There are many benefits when it comes to real estate crowdfunding. Here at Luxe Crowdfunding we genuinely believe that equity crowdfunding will lead retail investors to institutional-quality real estate investments for the first time. However, it’s not just us saying this- a lot of professionals in the industry believe in this path and they have quite a bit to say on the subject of property crowdfunding. Read on to learn more about what top industry professionals are saying about real estate crowdfunding. Luxe Crowdfunding is a premium national investment management firm who can help you find the best real estate investment opportunities for top returns. Call us today to expand your assets!
What Industry Professionals Are Saying
Many industry professionals and experts are feeling confident about crowdfunding in real estate investments. Crowdfunding for real estate is really nothing new, notes U.S. securities attorney Mark Roderick. Basically, Roderick says, crowdfunding is simply a different way to raise money. “The reason it’s so exciting is that it’s nothing more and nothing less than the internet coming to the capital formation industry. The Internet directly connects buyers and sellers and, in this case, developers and investors… It’s disruptive, reduces cost, and increases efficiencies.” Joaquin de Monet, founder and managing principal of Palisades Realty Advisors, LLC notes that real estate sponsors and developers are increasingly noticing crowdfunding as well. “Folks have created platforms and the technology around those platforms to allow accredited investors to sign up on their websites to get access to deals, and they’ve been successful at getting developers and operators to post deals on their websites in a way that’s helping them to finance their projects. From that standpoint, it’s been a success.” Research company Massolution released a comprehensive study earlier this year illustrating that worldwide total funding volume on real estate crowdfunding had reached above $1 billion in 2014 and continued to grow.
Risks of Property Crowdfunding
Like any type of investment, there are risks that inherent to investing in real estate in general. It is important to go into the investment well informed regarding the types of risks you may be facing, as with any real estate investment opportunities. Paul S. Rutter, of counsel at Gilchrist & Rutter and a board member of the UCLA Ziman Center for Real Estate, noted that “for investors making an investment in a loan, the risks are similar to those taken by any lender. The borrower might default; there could be a loss of income from defaulted interest payments and a loss of principal from a failure of the borrower to repay the loan.” Real estate crowdfunding will carry certain risks, like any form of investing, but as the experts above indicate, crowdfunding also holds incredible potential to transform the capital raising process.
Contact Us Today
Industry leaders are confident about the field of property crowdfunding, as it cuts out the middleman and allows investors more real estate investment opportunities. Luxe Crowdfunding is an elite national investment management group. Call us today for your investment needs and grow your assets!