Once the JOBS Act was passed in 2012, the concept of crowdfunding exploded in popularity, allowing money to be raised for everything from small businesses to real estate developments. What exactly is crowdfunding, and is it a good option for you as an alternative to investing in traditional real estate?
Crowdfunding is the ability to raise money through small contributions from multiple individuals. The concept of crowdfunding has become more widespread thanks to the extensive adoption of online usage and social media. Companies such as Kickstarter have managed to raise millions of dollars for all types of projects.
Although real estate is relatively new to crowdfunding, the potential in this space is massive. With crowdfunding, it becomes possible for investors to gain access to a wide variety of properties using an online platform. Investors typically invest small amounts of money, sometimes as little as $1,000, into properties. Our comprehensive guide will take you through the evolution of real estate crowdfunding. From the advantages, to the myths, to the basics of getting started, and practical tips to move in from amateur to expert. First off, let’s focus on the top 3 advantages of real estate crowd funding.