvements to maximize returns for our investors.

Long-Term Wealth and Consistent Returns

Real estate is a long game. We focus on generating sustainable income and appreciation through active management, strategic reinvestment, and conservative underwriting. Our investors benefit from:

  • Steady cash flow distributions
  • Tax advantages from depreciation and cost segregation
  • Growth in equity over time

This model has created lasting wealth for our investors.

Personalized Investment Approach

We understand that every investor has unique goals. That’s why we offer tailored strategies based on your risk profile, income needs, and long-term objectives.

Whether you’re looking for stable income, portfolio diversification, or a legacy asset to pass down, Kenwood can help you build a plan that fits.

Who Should Invest with Kenwood Management?

Kenwood is the right fit for investors who are serious about long-term value and stability. If any of the following describes you, our approach could be a match:

  • Accredited investors seeking dependable, income-generating real estate investment opportunities.
  • Risk-aware investors who prefer transparent, professionally managed assets.
  • Long-term thinkers who value steady growth over speculation.
  • Portfolio diversifiers looking for alternatives to volatile public markets.

Our investors want more than passive exposure. They want a trusted partner who manages investments with care, strategy, and integrity.

Final Thoughts: Is Real Estate Crowdfunding a Good Investment?

Real estate crowdfunding has opened the door for many first-time investors. However, for those with experience, the appeal often fades when compared to the risks and lack of control.

At Kenwood, we offer a different path—one built on decades of real estate expertise, strong fundamentals, and hands-on management. Our goal is to help investors build sustainable wealth with assets they can trust.

If you're considering your next move in investments in real estate, take the time to compare the options. Look beyond promises and platforms and focus on what truly drives long-term success: stability, transparency, and experience.

Invest with Kenwood for Stable Returns and Long-Term Value

Real estate crowdfunding may seem like an easy entry point into the market, but for experienced investors, the trade-offs often outweigh the potential rewards. Limited control, illiquidity, and platform risk make it a less reliable path to building long-term wealth.

If you’re looking for consistent returns, long-term value, and a trusted investment partner, we’re here to help.

Before you invest, make sure you’re asking the right questions.  Download Kenwood Management’s free checklist: The Real Estate Investor’s Guide to Smarter Alternatives to Crowdfunding. This resource will help you evaluate real estate opportunities and avoid common mistakes so you can invest with confidence.