The Crowdfunding Industry
Moris Beracha.- In the world of finance there is what we call crowdfunding, also known as mass financing, crowdinvesting , or subscription. Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, usually via Internet.
This dynamic is very popular in the real estate sector, where platforms are used to allow them to buy shares of properties and then sell them to other investors, providing a possible way for liquidity. Two examples of these platforms are Primarq and RealtyShares, which allows investors to own part of the residential homes in conjunction with the current resident and, equally, to participate in any appreciation of the value of the property. All paperwork is electronically signed through DocuSign and funds are transferred through Balanced, depending on the Crowdfunding company.
AKA Wall Street is a $ 110 million project that was carried out in November 2013 through a $ 25 million collective investment by foreign investors from six different countries.
Analysts have identified growth areas by the middle of this year, especially for investors, who have seen it as an initiative to diversify their portfolio. The truth is that, for Real Estate, crowdfunding has also managed to significantly alter traditional commercial real estate activity. The question is could it interfere with or rather increase opportunities for the real estate sector? What do you think?
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