Crowdfunding Property Investment Comes of Age
It’s a rare reversal when our cousins from across the pond are lagging behind the UK for internet start-ups ideas, but news provider CNBC today claimed the time is ripe for combining crowdfunding with real estate.
With over a year delivering a robust proposition based exactly on this premise, The House Crowd naturally agrees, especially with the CNBC journalist’s salient point that real estate finance has conventionally been confined to high earners and private equity firms.
A founding motto for The House Crowd is delivering great returns from property for the many rather than than the few.
And, it looks like other U.S. start-ups are being similarly inspired to democratise real estate investment now that restrictions on developers marketing projects to the public have been lifted.
But, there is a caveat for such Stateside enterprises. They can only market prospective developments to ‘accredited investors’ whose net worth is $1m or income of $200,000, so not quite the opportunity for the many as found with The House Crowd, and the focus with the cited start-ups is on development of real estate from scratch.
Low Investment Threshold
The article mentions Fundrise, who seek crowdfunding to develop real estate.
Like The House Crowd, it allows investors to invest in property with hitherto unimaginable low levels of capital, namely $1000; it seeks investment from a web platform; and investors own a share of the building along with returns from rent dividends and appreciation.
Another cited start-up, matching property development to crowdfunding is the Prodigy Network which raised millions in small amounts to build a skyscraper.
Clearly, crowdfunding and property investment is an idea rapidly coming of age, and we at The House Crowd are naturally delighted to be at the forefront of this movement – and even more delighted at being able to offer such a viable vehicle for wealth accumulation to our investors.