Why Crowdfunding Could Change the Way New Housing Projects Get Built

CFB News Wire, Open Source Capital, LLC ask builders why not engage investors and homebuyers to be a part of the project? With crowdfunding, builders can provide an early stage to showcase their projects to potential investors and homebuyers. Prospects can go online to review the design, floor plans, square footage and amenities. Houses can be presold and “options” can be added prior to final house plans being submitted for construction. Accredited Investors can also be buyers or just third party investors. Cost efficiencies could be a win-win for all.

gI_85116_gold key
Opportunistic private investors often purchase homes at pre-construction prices and then resell or rent them out. In condo markets such as Miami, builders are funding their projects with staged deposits from buyers. This could put the homebuyer at the end of the food chain if the project happens to goes south. Crowdfunding on the other hand, puts the investor in a more secured position. Open Source Capital has developed a product called dequity. Dequity provides accredited crowdfunding Investors an opportunity to purchase a part ownership in the lenders mortgage. A dequity mortgage holder receives a fixed interest rate plus a share in the profits.
Kyle Meyer, Managing Director of Open Source Capital, LLC noted “I’ve never seen an opportunity as good as dequity. Unlike corporate bonds or standard mortgages, dequity could pay off a small fortune – as long as one is willing to take the risk associate with construction lending. Construction lending risk is high, so you’ve got to be able to do your homework,”
For builders, Open Source Capital’s crowdfunding platform does five things:
Provides a stage to showcase their project
Allows pre-construction buyers and other investors an opportunity to be “a part of the project”
Raises funds to help build the project
Reduces the risk of spec building
Shortens the sales cycle

Tags: , ,


BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

MarketWatchWhy a crowdfunding site is giving out $10000 scholarshipsMarketWatchCrowdfunding site GoFundMe announced Thursday that it will award $10,000 to 10 students with pages on their site that fundraise for education. The award is part of a contest the site held throughout Septemb [...]

MottoYou'll Never Believe How Couples Are Paying for IVFMottoMore and more couples are turning to crowdfunding to fund costly in vitro fertilization (IVF) treatments, Bloomberg reports. The cost of IVF treatments, a popular choice for women struggling with infertility issues, ave [...]

WestwordProgressive-Rock Band Marillion Pioneered CrowdfundingWestwordThat was the beginning of crowdfunding for us — and for every band, really.” When it came time for the recording and release of the followup to the 1999 marillion.com record, Kelly and the band realized that one of [...]

Huffington PostReal Estate Crowdfunding's Pathway of ChangeHuffington Post“Crowdfunding is just the Internet,” stated Attorney Mark Roderick as he opened last month's RealCap Chicago. RealCap is an annual conference that joins crowdfunding leaders and innovators to propel th [...]

CoinTelegraphCrowdfunding vs. ICO: Experts Question Legitimacy and Guarantees ...CoinTelegraphThe simplistic idea behind crowdfunding a non-existent software or system has become a trend in the cryptocurrency industry, but most Bitcoin experts are highly ...and more » [...]

Crowdfund Expansion - Seedrs Moves Into Europe With EU Financial Services PassportForbes“We want break down national barriers and geographic barriers,” says Jeff Lyn, co-founder and CEO of UK crowdfunding platform, Seedrs. “Why limit investment to within fifty miles of your house?” On [...]

ForbesVenture Crowdfunding Revisited: An Update with NIN VenturesForbesI am about to head off to attend the Global Crowfunding Convention (GCC) 6 in Las Vegas. It will be my fourth time attending. The crowdfunding industry has grown from $16 billion in 2014 to $34 billion in 2015, and [...]

Crowdfund InsiderTitle III Crowdfunding Might Not Be What Many ExpectedCrowdfund InsiderI have been immersed in the equity crowdfunding industry since late 2015 and have tried to collect as many different perspectives on the industry from as many experts as possible. And while it is h [...]

PC MagazineHow to Crowdfund Without Going Broke and Irking Your BackersPC MagazineTo say crowdfunding is on the rise would be an understatement. Crowdfunding—raising small amounts of money from a large number of people in order to launch a product, service, or project of some sort—is [...]

CFB Finance

Press Release

CrowdFund Beat News

Hello @CrowdFundBeat's 17296 followers - thank you so much for following! Wishing you all a happy Friday! >> bit.ly/_want_this_free

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |