The Rise of Real Estate Crowdfunding
Since the passage of the Jumpstart Our Business Startups (JOBS) Act in 2012, real estate crowdfunding has surged in popularity, and this year it is estimated grow 2.5 times to reach $2.57 billion, according to industry research firm Massolution.
Crowdfunding has opened the doors to real estate opportunities that were previously marketed solely to ultra-high-net worth individuals or institutions, like endowments and pension funds. Rather than needing millions of dollars to invest upfront, crowdfunding platforms allow accredited investors to participate in deals where minimum required investments can hover around $5,000 or $10,000.
I recently wrote a piece for the June issue of Real Assets Adviser magazine about real estate crowdfunding, and I then sat down with Real Assets Adviser Editor Mike Consol to discuss the article. You can listen in to this discussion below, as Mike and I talk about what is driving the growth of real estate crowdfunding, how I expect the industry to evolve in the next five to ten years, and which types of deals are proving to be the most popular.
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