CrowdStreet, a real estate crowdfunding platform, has reportedly managed to raise $800,000 in seed funding through the method for commercial real estate.
The Portland, Ore-based company, announced Tuesday that it would use the received amount to expand its investor base and enhance its portfolio.
"Today marks an exciting milestone for the company as we enter a new phase of growth with the financial backing and an experienced leadership team to support our expansion," Tore Steen, CEO of CrowdStreet, said in a statement.
CrowdStreet allows accredited investors to choose from an array of real estate developments and projects enabling them to invest with smaller amounts. One needs to get a $10,000 worth of membership on the website to be able to invest on the properties.
According to Venture Beat, CrowdStreet amassed $1.6 million in four weeks for Mainstreet Bloomington - a medical resort project spanning an area of 66,197 square feet - this past July. There are many other projects available on the website including office developments and senior housing projects as well.
"CrowdStreet's mission is to provide the most trusted and reliable real estate investment marketplace designed to simplify transactions between accredited investors and institutional-quality real estate developers and operators," CEO Steen added.
Real estate crowdfunding has become a raging trend in real estate. With more than 50 platforms of property crowdfunding websites and more to come up, experts sa this could be the future of real estate funding.
The advantage of this method is that people can now avoid the time consuming process of becoming a property manager to reap the benefits of the real estate market. Also, larger projects can take off faster as capital will be easier to pool, according to Detroit News.
"Real estate crowdfunding won't make you the next Donald Trump. But if you like the idea of getting a play on a modestly sized commercial or multifamily property and you're an accredited investor, this may be the game for you," Vanessa Grout, president of CMC Real Estate, wrote in a feature.
