How Crowdfunding Has Changed Real Estate Investing | Inc.com


Though in it’s relative infancy, real estate crowdfunding was poised to reach over $2.5 billion in 2015 to fund a wide range of property developments. But why does this matter to you? These are not major Wall Street investment firms, there are crowdfunding platforms where ordinary people can invest just a few thousand dollars to get a piece of the action. The story itself is nothing new. Crowdfunding has exploded in multiple industries all over the country, and real estate is no exception. This article is going to go into how crowdfunding has managed to alter how people are investing in real estate. How it Used to Work Investing in private real estate was always about who you knew. If you look into the Securities Act of 1933 the securities of private investments, including real estate, couldn’t be marketed in the public arena. That mean the ordinary man in the street had no chance of getting involved unless they knew the right people. Clearly, most people didn’t have these sorts of connections. Nevertheless, that’s all changed as a result of crowdfunding. Many of the barriers have been removed, including the ability to market investing opportunities. Small businesses had the chance to raise capital publicly, for the first time in 80 years. The Money Issue The old way involved investing in real estate through knowing the right people. Once an investor had decided on an investment they had to come up with the money. It was common to see six-figure checks written out. Obviously, this is out of reach of most people. With the ability to market investments, companies from all over the country can contribute small amounts of money. This enables you to get involved with as little as a few thousand dollars. And what could be better than that?

Source: How Crowdfunding Has Changed Real Estate Investing | Inc.com

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Author: Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.

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