Easy Explanation of Real Estate Crowdfunding

Before you start crowdfunding..

Wanted to learn about crowdfunding in real estate?

I’m sure you have learned in the past about the word crowdfunding. Sites such as Kickstarter, and Crowdfunder, for example. Real estate crowdfunding works like websites of this kind, raising capital from investors for different real estate investments.

What is Crowdfunding for Real Estate?
What should you know about crowdfunding?

Think of crowdfunding in real estate as an investment platform that will passively allow you to earn money. Simply put your money in your investment account and see your returns rise. Most platforms will give you monthly or quarterly receipts of your distributions. It isn’t hard at all and the mechanism is automated.

Origin of Crowdfunding Real Estate

Previously, crowdfunding in real estate was limited to only approved investors, and was hard to invest in. Most of the investment in real estate were deals with REIT’s or private equity that were limited to high-level investors. REIT’s are still available, but they do not produce comparable returns as would crowdfunding real estate since they are not traded every day.

Jobs ACT

The JOBS Act has made it easier for unaccredited investors like you and me to invest in crowdfunding immovable assets. What this law did was loosen the conditions for crowdfunding real estate that allowed anyone to invest up to 10 percent of their annual income in crowdfunding real estate. Speak about a change in the tide! For many Americans looking to invest in this kind of platform, this certainly changed the game.