CrowdFunding in Today’s Economy

CrowdFunding is the updated internet version, of an activity that has been around, for more than 500 years. How it works: Collect funds from multiple people, the crowd, to support a project, or an effort, like publishing books, helping deserving people. Buying buildings or starting a company. This is what I have personally been doing for over 40 years.

Know everything about: the sellers, their motivations and their options, aspirations, fears, limitations, wants and needs, deadlines, etc… You need to ask a question and listen carefully to what they are saying. Listen with the intent to understand and do not interrupt them.

The aggressive marketing by the CrowdFunding platforms and the investors’ interest in CrowdFunding, debt and equity for real estate, has led to the explosion of the numbers of new platforms Today, there over one hundred Real Estate CrowdFunding platforms for investments and finances.

Eighteen months ago, there were ten real estate CrowdFunding platforms, six months ago, there were 50; today, there are over 100. Real estate CrowdFunding platforms, are launching at a torrid pace. This frenzy is destined to accelerate, with at least 15 additional platforms in pre-launch, and many more likely planned.

Despite this fiery growth, real estate CrowdFunding still generates only a tiny fraction of the capital raised for real estate debt and equity, in the United States.

Thus, there appears to be ample room, for existing platforms, to amplify their production, by regimenting internal systems, attracting institutional capital, and building brands. In addition, there is plenty of room, for new platforms to emerge, particularly sites serving niche markets.

“I think you will see some very big, and well-known finance and real estate companies jumping into the CrowdFunding arena”.
“So not only will there be more volume, across the board, but at the upper end of the marketplace is where you will see some of the leading firms in the country announce that they have a new CrowdFunding offering.”