How to Raise Real Estate Money Through the Crowd

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BY NOW, YOU’VE PROBABLY HEARD HOW CROWDFUNDING is changing the way people get and invest money for real estate. But did you know that the Statue of Liberty was America’s first major crowdfunding project?

WHAT IS CROWDFUNDING? Crowdfunding is taking the power of a group of people (a “crowd”) to raise money for a real estate or business deal or project. And that’s how the Statue of Liberty got the base on which it was erected.

THE STATUE ITSELF WAS A GIFT FROM FRANCE, but the U.S. didn’t have the money for a pedestal to stand it on. To get it built, publisher Joseph Pulitzer started a fundraising campaign in his newspaper The New York World.

THE CAMPAIGN RAISED MONEY from more than 160,000 people, including children, business owners, and others, with most donations amounting to less than a dollar each. The total raised, at today’s prices, would be more than $6 million!

TODAY, PEOPLE ARE USING THE SAME CONCEPT to raise money to fund their real estate deals.

HOW CAN YOU GET STARTED WITH CROWDFUNDING for your company or real estate project? First, you need to:

  • Understand that crowdfunding is carried out on the Internet, through websites known as crowdfunding portals or platforms (see list of top real estate crowdfunding platforms below)

  • Learn how the portals work and get to know the rules for participating (Since crowdfunding is relatively new, laws that affect it are still evolving. In early November of 2015, the U.S. Securities and Exchange Commission adopted final rules to permit companies to offer and sell securities through crowdfunding, as part of the JOBS Act. The new crowdfunding rules and forms will become effective later in 2016.)

  • Become familiar with the various real estate crowdfunding portals and find which ones might work for you (for example, some portals specialize in commercial real estate or in specific geographic areas)

ONCE YOU’VE DONE YOUR RESEARCH, take these easy steps:

  1. Prepare a written business plan for your deal or project

  2. Visit as many real estate crowdfunding websites as you can or contact them using the list of real estate crowdfunding portals below.

  3. Read each website’s “About Us” and “How It Works” sections

  4. If you like the way the site works, sign up (register) and continue with the following steps; if the site doesn’t meet your needs, move on to the next site

  5. Follow the website’s instructions for listing your deal

  6. Submit your business plan and funding request

  7. Monitor your crowdfunding campaign to see the crowd’s money coming in

TOP REAL ESTATE CROWDFUNDING PORTALS

WANT A CROWD TO FUND YOUR REAL ESTATE? Here are 20 top real estate crowdfunding websites you can try.

A Crowd Funding Realestate

Email: info@
acrowdfundingrealestate.com

Website: acrowdfundingrealestate.com

Acquire Real Estate

247 W 30th Street, 11th Floor

New York, NY 10001

Tel: 800.385.4251

Email: info@acquirerealestate.com

Website: acquirerealestate.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

Contact: www.crowdmason.com/contact-us/

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

Tel: 305.962.3156

Email: info@groundbreaker.co

Website: groundbreaker.co

iFunding

Email: info@ifunding.co

Tel: (844) 367-4386

Website: ifunding.co

Patch of Land

1901 Avenue of the Stars

Los Angeles, CA 90067

Tel: (888) 959-1465

Fax: (310) 776-6484

Email: sales@patchofland.com

Website: patchofland.com

Peer Realty

222 W. Merchandise Mart Plaza

Chicago, IL 60654

Email: info@peerrealty.com

Tel: (312) 248-3220

Website: peerrealty.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

Contact: propertypeers.com/contact.php

Website: propertypeers.com

RealCrowd

Palo Alto CA

Tel: 800-286-1602

Email: info@realcrowd.com

Website: realcrowd.com

RealtyMogul

10780 Santa Monica Blvd

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

This article originally appeared in the November, 2015 issue of the International Wealth Success Newsletter. Learn more about Financing and Financial Brokering.

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