Real Estate Crowdfunding — Then & Now
When the JOBS Act passed in 2012, the recovery from the Great Recession felt precarious, companies were still investing and hiring cautiously, and many real estate investors were still licking their wounds and just begging to invest opportunistically again as certain markets began rebounding.
The legislation opened the door for “real estate crowdfunding” by making general solicitation of equities legally viable. Since 2012, the fledgling real estate crowdfunding industry has grown rapidly, hit a few roadblocks, and generally stabilized — carving out a lasting niche in the disruption of Wall Street and centralized banking, investing, and finance.
While investors have grown more comfortable with the prominent platforms operating in the space, there remains a sizable education gap between individual investors and institutional investors, who historically have devoted a much higher share of their portfolios to alternative assets like private-market commercial real estate (an asset that the real estate crowdfunding paradigm now makes accessible to individuals).
If real estate crowdfunding is of interest to you, we hope you will find the following resources valuable:
- The Difference Between REITs & Real Estate Crowdfunding
- The Real Estate Crowdfunding Investor Preference Survey
- A Survey of Real Estate Crowdfunding Platforms: Q4 2018
Should you have any questions, or want to hear more about real estate crowdfunding, please don’t hesitate to visit up as www.equitymultiple.com.
