Sky Is the Limit: Exponential Growth of Real Estate Crowdfunding

by David Drake

Investors have always regarded real estate as a safe and less volatile investment than other forms of investment such as equities, and since 2013, the rapid rise of the crowdfunding industry is changing the rules of the game. Investors are now beginning to see real estate crowdfunding as an excellent tool to stabilize and diversify their investment portfolios. Moreover, many investors interested in real estate investment had to previously invest in real estate companies and their entire range of activities whether these activities were acceptable or not. Now, crowdfunding allows them to invest directly in specific properties or projects and achieve diversification and manage risk by spreading their investment over several projects.

Who Can Invest and How Much?

As of now, participation is restricted to accredited investors (defined as investors with an annual income in excess of $200,000 or a net worth of $1 million excluding a primary residence). However, the SEC is working on regulations to expand crowdfunding to non-accredited investors as well, and these are expected to be in place by the end of 2014 or early 2015. The deals available vary according to the platform: Fundrise LLC accepts amounts as low as $100 with the average investment being under $10,000… Read more at: http://timesrealtynews.com/featured/sky-is-the-limit-exponential-growth-of-real-estate-crowdfunding/