Real Estate Is Paving The Way For Equity Crowdfunding

CrowdFundBeat News Desk,
In the world of commercial property investments, $1.5 million could be viewed as a rounding error. According to an article published by Forbes, the owners of the Hard Rock Hotel Palm Springs said they sold 15 percent stake for that sum to a group of 85 people. This deal is noteworthy not because of the amount raised but because of how it was raised: Generally Solicited via an online funding portal (Also known as “Crowdfunding” )

resize-225x175 (1)

Real estate does not seem like an obvious play for crowdfunding because of how expensive it is. Only a few crowdfunding projects have raised more than $10 million dollars which is not considering a large amount for corporate real estate. However, according to Forbes the idea of crowdfunding in real estate is catching on. There are now several firms seeking to become the go to portal of real estate investments, including the Beverly Hills based site Realty Mogul, who oversaw the campaign that raised $1.5 million for that Palm Springs hotel. Another is Fundrise, a DC based platform who is noted for developing the new World Trade Center. In June, the Wall Street Journal reported that these and other real estate crowdfunding firms have raised $135 million in debt and equity for developers.

The question of why real estate investors are interested in crowdfunding has a simple answer: the thrill. People like being able to invest in a single property and not a grouping of properties. Investing in real estate is also a common investors relatively. Investors feel comfortable when investing in real estate because there is alto of available information to use in evaluating the property or structure that is being funded. Landlords and developers are turning to crowdfunding because banks and other financing sources have turned them down.

Thus just proving the importance of crowdfunding in this field.

So where is this heading? According to the Forbes article this is a hopeful first step and is not going to displace large-scale funding from institutions. This form of raising capital looks like it will only work for smaller projects because often times properties will carry significant debt and the sponsor can default. Overall this is a positive step for crowdfunding as a whole.

Tags: , , , ,

HEADLINE NEWS

Marketplace.orgCrowdfunding for your life - MarketplaceMarketplace.org"When I took that phone call, and I learned that this was just going to completely uproot my whole life, I'd say I spent maybe 10 seconds or so only freaking out ...and more » [...]

Omaha World-HeraldCrowdfunding offers easier way to ask for college cashOmaha World-HeraldMore 529 plans, the accounts that give families a way to put away cash for college, are adding crowdfunding-like tools that make it easier for savers to ask family and friends to contribute to a [...]

CNBCWeSearchr: crowdfunding platform becoming home for alt-right causesCNBCIn less than two months, "Daily Stormer vs. SPLC Legal Defense Fund" raised more than $155000 on the WeSearchr platform.and more » [...]

ForbesThis $130 Million Fund Is Leading The Way In Real Estate CrowdfundingForbesWhen people think of crowdfunding, the first word that jumps to mind is Kickstarter. But crowdfunding is not limited to supporting the next card game or independent film. Crowdfunding is becoming a viable [...]

TIMEA Crowdfunding Effort Launches to Commemorate Khadija Saye, Artist Killed in London InfernoHyperallergicOn Saturday, friends and supporters of the artist Khadija Saye — who died in the devastating Grenfell Tower fire in west London last week — launched a crowdfunding campaign to c [...]

CBS NewsNow you can crowdfund a 529 college savings plan - CBS NewsCBS NewsIt's getting easier to have friends and family add their contributions to these accounts for college savings.and more » [...]

Business InsiderCrowdfunding for medical expenses - Business InsiderBusiness InsiderAlmost half of the money raised on crowdfunding sites like GoFundMe and YouCaring is going toward medical expenses. Medical campaigns make up $930 ...Americans Losing Health Insurance Turn To Crowdfund [...]

PCGamesNAshes of Creation is having a special summer crowdfunding campaignPCGamesNFollowing its massively successful Kickstarter that raised over $3.2 million, Ashes of Creation developer Intrepid Studios are extending their crowdfunding efforts with a summer campaign. Designed for th [...]

Forbes"Make Yourself Available" - An Audio Entrepreneur's Tips For Successful CrowdfundingForbesIt takes a brave individual to launch Bluetooth speakers and headphones into a crowded audio market. Take a stroll around your local consumer electronics stores and you' [...]

Lompoc RecordTrikke Tech consolidates operations in Buellton, launches ...Lompoc RecordTrikke Tech Inc. has consolidated all its operations at a new location in Buellton and launched a crowdfunding campaign to help the company expand and ...and more » [...]

CFB Finance

Syml
Lst Val
+/- Val
+/- %

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 |