Crowdfunding is a popular method to finance projects, charities, or even businesses. Crowdfunding could also be used to expand into the real estate market. Investors will be impacted by this.
There are many opportunities for property owners across the country. The co-invested fund is primarily focused on connecting local investors to market opportunities. This local approach eliminates the underwriting risks that can be associated with real estate crowdfunding on an international scale.
Crowdfunding is growing partly because investors are more interested in the project. Many investors are looking to expand their portfolios. This could be as simple as selling a building with only a few units and purchasing a building with many. This is usually done via a 1031 exchange. These investors seek sellers with a flexible timeline.
Crowdfunding is still a new concept in real estate. There is still plenty of room for oversaturation. Experts estimate that 250 crowdfunding platforms are currently operating in the real estate market. This means there is plenty of growth potential.
It is possible that crowdfunding platforms will become more flexible as they grow and adapt to meet different market needs. These might include different types of investors, types of returns, geographic locations, or types of real estate.
The investors feel that only those with a net worth of $500,000 or more are eligible for high-end investments. Investors with lower incomes are unable to participate in the market. Crowdfunding could change this. Crowdfunding could make investing in real estate more accessible.