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?