LOOKING FOR CASH FOR REAL ESTATE? HAVE YOU TRIED ALL THE USUAL SOURCES? Crowdfunding can be an excellent way to get non-conventional loans, raise capital, or get in on large, lucrative deals with other people. Become a Crowd FINDER and go out and get crowdfunded!
CROWDFUNDING IS A RELATIVELY NEW METHOD for people seeking funds for residential or commercial real estate. And we have a BIG list of real estate crowdfunders (also called crowdfunding “platforms”).
REAL ESTATE CROWDFUNDING CONSISTS OF groups of people donating, lending or investing in real estate deals of all types—single-family homes, commercial properties, distressed mortgages, multifamily buildings, development projects and more.
INVEST OR GET FINANCED! With crowdfunding, you can get people to put money into your real estate deal OR you can get wealthy investing in real estate projects yourself. Investments can begin as small as $100, depending on the platform you choose..
REAL ESTATE CROWDFUNDING IS EXPLODING. Today there are more than 70 real estate crowdfunding platforms. A couple of years ago, there were only 20!
Crowdfunders have generated more than $200 million in funding for real estate deals so far. And, while crowdfunding is used for many purposes other than real estate, crowdfunding for real estate may well be the hottest, fastest growing form of crowdfunding today.
Different platforms work in different ways and some focus on particular kinds of properties. One thing they all have in common is that they carefully study each deal that comes to them so that they can offer the best moneymaking projects to the people who put money into them. This process is called vetting.
IN GENERAL, CROWDFUNDING FALLS INTO FOUR MAJOR TYPES:
- In donation-based crowdfunding, the issuer (the person or group seeking money) receives no-repay “gifts” from the investors/donors. These are alot like small grants, so the investors/donors receive nothing in return except the satisfaction of contributing to the deal, project or business.
- In rewards-based crowdfunding, investors/donors usually receive small rewards like products, discounts, or a small cash return for the money they put into the crowdfunded deal.
- In lending-based crowdfunding, groups of investors provide loans (often at low interest rates) to the issuer and earn back a percentage of what they contribute.
- In equity-based crowdfunding, investors receive a share of the business or project and earn money on the profits the deal generates. This is similar to venture capital or angel money.
REAL ESTATE CROWDFUNDING IS TYPICALLY of the lending-based or equity-based type. As an example, if you need need $100,000 to buy and/or renovate a property, you can propose your project to a crowdfunding platform or company and ask for a loan. Investors can then choose to lend money to you through the crowdfunding platform. To raise $100,000, you’d need 20 investors, each putting $5000 into your deal, or 40 investors, each putting in $2500.
ON MANY CROWDFUNDING PLATFORMS, YOU NEED TO RAISE the money you seek within a certain amount of time. If you don’t reach your funding goal within that period, the deal does not go forward.
IF YOU DO REACH YOUR GOAL, the funds may be sent to you or your builder to buy or fix up the property. Then the investors receive interest payments on the money they loaned to you.
CROWDFUNDING IS EVOLVING AND CHANGING because it’s relatively new. New rules and laws are still being made which will affect how it works in the future. The main law concerning crowdfunding is called the JOBS Act (Jumpstart Our Business Startups). You’ll find more helpful information on the JOBS Act elsewhere in this issue of MWB.
CURRENTLY, ONLY “ACCREDITED INVESTORS” can put money into crowdfunding deals, but this may change. To be an accredited investor. you must meet one of the following criteria:
- Earn more than $200,000 per year
- Have a net worth of over $1 million
- Be a general partner, officer, or director of the issuer seeking crowdfunding
CHECK OUT THE REAL ESTATE CROWDFUNDING WEBSITES below or contact them for more information. You can find additional facts and tips on real estate crowdfunding on the Internet.
