Introduction
Real estate crowdfunding is a new and innovative use of Regulation Crowdfunding that allows non-accredited investors to invest in real estate deals on a FINRA and SEC certified portal. Real estate crowdfunding uses the crowd-funding model to raise funds for real estate deals all across the nation and locally at the same time.
Portfolio Diversification
Unlike REITs, real estate crowdfunding presents an opportunity for non-accredited investors to invest in a wide variety of properties without having to deal with the mortgage brokers, real estate agents and contractors. In stark contrast to the traditional model of real estate investing.
The Platform
Real estate crowdfunding platform manages the daily tasks to make sure that all of the day-to-day operations are completed. This allows you to become a passive real estate investor with a diverse portfolio of projects that could range from debt to equity deals. Instead of the normal fix and flip model for small investors.
An Innovative and New Investment Model
In the good ole days investing in real estate depended mostly on business connections and being in the right circles. It was all about who you know and how much money you had to invest in these secret deals. The Securities Act of 1933, made it impossible for non-accredited investors to invest in private securities. Since the deals could not publicly solicited this was like a secret society of investors that was closed to the public.
High Minimums
The minimum threshold to invest in these deals was usually in the six-figure range. The high amount needed to invest coupled with a ban on investment solicitation made it impossible for any average investors to play in this exclusive club of real estate investors. This was a closed market for developers, the pool of investors that had unrestricted access to all of the best private deals.
Crowdfunding is the Future of Real Estate Investing
When the Jumpstart Our Business Startups Act of 2012 was passed everything changed. On May 16, 1016 Regulation Crowdfunding (Reg CF) became the law of the land and now non-accredited investors were able to enter the real estate investment arena as developers and investors. This is going to be a game changer. Today small scale developers have the unrestricted ability to directly market to accredited investors on a registered portal. Real estate developers have adopted the crowdfunding model to find new investors who are eager to enter the market. Potential investors can literally choose where to invest their money from their smartphones and tablets.
Real Estate Investing For The Masses
You can now gain access to the real estate market without having exclusive business connections. Additionally, by participating in crowdfunded real estate ventures, investors now have a voice in the development process and can be more involved than ever. With so many more options available and all at different price points, investors can now choose where they want to invest their money.
Key Takeaway
Real Estate Crowdfunding has brought many of the investment benefits that wealthy investors and developers have had for decades that have allowed them to amass fortunes through real estate investing. Today non-accredited investors can enjoy the benefits of passive real estate investing with diversification across a Regulation Crowdfunding platform with high-level deal flow. Real Estate Crowdfunding offers low minimums that will allow the masses to invest in projects across the nation with other investors. Developers can take advantage of Real Estate Crowdfunding by using the platform to raise larger sums of capital and no more fix and flip one property at a time. If you want more information on Real Estate Crowdfunding book your 10-minute FREE call with an experienced crowdfunding coach atÂ