A Meaningful Cause and Community Building Through Crowdfunding
When Real Estate Investment Trust brought commercial real estate benefits to middle class investors, many have risen to the occasion and contributed to the already lucrative market environment. REIT is a $300 billion industry that makes $4 billion trading volume on a daily basis in the US. Globally, REIT and the entire industry make up $1 trillion of the global market. On the contrary, a great number of industry experts are wondering if real estate crowdfunding real estate could be the new version of REIT. Crowdfunding is emerging fast in the land market that a lot of non-accredited investors are now convinced of the better benefits of it than what REIT could give. Experts say that this latest investment vehicle is an effective means to gain access to social capital for philanthropy, businesses and other useful projects
In comparison, REITs does not give average investors the chance to invest in remote real estate properties as an anonymous asset class, while crowdfunding offers to investors the opportunity to invest in a number of properties directly to the people who are interested to their success. Crowdfunding basically permits private individuals and entrepreneurs to participate in online fundraising events to support certain projects meaningful to them. Good thing crowdfunding is recognized legal in the United States even though most projects are done online. In fact, the government further legalizes it with the passage of Jumpstart Our Business Startups Act in 2012. The said securities law formally legalizes crowdfunding that are equity based. The Securities and Exchange Commission is currently defining new rules and regulations to regulate crowdfunding investors and activities. Crowdfunding, when it comes to the land market, is the new and interesting way to voice out one’s need to buy shares in a company. This is perfect for anyone who wants not only investment returns, but ownership to a piece of land as well.
Crowdfunding real estate
Crowdfunding real estate is one of the viable means to get involved with community building and be a part of a greater cause. For example, you can exert collective effort with other investors to buy a building and rebuild it to make a hospital for the elderlies or cancer patients. This investment goal can be achieved through crowdfunding, while exposing you to different worthwhile projects that bring positive developments to your community. Indeed, crowdfunding real estate is a good match for land development projects. For land acquisition and development, the JOBS act plays an important role in easing complex transactions. This law promotes equity crowdfunding for enterprises that are investment-worthy. This is considered a stimulant for all local estate investment selections that are often invisible in the institutional radar.
Meaning, crowdfunding for real estate developers real estate investors can fund as low as $1 million a year for real estate projects that are worth $1 – $20 million. Spending your investment efforts to enterprises where real estate is a crucial part in making success come true is a big privilege. It is also a unique opportunity to be able to help startup businesses that play the main role in promoting the future growth of sustainable communities.
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