Revolutionizing Real Estate Through Crowdfunding

Picture Courtesy of Intelligent Speculator

Picture Courtesy of Intelligent Speculator

The applications for crowdfunding are endless. Up until this point, we’ve seen sundry creative, technological and even bio-medical projects thrive, but one industry slow to join-in has been real estate. Unlike these other areas, it’s hard for entrepreneurs in real estate to get their foot in the door financially, as there are less programs, grants and basic funding options available. But this is precisely why crowdfunding real estate works, and now it’s beginning to catch on.

Crowdfunding real estate enables the public to invest in what used to be an exclusive market. Instead of several large contributions made from deep-pocketed investors and private-equity firms, hundreds of locals can pitch-in for ownership of a new property, splitting its rent and annual income. In a way, crowdfunding real estate transfers the power back to those in the immediate area. So, for example, those who want a coffee shop in the neighbourhood will see to it that it happens.

crowdfunding real estate

Thanks to the lift on the solicitation ban, real estate enthusiasts now have an easier time finding and promoting properties. With portals such as FundriseProperty PeersRealty MogulProdigy Network and Primarq, this process has never been easier. Primarq, specifically, is an interesting portal to talk about, as it uses equity-share financing for residential purposes. Most other portals deal strictly with commercial properties. Portals like Primarq give homeowners the opportunity to purchase homes otherwise outside of their price-range. By co-owning a house with an investor, the shares of the home may be divided, but both parties have still benefitted in some way.

crowdfunding real estate

The concept of crowdfunding real estate is subject to debate. For one, as Fundrise co-founder Ben Millier suggests, “The public will help you build your real estate, but actually over time you realize that the public is an incredible partner… [When] you democratize an investment in real estate, not only do you get capital, you actually get a social power that wasn’t possible before.” On the flip side of things, some specialists are concerned of scams, especially for projects not yet under construction.

Crowfunding real estate opens the doors to a lot of opportunities, but also to a lot of hazards. It will be interesting to see how these portals fare as the final SEC judgement nears. What are your thoughts?

Tags: ,

HEADLINE NEWS

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

Global Crowdfunding Market 2017-2021PR Newswire (press release)Global Crowdfunding Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The rep [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

NewshubWoman born without vagina crowdfunding surgeryNewshubThe family of a woman born without a vagina has started a crowdfunding campaign to receive reconstructive surgery. Kaylee Moats, from Arizona, lives with Mayer Rokitansky Küster Hauser syndrome (MRKH) meaning she has no cervi [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

Technical.ly BaltimoreArbit took to crowdfunding to seek out investorsTechnical.ly BaltimoreThe Baltimore-based social polling company is seeking to raise a maximum of $425,000 through equity crowdfunding, a funding instrument that was first officially made available last year with re [...]

ForbesMoney Makes Small Businesses Go Round: Ensuring Access For AllForbesIn 2008, a new form of financing — rewards-based crowdfunding — premiered. With money raised on crowdfunding platforms like Indiegogo and Kickstarter, startups and companies with a new product idea connect direc [...]

Baltimore Business JournalCrowdfunding initiative for women-owned startups comes to MarylandBaltimore Business JournaliFundWomen, a crowdfunding platform dedicated to helping women-led businesses find support, is launching in Maryland in partnership with the incubator Betamore, PNC Ba [...]

CNETKickstarter alternatives: Choosing a crowdfunding platformCNETCrowdfunding, a compelling way to raise funds and generate buzz for a new entrepreneurial endeavor, is almost synonymous with Kickstarter. While Kickstarter is a major platform, several other crowdfunding sites are wort [...]

SiliconBeatPayPal, crowdfunding sites cut off white supremacists, hate groupsSiliconBeatPayPal and some crowdfunding sites have joined other tech companies in cutting off hate groups after the deadly white supremacist rally in Charlottesville, Virginia, over the weekend. The Southern [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

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 |