As we all known, Crowdfunding is now evolving and there are many new trends among investors these days and it’s been particularly well received in the real estate sector which will be the next frontier in crowdfunding that will change the shape of crowdfunding in which people can also earn money by investing in a property.
In the old days, where entrepreneurs wanted to raise funds they had to either go to a bank or have to contact a VC or personal investor with sufficient cash to spare. But now in this crowdfunding era, it has completely changed the approach and has brought benefits not only for investors but also for real estate companies and for the real estate market as a whole.
You can view this chart real estate is booming in market since 2014
With this evolving trends in crowdfunding, real estate crowdfunding platforms play a major role in this digital world and has been booming in an industry.With an increase in crowdfunding portals, they can gain access to deal flow without the time, energy and resources required to manage the properties.In addition, instead of spending hours performing their own due diligence on each real estate investment opportunity, the crowdfunding websites provide pre-screened lists of investment opportunities.
Real Estate Crowdfunding Is Made Possible By Two Things:
- The growth and evolution of technology in crowdfunding industry which allowed suppliers and users of capital to connect in the electronic marketplace.
- The new law of Title -III of Jobs Act which has been passed by SEC and it’s a good news for non-accredited investors who are waiting to be legalized, which permits broad public solicitation of investment opportunities and which will be the booming market for real estate crowdfunding.
How Real Estate Crowdfunding Works?
- Project creator(Sponsor in the case of real estate crowdfunding) creates the project to asks for funds to support his or her goal by offering equity or debt investment opportunities to individual investors.
- The sponsor can create the project with popular crowdfunding sites or can go for some white label crowdfunding solutions like our popular real estate crowdfunding software which can create a customize real estate crowdfunding platform for their project.
- Investors will invest various amounts toward a project as little as $5,000 to participate.
Easiest Way To Launch Real Estate Crowdfunding Website:
Planning to start your real estate crowdfunding website? With our real estate crowdfunding software, you can create and launch your own high-quality real estate crowdfunding website similar to popular real estate crowdfunding sites like iFunding, Fundrise, Realty Mogul, and Crowdstreet.Our software will give you the best opportunity to amplify your business growth in the fundraising industry.
Finally, this innovative technology that allowed the industry to scale-up quickly and government regulations that enabled it, beginning with JOBS ACT of 2012, are fueling the growth of crowdfunding in real estate sector.