Crowdfunding has already proved its efficiency and ability to build funds for small businesses, various projects and campaigns. Recently, investors are now looking for ways on how to use crowdfunding for real estate to benefit them and their business.
According to the report by reuters.com, the current trend on crowdfunding campaigns-amount raised, speed of completion in certain projects which is sometimes just hours after the launch---suggests that crowdfunding is mature enough to be used for real estate funding.
The report also said that "Lifting a regulatory ban that bars ordinary investors from crowdfunding could greatly boost the volume of deals and capital raised for companies."
Nav Athwal, founder and chief executive of San Francisco-based RealtyShares, said "Crowdfunding for real estate, despite rapid growth, is still a speck in the investing ecosystem."
He also added "We are very eager to one day be able to open our platform to anybody that wants to put $1,000 or a couple hundred bucks into real estate, because let's face it, real estate is one of the best ways to build wealth and you shouldn't have to have a certain net worth to invest in real estate."
U.S. Office of Information and Regulatory Affairs website has posted an update that Title III of the Jumpstart Our Business Startups Act--- which will allow small investors to use crowdfunding for their businesses--- is expected to be implemented this month.
According to uk.news.yahoo.com, with the impending implementation of the said act, online investors are now racing to find better companies looking for capital to avoid or reduce investor risk. Athwal said that his company receives almost a thousand applications every month but approve only five percent of the applications.
Another real estate platform, PeerStreet, hopes "to tap existing loans from private money lenders." Brew Johnson, a co-founder of Peer Street said "Now you can take that same amount of money and create a diversified portfolio across many loans to reduce the risk."
Through the developments and changing trends in real estate market, investors are opening their doors to different means of acquiring investments and profit.
What can you say about the use of crowdfunding for real estate investment? Will you try it yourself? Share it in the comments!
