Field Guide to Real Estate Crowdfunding
(Updated May 2017)
Crowdfunding is a relatively new idea in real estate financing—soliciting funding online. Find out the basics of crowdfunding, the impact on real estate, consider the pros and cons and discover crowdfunding platforms. (A. Siudzinski, Senior Information Specialist)
E - EBSCO articles available for NAR members only. Password can be found on the EBSCO Access Information page.
Crowdfunding real estate isn’t just for millionaires anymore, Could it be for you?, (Yes! Magazine, May 4, 2017).
Real estate crowdfunding. What’s the buzz?, (Tierra Grande, Apr. 1, 2017). E
How crowdfunding is democratizing real estate investing, (Marketplace, Mar. 30, 2017).
Real estate crowdfunding trends for 2017, (Realty Times, Mar. 22, 2017).
What is crowdfunding?, (My Fund Now, March 25, 2016).
Investor Bulletin: Crowdfunding for Investors, (U.S. Securities and Exchange Commission, Feb. 16, 2016).
Rules of Investment, (Crain’s Detroit Business, Jan. 11, 2016). E
The Definitive Guide to Real Estate Crowdfunding, (Property Metrics, July 17, 2015).
Crowdfunding: a new frontier for investors, (U.S. News & World Report, May 6, 2015).
Real Estate and Crowdfunding
How Crowdfunding has Changed Real Estate Investing, (Inc., March 2, 2016).
5 Important Questions About Real Estate Crowdfunding, (Entrepreneur, Jan. 29, 2016).
Where Will Real Estate Crowdfunding Go in 2016?, (Seeking Alpha, Jan. 28, 2016).
Real Estate Crowdfunding: The Continued Evolution of the Internet’s Hottest Trend, (Places, Jan. 14, 2016).
Real Estate to Benefit From Crowdfunding Boost, (REALTOR® Magazine Daily Real Estate News, Nov. 11, 2015).
Crowdfunding of U.S. Real Estate Deals Gains Momentum, (Reuters, Oct. 26, 2015).
First Real Estate Crowdfunded Real Estate Project Paying Off, (CNBC, May 11, 2015).
Real Estate Crowdfunding Platforms
RealCrowd: Our mission is to transform the real estate industry by giving investors the same direct and free access to commercial real estate that institutions, pension funds & university endowments have always had. Why? Because we believe commercial real estate offers benefits to investors that no other investment class can. The average individual deal-size for an investment opportunity on RealCrowd is just under $30 million while funds have ranged in size from $15 million to $150 million. The offerings found on RealCrowd will come in form of the highest income producing assets: office, retail, multi-family and industrial. Some real estate companies even package their investments in the form of a fund to allow investors to more easily diversify.
Crowdstreet: CrowdStreet is a software and services company disrupting the commercial real estate industry by enabling innovative real estate operators and developers to efficiently engage in online capital formation, communicate with investors, distribute investment documents and centralize ongoing investor relations.
Fundrise: Fundrise is an online investment platform for commercial real estate, often times referred to as a crowdfunding platform or investment marketplace. Fundrise gives investors the ability to: Browse investment offerings based on investment preferences including location, asset type, risk and return profile; Transact entirely online, including digital legal documentation, funds transfer, and ownership recordation; Manage and track investments easily through an online portfolio; receive automated distributions and/or interest payments, and regular financial reporting.
iFunding: iFunding is a real estate investing marketplace that connects thousands of accredited retail investors and institutions with real estate operators seeking financing. We are ‘revolutionizing real estate investing’ through ease of access to high-quality, commercial projects, using our secure web platform, detailed reporting process, and responsive client service team.
Patch of Land: Patch of Land is crowdfunding real estate through its P2RE (peer-to-peer) online marketplace offering various typologies of secured real estate debt on assets backed by first position liens and personal guarantees. We match investors and lenders seeking alternative fixed income opportunities to borrowers seeking alternative sources of financing for their real estate investment needs.
Prodigy Network: Prodigy gives you the opportunity to invest as little as $10,000 in commercial real estate investments that were previously only available to a handful of institutions and ultra-high net worth individuals.
RealtyMogul: RealtyMogul.com is an online marketplace for real estate investing. We are often referred to as a crowdfunding platform, marketplace lender, or peer-to-peer lender. Whatever term you choose to use, we are here to connect investors who want to invest in real estate with real estate companies that need real estate capital – either debt or equity - it’s that simple.
RealtyShares: RealtyShares is an online investment platform that brings together investors, borrowers, and sponsors. Accredited or institutional investors can invest in pre-identified commercial real estate investment opportunities with as little as $5,000. Legal document signatures and fund transfers can all be handled securely through the RealtyShares platform, so that investors can complete the entire transaction through the website.
Pros and Cons
Real estate crowdfunding is riskier than you think, (Seeking Alpha, Apr. 11, 2017).
Could real estate crowdfunding help millennials retire sooner?, (Realty Biz, Apr. 4, 2017).
The next frontier: crowdfunding reaches new heights, (Commercial Property Executive, Sept. 23, 2016).
Crowdfunding fills construction lending gap left by banks, (National Real Estate Investor, May 31, 2016).
4 Crowdfunding Benefits All Real Estate Investors Should Consider, (Bigger Pockets, April 13, 2016).
Crowdfunding Commercial Real Estate: Panacea Or Path to Disaster?, (Partridge Snow & Hahn LLC, March 2016).
The Pros and Cons of Real Estate cCowdfunding, (QuickLiquidity, Dec. 11, 2015).
How Good Is Too Good? The Underwriting Risks of Crowdfunded Real Estate Deals, (Crowdfund Insider, Aug. 5, 2015).
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
Crowdfunding: A Guide to Raising Capital on the Internet (Kindle, OverDrive Read, EPUB eBook, PDF eBook)
Crowdfunding: The Corporate Era (OverDrive Read, EPUB ebook)
The Crowdfunding Handbook (Kindle, OverDrive Read, EPUB eBook, PDF eBook)
Crowdfunding for Beginners (PDF eBook)
The Everything Guide to Crowdfunding (Kindle, OverDrive Read, EPUB eBook)
Equity Crowdfunding for Investors (OverDrive Read, EPUB eBook, PDF eBook)
Field Guides & More
These field guides and other resources in the Virtual Library may also be of interest:
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