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What Is Real Estate Crowdfunding?

What's real estate crowdfunding? This post gives you a comprehensive look at what property crowdfunding is.

What's Real Estate Crowdfunding?

Real estate crowdfunding is abbreviated REC and can be also sometimes called property syndication. REC is a powerful way for investors to pool their intellectual and financial resources.

The aim of property crowdfunding would be to invest in properties considerably larger than shareholders can independently afford or handle. Property crowdfunding exploded on the scene following the passing of the 2012 JOBS Act.

real estate crowdfunding

Higher Accessibility

Real estate syndication's existed for decades. But before the debut of crowdfunding, syndicated investments were not difficult for individual investors to get. Only ultra-high-net-worth investors or institutional investors having countless millions, or even billions in funds could partake and gain.

Now, property syndication is available to everybody. Two of the most effective property crowdfunding businesses are Fundraise (for Non-accredited investors) and CrowdStreet (mostly for accredited investors). They provide entry to mid-market, commercial property deals that have supplied above-average property yields for decades.

This is the reason why so many investors, including myself, are enthusiastic about the developing property crowdfunding space.  I have personally spent $810,000 in property crowdfunding as of 2019. As of 2020, I have received over $269,000 in dividends.

This was a brief about real estate crowdfunding that everyone should know before investing in it.