Real Estate Crowdfunding Keeps Outgrowing

In 2012, a trio of real estate professionals decided to jump on the brand-new trend of real estate crowdfunding.

The company they founded, Sharestates, hoped to help emerging developers secure loans of a few hundred thousand dollars to renovate and flip buildings in markets where banks wouldn’t tread. Investors could buy into a project with as little as $5K. 

Seven years later, Sharestates has smashed its original goal — and several goals beyond that. The company has funded a combined $2.19B in deals and has increasingly taken on larger projects, with some loans exceeding $10M. The average Sharestates investor now places $125K into the platform...

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RSK: This is good news in many ways. First, it gives smaller investors a chance to invest in commercial real estate. Second, it gives the project owners an opportunity to have access to funding that may otherwise be hard to secure even if it is just a bridge loan. In the long run, many owners will stay with the crowdfunding source for up to 10 years. Just do not invest money in real estate that you cannot afford to lose such as your kid`s college education fund.