Crowdfunding grows as real-estate investment option

By Brock Willis, The roller-coaster ride of residential real-estate markets in the last few years have a lot of investors thinking about the value of real estate, including commercial real estate. Not only does this sector have appealing growth potential, but the emergence of crowdfunding platforms in this space is making it possible for individual investors to start thinking about the possibility of adding commercial real estate to their investment portfolios.

 

Real Estate CrowdFunding: why it’s a big deal

Until recently, the only opportunity for smaller investors to get in on the action has been through Real Estate Investment Trusts (REITS). But crowdfunding is inserting itself into this space as a potential game-changer, breaking down barriers in the commercial real estate sector by making large-scale, quality real estate opportunities available to investors for as little as $5,000.

This is how it works. Developers will post their investment opportunities on a crowdfunding platform, providing detailed documentation for vetting before being made available to potential investors online. Investors then browse pre-curated investments, legally formalize their transactions online, and can check in whenever they want to see how their investments are performing.

Leveraging a crowdfunding platform increases efficiencies for investors as well as developers who now have a new way to finance projects. It’s a win-win for all parties.

And there are compelling reasons for non-accredited investors to be interested in this sector.

Commercial real estate applications are currently available only to accredited investors, which are defined by various countries’ securities laws, specifying the types of higher risk investments they are allowed to participate in. But regulatory changes in the U.S. are expected to provide developers with access to new capital and investment opportunities for individual investors through equity fundraising. This change will have ripple effects around the globe.

All of this bodes well — both for closet mini real estate moguls and industry players. Stay tuned!

Source http://blogs.calgaryherald.com/2014/08/21/a-win-win-for-all-crowdfunding-in-the-real-estate-investment-market/

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 [...]

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 [...]

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 [...]

Aberdeen Evening ExpressFierce Beer smash crowdfunding target in bid to open first bar in AberdeenAberdeen Evening ExpressAn Aberdeen brewery has hailed the “incredible” response to a crowdfunding campaign after it smashed the original £60,000 target in just 24 hours. The Evening Expr [...]

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 [...]

Japan TodayZoo starts crowdfunding campaign to protect endangered birdJapan TodayA Toyama zoo has launched a crowdfunding campaign to collect funds to protect an endangered Japanese bird designated as one the nation's special natural treasures. To supplement funding from the stat [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

Born2InvestHere are the latest updates on the crowdfunding industryBorn2InvestWhen pressed for the reason behind the move, the company pointed to their charter which states that Kickstarter is committed to the arts and creative projects. Another provision in the charter shows that the [...]

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 |