By Erik Dolan-Del Vecchio | November 17, 2016
Commercial real estate crowdfunding platforms promise to democratize real estate investing, but before diving in it’s important to know the basics. There are tons of crowdfunding platforms online, but not all of them are necessarily good places to put your money. From direct equity sponsored investments to auto-investing in debt, we’ll cover the five different types of commercial real estate crowdfunding platforms and then explain what the trend as a whole means for developers.
Commercial Real Estate Crowdfunding Explained
Traditionally-huge barriers to entry have kept real estate investments accessible only to high net worth individuals — until now. Today, individuals can throw as little as $1,000 into real estate investments through certain types of crowdfunding, going a huge way towards opening the sector to more investors. Simply put,crowdfunding opens real estate investment beyond the traditional circle of owners, developers, and lenders to include anyone and everyone who is interested and want to pony up the cash.