Crowdfunding Grows as Source of Real Estate Investment

By Dan Weil, Crowdfunding is the hot new thing for startups trying to garner cash, and now people are using it to invest in real estate too.   Crowdfunding consists of a group of people financing a venture through the Internet.

When it comes to real estate, investors can use dozens of crowdfunding websites to put money in areas including single-family homes, real estate development projects and distressed mortgages, The Wall Street Journal reports. Investments can begin as small as $100.

Crowdfunding platforms have generated $135 million of investments in real estate so far, The Journal estimates.

The Jumpstart Our Business Startups Act of 2012 sparked much of the crowdfunding activity in real estate by loosening fundraising rules for small companies.

gI_85116_gold key
Crowdnetic, a crowdfunding research firm, tells The Journal that real estate is far and away the biggest crowdfunding sector it follows.

Real estate is “the hottest sector,” Richard Swart, who heads a crowdfunding research program at the University of California, Berkeley, tells the paper. “It’s getting the most interest and the most activity.”

However, some are concerned because many investors don’t know much about real estate and there might be unscrupulous landlords and developers using crowdfunding because traditional financing sources have turned them down, The Journal notes.

In fact, the paper points out, “at least three websites have folded or temporarily suspended operations as founders rethink their business strategies.”

Meanwhile, the Federal Reserve’s continuing low interest-rate policy is attracting investors to real estate investment trusts (REITs). Investors put $5.6 billion into REIT exchange-traded funds this year through June 3, according to Bloomberg.

“We live in a world where investors are thirsty for yield, and since REITs are required to dividend out most of their profits, they’re a good yield vehicle,” Jim Sullivan, managing director at Green Street Advisors, tells the news service.

Read Latest Breaking News from Newsmax.com http://www.moneynews.com/Economy/crowdfunding-real-estate-investment/2014/06/12/id/576705#ixzz34akGQbgG
Urgent: Should Obamacare Be Repealed? Vote Here Now!

 

Tags: ,

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise ...NPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it woul [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

EntrepreneurWhy Some Small Business Owners Are Turning to Crowdfunding to Save Their CompanyEntrepreneurMany owners of beloved local businesses, especially in pricier cities, have been forced to swallow their pride and appeal to their customers in times of crisis -- a process streamli [...]

CoinDeskKickstarter ICO? Don't Count On It Says Crowdfunding Leader ...CoinDeskThe company most widely associated with crowdfunding, Brooklyn-based Kickstarter, has no plans to get into the initial coin offering (ICO) business. Coming in response to the news yesterday that compet [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

CryptoCoinsNewsCrowdfunding Giant Indiegogo Looks to Make ICOs MainstreamCryptoCoinsNewsCrowdfunding platform Indiegogo has a plan to help initial coin offerings (ICOs) break into the mainstream, even as the U.S. Securities and Exchange Commission (SEC) is ramping up its oversight of [...]

WRAL Tech WireBack story: How, why investor Mark Easley brought crowdfunding platform Localstake to NCWRAL Tech WireRESEARCH TRIANGLE PARK – Earlier this week, WRAL TechWire broke the news that Triangle investor and crowdfunding advocate Mark Easley was bringing Localstake, a crowdfun [...]

Crowdfunding via Customers: Is This The New Startup Capital?Customer ThinkWith more and more companies in a variety of sectors developing new crowdfunding campaigns, it makes sense to ask whether crowdfunding is likely to replace startup capital in the near future. Crowdfunding is qui [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

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 |