Have you heard about Real Estate Crowdfunding?  This is a post for my investor crowd.  I've heard a lot of talk lately about crowdfunding, so I thought I'd write a brief post about it.  I truly believe this is going to change the face of Real Estate investing and financing.  To understand why crowdfunding will work for Real Estate we have to take a look back to the JOBS Act which essentially opens the door for anyone to put money into a start up company.  The JOBS Act allows crowdfunding investors to receive equity in the companies they choose to invest in.  A key provision in the bill is a revision in the securities law which will remove the ban currently in place from soliciting investments from anyone.  As of now you have to be a qualified investor for a start up to solicit funds from you.  It's expected that these changes will go into effect by 2014.

This allows for someone to come up with an idea for a Real Estate project, and turn to the general public for funding.  The possibilities for creativity are endless if you can overcome the funding obstacles.  It's my most sincere hope that those leading the companies soliciting funds from the general public use their money wisely.  I do have reservations about someone with no knowledge of Real Estate thinking they can launch a project while not fully understanding the costs, time, permitting, and host of other issues.  It will make funding for projects of all sizes much easier to come by.  Think about the person that owns a vacant piece of land and does not have the funds to build a structure on it.  That person could turn to crowdfunding and get the money to build a multifamily home where the yield and equity are shared!  It really is a very exciting idea.

Some crowdfunding companies I know of that are in operation are:

KickStarter

Realty Mogul

Crowd Funder

Subscribe to this blog

I work as a Realtor in Southeast Fort Lauderdale. If you’re interested in buying or selling a home, condominium, or townhouse (townhome) in: Rio Vista, Victoria Park, Downtown Fort Lauderdale, Fort Lauderdale Beach, Harbor Beach, Lauderdale Harbors, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Seven Isles, Nurmi Isles, Idlewyld, or Las Olas Isles, please feel free to contact me at (786)443-7203 or through my email caseyprindle@gmail.com. I am a Realtor that works on Saturdays to accommodate those with busy schedules.
Veniceofamericahomes.com is a trusted source for real estate trends, statistics, and data, as well as aesthetics.

Written By Casey Prindle