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Quality real estate crowdfunding platforms today and investment analytics: We aim to monitor real estate crowdfunding platforms in order to make sure data is provided in a correct way and not changed backwards. Thus, creating additional trust for the investors to rely on one or another platform. One of our objectives is also to provide an aggregated project data for investors, who could compare different projects, asses their risks and other KPIs accordingly. At the same time, we are aiming to educated and expand real estate crowdfunding community in order to bring more investors and market this capital raising channel compared to legacy alternatives. Read extra info at real estate crowdfunding platforms tracker.
Before choosing a real estate crowdfunding platform, always check what licenses specific platforms are holding and what is the scope of those licenses. Most of the platforms disclose their licenses, but not all of the licenses are covering their crowdfunding activities (e.g. there are platforms operating under payment institution license, but this does not cover crowdfunding activities). Before that, each country applied different regulations and licenses, therefore up until now all the platforms operating in EU are operating under different regulatory regimes. The above mentioned Regulation has a transition period, which allows for countries to adopt it in the local legislation as well as for the real estate crowdfunding platforms to get a license under new regulation.
On the flip side, real estate crowdfunding invites investors to pool their money using online financial technology (fintech) or crowdfunding sites to fund real estate investments, with an eye toward making an eventual one-time or ongoing profit. A few hundred dollars is often all it takes to get started with these internet-powered investment solutions. Monies are commonly paid into Real Estate Investment Trusts (REITs) and similar financial vehicles, which effectively serve as holding companies that own and operate various real estate investments. These properties can take the form of houses, apartments, condos, retail space, malls, hotels, offices and more. Unlike many publicly traded REITs though, crowdfunded investments are typically privately held. These REITs also tend to pay regular earnings our to investors in the form of dividends.
More than 100,000 investors throughout the U.S. have invested on the CrowdStreet platform. Its innovative approach gives direct access to a vetted range of institutional-quality real estate investments. Accredited investors can pick a single property or invest in a fund. Founded in 2014 and headquartered in Portland, Oregon, the company has published more than 540 commercial real estate investment offerings. Crowdfunding is a way to fund a project or venture by pooling small investments from a large group of investors. The idea is that when enough people make small investments, it’s possible to raise substantial amounts of money quickly. One of the most well-known crowdfunding sites is GoFundMe, a platform used to raise money for everything from creative projects to medical bills.
Supporting documentation and description of the crowdfunded project: Real estate crowdfunding platforms together with real estate project developers wants to provide as much information on the project as possible. This allows for potential investors to familiarize with the projects, understand development level, risk level, budget and other parameters. Different platforms provide different level of description. Some just provide written explanation on the key parameters of the project, such as location, duration, project developer and etc. Whereas other provide valuation reports, planning documents, land ownership documents and etc. Expert investors analyzed the documents, estimates the risk and makes their decision based on this. As supporting documentation and description is not a KPI based on which investment risk can be assessed, this depends on time and knowledge invested in reading this.
YieldStreet: If you’re looking to invest in a variety of different privately structured deals which are backed by assets that help protect your principal (which may provide some small measure of assurance to prospective investors in the event of default), YieldStreet can help. Largely targeted at accredited investors, it offers a way to crowdfund real estate financing vehicles as opposed to owning a part of residential or commercial property holdings. Nonaccredited investors wishing to invest a minimum of $1,000 may find passive income-generating opportunities available as well though. If you’re just looking to dip your toes into real estate crowdfunding, the site also offers investment opportunities that can range in length from as little as 6 months to as long as 5 years.
What Is Real Estate Crowdfunding? Crowdfunding is a method for raising money for businesses and an easier way to access such ventures for investors. Crowdfunding utilizes the Internet and social media outlets, such as Facebook, Twitter, and LinkedIn, to reach an audience of potential investors. The idea behind crowdfunding is that many people are willing to invest a small amount, and when they do, large sums of money can be raised quite quickly. Crowdfunding offers companies access to capital that they might never be able to raise. Crowdfunding offers investors the ability to become shareholders in a company or in a real estate property. Find additional information at crowdbulls.com.