From raising funds for charities to launching new businesses and ideas, crowdfunding has become a household term over the last few years. With the emergence of websites such as Kick Starter and Indie GoGo – budding entrepreneurs, inventors and aspiring philanthropists have found new and exciting avenues for funding their ventures via the power of the web and social media. Various products such as the video game console “Ouya” or the Pebble E-Paper Smartwatch as well as efforts to give now famous Bus Monitor Karen Klein a vacation have all found their starts within the crowdfunding platform.
Now, investors can take part in this cultural phenomenon as it catches on in the real estate industry. Sites such as RealtyMogul.com and fundrise.com offer the opportunity for individuals to buy shares of actual real estate for amounts as low as $100. The offerings include shares in luxury hotels, apartment complexes, commercial building and more – with hopeful investors eager to realize profits once the project is funded and up off the ground.
As exciting as it is and with the doors opened to those looking to get a piece of the real estate pie, there are still many risks involved and a lot of research should be done before deciding to jump on the real estate crowdfunding express. You can start by reading this article from the Wall Street Journal: “Real-Estate Crowdfunding Finds Its Footing”.