All About Capitalizing on Crowdfunding

Here are the top ways that real estate owners and investors can take advantage of crowdfunding and current trends in the sector.

1. Target investors in a wider range. Crowdfunding funding in commercial real estate has opened up markets that traditionally have high barriers to entering wider electoral districts regarding the minimum investment required, geography, and accreditation status.

Some platforms provide opportunities for non-accredited investors to build and diversify their portfolios, or make an efficient process for foreign investors to own shares. There are many real estate investment platform available in the market.

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Furthermore, as millennials and potential investors of all ages move toward taking advantage of a more mobile, instant and on-demand lifestyle, online crowdfunding is a way to create a wider and more attractive network of those who may not have the time or perseverance to traditional real estate investment.

2. Take advantage of access to various platforms. Some investment models are available on various platforms in crowdfunding spaces, commercial real estate.

When considering online crowdfunding to increase equity or even build trust or an electronic real estate investment fund, it is important to understand that not all of these platforms are created equal; in fact, because of their differences, they can be used together.

The various options available, depending on what platform is used, often specialize in certain types of investments. Some available options include direct investment in equity, debt investment, eREIT, and funds.

3. Leverage upfront savings for potential investors. Although it is still too early to determine the extent to which this digital investment platform will bypass traditional intermediaries, in many cases online crowdfunding creates a more direct method of real estate investment and can lead to direct savings in upfront costs for investors.