Jordan Kavana, founder and CEO of Transcendent Investment Management and a member of the CNBC-YPO Chief Executive Network, Tuesday, 9 Sep 2014 | 11:00 AM ETInvestors have always liked real estate for the opportunity to own real property and invest in something familiar that generates returns. Will the crowdfunding model for real estate prove as popular? I think it should, for three key reasons: increased accessibility, greater transparency and significantly fewer geographical limitations.
Real estate crowdfunding allows the average Joe to access markets previously available only to executives and institutional investors. Investors can research real estate investment opportunities from home in little time and at minimal cost and connect with developers online—something the developers like because it saves them the time and money previously spent finding and pitching to potential investors.
When developers seek investors, the first step is supplying them with all the relevant information about what their money will accomplish and how it will do so, from day one. The kind of information a potential investor would previously get by scheduling one or two meetings with a developer is now instantly available online. This increased transparency establishes a level of trust among investors and developers that was harder to achieve in the past.
Location, location, location? No more