If you’ve talked to a good real estate consultant lately, you probably know that crowdfunding is making it easier for the small business owner–or fledgling entrepreneur–to invest in commercial real estate.
The crowdfunding movement in this industry took off when Ben Miller decided to use crowdfunding as a means to restore a worn-out building in one of Washington, D.C.’s transitional zones. He and his brother wanted to make it possible for everyone to invest in commercial real estate. In this effort, they raised $350,000 from 175 people at $100 a share. Now the industry will do a billion dollars a year. This venture led to an online crowdfunding platform – Fundrise. It offers lone investors a chance to buy shares in a commercial real estate project. The returns come from rental stream and the appreciation of the property itself.
Some other advantages to this kind of online resource include:
- Investors can work directly with real estate developers.
- Investors can choose which real estate projects in which they want to invest their money.
- Investors can access a range of projects.
This makes it easy for small-scale investor to take part. However, this tool may get you better results when you have the advisement of a professional real estate consultant. They have already done the market research. A real estate consultant also has a better handle on future outcomes that vary by industry and property type. Additionally, they can advise as to which online crowdfunding platform is the most credible. There are many out there. Some are very legitimate and others, not so much.
Crowdfunding is not new to the commercial real estate market. Large-scale investors were among the first to invest. However, for those not familiar with the marketplace, a real estate consultant can be very helpful in making smart investment choices.
If you have questions about crowdfunding opportunities, contact a Menlo real estate consultant today. We look forward to working with you!