REAL ESTATE CROWDFUNDING PLATFORMS
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Acquire Real Estate |
www.acquirerealestate.com |
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American Colonial Capital |
americancolonialcapital.com/site/index.html |
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American Homeowner Preservation |
ahpinvest.com |
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AssetAvenue |
www.assetavenue.com |
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AssitecaCrowd |
assitecacrowd.com |
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BlackHawk |
blackhawkcorp.com/index.php |
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Carlton Accredited Equity Crowdfunding |
www.carltonaccreditedcrowdfunding.com/en |
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Creative Equity Group |
www.creativeequitygroup.com |
|
CrowdAlliance |
www.crowdalliance.co |
|
Crowd Funds Real Estate |
www.crowdfundsrealestate.com |
|
Crowdfunder |
www.crowdfunder.com |
|
CrowdRealty Co. |
www.crowdrealty.co |
|
CrowdStreet |
www.crowdstreet.com |
|
CrowdTranche |
crowdtranche.com |
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CrowdVested |
www.crowdvested.com |
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CRWD |
www.crwd.com |
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Deitscho |
www.deitscho.com |
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DiversifyFund |
diversyfund.com |
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EquityHunt |
www.equityhunt.com/home |
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Equity Multiple |
www.equitymultiple.com |
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EquityNet |
www.equitynet.com |
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Flipping4Profit |
flipping4profit.com/home.php?referrer=f4p |
|
Funding Hamptons |
www.fundinghamptons.com |
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Funding Roots |
www.fundingroots.com/#real-estate-crowdfunding |
|
Fundrise |
www.fundrise.com |
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FundthatFlip |
www.fundthatflip.com/en |
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Groundfloor |
www.groundfloor.us |
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GroundBreaker |
www.groundbreaker.co |
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Ground Lease Capital Partners |
www.groundleasecap.com/crowdfunding |
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High Income Real Estate |
highincomerealestate.com |
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HomeUnion |
www.homeunion.com |
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iFunding |
www.ifunding.co |
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Inner 10 Capital |
www.inner10capital.com |
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InstaLend |
www.instalend.com |
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InvestPeer |
www.investpeer.com |
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KC iFund |
kcifund.com |
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Localstake |
localstake.com |
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Loquidity |
www.loquidity.com |
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Main Street Crowd |
www.mainstreetcrowd.com |
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MassVenture |
www.massventure.com |
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Mayfair and Morgan |
www.mayfairandmorgan.com |
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Money 360 |
www.money360.com |
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Nex Regen |
www.nexregen.com |
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NXGen Capital, Inc. |
www.nxgencapital.com |
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The NNN Crowd |
www.thennncrowd.com |
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Open Source Capital LLC |
opensourcecap.com |
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Our Street |
www.ourst.co |
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Passive Flow |
www.passiveflow.com |
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Patch of Land |
patchofland.com |
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Peer2PeerNetworks |
www.peer2peernetworks.net |
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PeerRealty |
peerrealty.com |
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PeerStreet |
www.peerstreet.com/welcome |
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PRIMARQ |
primarq.com |
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Prodigy Network |
www.prodigynetwork.com |
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ProHatch |
prohatch.com |
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PropFunds |
www.propfunds.com |
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Propellr |
www.propellr.com |
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PropertyPeers |
propertypeers.com |
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Property Pool |
www.property-pool.com |
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Real Estate Capital Partners |
www.recp.com |
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Real Circle |
www.realcircle.com |
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RealConnex |
www.realconnex.com |
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Real Liquidity |
realliquidity.myinstapage.com |
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RealCrowd |
www.realcrowd.com |
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Realquidity |
realquidity.com |
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Realty Mogul |
www.realtymogul.com |
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RealtyShares |
www.realtyshares.com |
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RealtyWealth |
www.realtywealth.com |
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RCS Capital |
rcscapital.com |
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Rich-Uncles |
www.rich-uncles.com |
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Terra Funda |
www.terrafunda.com |
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Wealth Migrate |
www.wealthmigrate.com |
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We Are Crowdfunding |
www.wearecrowdfunding.com |
A Crowd Funding Realestate
Email: info@acrowdfundingrealestate.com
Website: www.acrowdfundingrealestate.com
Blackhawk
1793 Union St, Second Floor
San Francisco, CA 94123
Tel: 888-822-3888
Email: info@blackhawkinv.com
Website: blackhawkcorp.com
COAssets
38C North Canal Road,
Singapore 059294
Tel: +65-6532 7008
Website: coassets.com
CrowdBaron
Office 1604, Tower Two, Grand Plaza
625 Nathan Road
Kowloon, Hong Kong
Tel: +852 3184 6150
Website: crowdbaron.com
CrowdMason
Website: crowdmason.com
CrowdStreet
308 NW 11th Avenue, #200
Portland, Oregon 97209
Tel: (888) 432-7693
Website: crowdstreet.com
FundRise
1519 Connecticut Ave NW, Suite 200
Washington, DC 20036
Email: contact@fundrise.com
Website: fundrise.com
Globerex
Tel: (212) 812-1480
Email: info@globerex.com
Website: globerex.com
GroundBreaker
901 Mission Street, Suite 105
San Francisco, CA 94103
phone: 305.962.3156
Email: info@groundbreaker.co
Website: groundbreaker.co
iFunding
Tel: (844) 367-4386
Website: ifunding.co
Patch of Land
1901 Avenue of the Stars
Suite 1900
Los Angeles, CA 90067
Tel: (888) 959-1465
Fax: (310) 776-6484
Email: sales@patchofland.com
Website: patchofland.com
PriMarq
200 California Street
San Francisco, CA 94111
415.710.2700
Website: primarq.com
ProdigyNetwork
40 Wall Street, 31st Floor
The Trump Building
New York, NY 10005
800 686 0100, 212 966 1015
Website: en.prodigynetwork.com
PropertyPeers
Website: propertypeers.com
RealCrowd
Palo Alto CA
Tel: 800-286-1602
Email: info@realcrowd.com
Website: realcrowd.com
RealtyMogul
10780 Santa Monica Blvd, Suite 140
Los Angeles, CA 90025
Tel: (310) 907-7129
Email: help@realtymogul.com
Website: realtymogul.com
RealtyShares
637 Natoma St., Suite 5
San Francisco, CA 94103
Tel: 866-202-2023
Email: support@realtyshares.com
Website: realtyshares.com
Tycoon
601 Van Ness Ave, Suite 47,
San Francisco, CA 94102
Tel: 888-646-6242
Email: CustomersRule@TycoonRE.com
Website: tycoonre.com
