Why Real Estate Crowdfunding Is A Must For The Black Community!

designraCommunity Capital, Crowd Investing, Real Estate Crowdfunding

Real Estate Development

Introduction to the Crowd Economy

The wealth of Black people in America and the gap between other racial groups has been well documented, but that doesn’t mean Black folks don’t have any money to spend. Even though the racial wealth gap is actually widening, Black people still have tremendous economic buying power. What if we took some of that and we began to support each other’s business and real estate endeavors? Black consumers skew younger than the median American consumer and their spending is projected to grow significantly in the years ahead, according to data from Nielsen. 

The Black Community Is Well Positioned For Crowdfunding

Crowdfunding is a perfect fit for the crowdfunding model with the Nelson report finding Blacks to be 42 percent more likely than the rest of the country to respond to ads on mobile. Ninety-six percent of African Americans own a smartphone, and those aged 35+ surpass the total population in their age group by 2% for smartphone ownership. In fact, African Americans make up 23% of the total market for U.S. cellular sales, while only accounting for 14% of the overall population. We are online and driving that online economy, but we again are simply consumers. There is no return on investment for the dollars we are spending, only consumer satisfaction. Based on the access to digital marketplaces and the fact that we find ourselves in Black-only communities real estate crowdfunding is a perfect fit for our community.

Shifting Dollars  from Consumerism to Crowd-Investing

May 16th, 2016 the  SEC Rulings on crowdfunding intermediaries went into effect and today ordinary Americans are able to collaborate en masse to invest small individual amounts of funding to startups, small businesses, and real estate developments online through crowd investing, and become shareholders in the process. When people understand the power of local investing and crowdfunding and begin to pull from their bank savings, mutual fund accounts and begin investing 1 percent of their disposable income in order to put their money to work in their own communities. Crowdfunding will have the power to change how African-Americans from all income levels make decisions about where to put their money and how to spend that money. Crowdfunding will usher in a radical transformation forever redefining what it means to African-Americans to be a crowd investor in America by bringing local crowdfunding into the homes of inner-city community members in the Internet Age. If African-Americans embrace the power of crowdfunding then the most socially transformative part of crowdfunding will come from the power of local or community-based investing.

Introduction To Real Estate Crowdfunding

Real estate crowdfund investing is an idea whose time has come in the Black community. Real estate crowdfund investing allows non-accredited investors (regular folks) access to the types of returns that were once only available to the very rich. The first step is to become educated in real estate crowdfunding. Every successful investor knows that as their education increases so do their investment returns. Learn how to successfully build a portfolio of crowdfunded real estate investments.

Real Estate Crowdfunding Is An Agent For Change

Real estate crowdfunding will cause major disruptions in the residential, affordable housing, and commercial real estate markets.  Real estate crowdfunding will provide a pathway for  Black working class and professionals with middle-income jobs to understand how to invest in real estate while providing capital to Black  real estate developers in majority Black  neighborhoods. This will allow us to re-invest our dollars back into our communities, which brings up everyone’s property  value and builds intergenerational wealth. 

Key Takeaways 

Crowdfunding real estate is an idea whose time has come.  We have only seen and touched the tip of the crowdfunding iceberg.  I predict that just as Uber upended the taxi industry and Airbnb upset the lodging industry, we live in the Information Age.  Information is now democratized and is in the hands of the people.  When everyone has access to information and more importantly how to implement information then Wall Street wizards become obsolete.  The titans of Wall Street sitting on their thrones of financial wisdom can no longer make everyone purchase their mutual funds or place a trade using their investment platforms. For more information on how to use investment crowdfunding for real estate and to grab your FREE copy of Real Estate Crowdfunding Basics please visit Crowd-Max.com