Could crowdfunding be the new frontier for real estate investing?
Crowdfunding is an emerging industry alternative to property investment trusts for modern investors looking to gain exposure to real estate.
Crowdfunding is a growing phenomenon, based off of collecting funds from groups of individual investors to make a great variety of projects a reality with the funds raised.
So far, crowdfunding has been a significant capital-raising tool, and the World Bank predicts that in a few years the crowdfunding industry as a whole will be worth an estimated $93 billion. In the US alone, crowdfunding has grown by nearly 145%, with real estate making up a significant amount of that number.
However, despite this promise of capital appreciation, there are still significant challenges for this budding industry to overcome before it can reach its full potential as an investment space.
Kirill Bensonoff, medium.com