CRE equity crowdfunding has a very bright future. How does that affect you the investor? Many may not know what that means and we are here to help clear the air. At Luxe Crowdfunding we offer the best real estate crowdfunding sites to get you the biggest investment.
What is CRE Equity?
To simplify it, crowdfunding is raising capital from the crowd through the sale of securities in a private company. These are securities like shares, convertible note, debt, revenue share, and more. While some will say that crowdfunding in real estate is a trend that will die soon, a report from the Cambridge Centre of Alternative Finance shows that real estate crowdfunding across the Americas grew by 250 percent in 2015 to a volume of $483.77 million, up from $138.15 million the previous year, with similar yearly rates of growth over a three-year period. Ask about our real estate crowdfunding sites.
What Are The Trends in Equity Crowdfunding
- Target investors across a wider range.
- Crowdfunding in commercial real estate has opened up a market that traditionally has had high barriers of entry to a wider constituency with regard to the minimum investment required, geography, and accreditation status. Rather than requiring minimum equity commitments upward of six figures, investors can buy in with as little as $1,000 in some cases. Some platforms even provide the opportunity for unaccredited investors to build and diversify their portfolios, or create a streamlined process for foreign investors to have a stake in U.S. real estate with fewer hoops to jump through.
- Utilize access to multiple platforms.
- Several investment models are available across dozens of platforms within the commercial real estate crowdfunding space. When considering online crowdfunding to supplement equity or even establish an electronic real estate investment trust or fund, it is important to understand that not all of these platforms are created equal; in fact, due to their differences, they can be leveraged alongside each other.
- Additionally, while the two platforms have similarities since they were both chosen carefully to fit the company’s needs, differences between them include minimum investment and investment terms. A wide range of options is available, depending on what platform is used, often specializing in certain types of investment. Some of the available options include direct investment in equity, debt investments, eREITS, and funds.
- Leverage upfront savings for potential investors.
- While it is far too early to determine to what degree these digital investment platforms will cut out the traditional middleman, in many cases online crowdfunding creates a more direct method of real estate investment and can lead to immediate savings in upfront fees for investors. In turn, this means that commercial real estate owners, developers, and investment firms can utilize this absence of fees as an incentive for their potential investors, and might ultimately see them investing more than they would have otherwise.
Call Us Today
Interested in learning about equity crowdfunding real estate investing or even some more details about real estate investing be sure to call us today! Try our real estate crowdfunding sites. You will never to need to ask what is real estate crowdfunding. Our investing experts have the best expertise in Florida. At Luxe Crowdfunding, we endeavor to excel in every service we provide, adding value for our investors wherever possible, and thereby succeeding nationally in the construction industry. Call us today for more information.