Corfac News

According to a new blog from mipm worldblog, “Crowdfunding is changing the face of real estate investment as fund raising platforms have already collected over $100 million for properties across the U.S. in 2014.”

Crowdfunding is a trend in CRE that isn’t going away.

The loosening of the laws defining how funds and private companies solicit investors in 2013 through changes to the US based Jumpstart Our Businesses (JOBS Act) has allowed crowdfunding to soar as a viable alternative to banks, traditional partnerships and institutional cash. New portals emerge monthly seeking some of the market share for serving this new way of funding enterprises. The websites allow potential investors can learn about and invest in a any scale real estate project from micro deals to the revitalization of a whole neighborhood. See for example, CityShares LLC’s Neighborhood Investment Fund which will invest in a basket of residential and mixed use properties in Brooklyn’s up and coming Bedford-Stuyvesant neighborhood. Although the portion of the JOBS act defining how funds can be raised through “nonaccredited investors,” or those incomes less than $200k per year or net worth less than $1MM have yet to be set, dozens of portals have already launched crowdfunding opportunities with as low as a $100 minimum investment.

 

Read the blog here.