Crowdfunding is a well-known method for both individuals and businesses to raise money for different projects, including real property development. We will review several of the more well-known real estate crowdfunding sites.
What is Crowdfunding?
Crowdfunding lets you fund your business or project with small amounts of capital usually through the internet.
Crowdfunding platforms permit both businesses and individuals to launch campaigns and set the goal of fundraising. The campaign is then publicized to potential supporters.
Backers will be awarded the reward or ROI when the campaign is successful and it is able to meet the goal of fundraising.
Types of Crowdfunding :
There are a variety of crowdfunding, such as:
1) Donation-Based Crowdfunding:
This method of crowdfunding requires backers investing money in an event but receiving no compensation for their investment.
2) Reward-Based Crowdfunding:
This type of crowdfunding lets backers receive an incentive for their contribution for example, a product or service that is related to this campaign.
3) Equity Crowdfunding:
This kind of crowdfunding lets backers gain ownership of the company or project as compensation for their capital.
Top Crowdfunding Real Estate Sites:
1) Fundrise:
Fundrise is a crowdfunding platform that focuses on real estate. It lets investors invest in commercial and residential real estate properties.
Fundrise requires the minimum investment of $500. It also offers a wide range of investment options for individuals who have been accredited or not.
2) Roofstock:
Roofstock is a crowdfunding for real estate platform that allows investors to purchase or manage properties for rental online.
Roofstock is a requirement for the minimum investment of $1000. It is accessible to accredited investors as well as non-accredited investors.
3) PeerRealty:
PeerRealty allows investors to invest on commercial real estate projects through a crowdfunding platform. PeerRealty requires a minimum of $1,000 to be eligible for both accredited and unaccredited investors.
4) RealtyMogul :
RealtyMogul allows investors to invest in residential and commercial real estate projects.The platform offers a variety of investment options, including equity and debt investments.RealtyMogul has a minimum investment requirement of $1,000 and is available to both accredited and non-accredited investors.
5) Crowd Franchise:
CrowdFranchise allows investors to invest directly in real estate franchises, such as restaurants, hotels and retail stores. CrowdFranchise requires a minimum of $1,000 to be eligible for both accredited and unaccredited investors.
Conclusion:
Crowdfunding real estate sites gives people the chance to make investments in a wide range of real estate properties, such as commercial and residential developments and franchises, rental properties as well as rental property.
They offer a variety of investment options with very low investment minimums. This means they are available to a wide range of investors.