The Note and Real Estate Industries are experiencing the beginning of a revolution in the market for accessing and deploying capital. It will impact all participants of the sector. Much has been written on the subject and a number of Funding Portals are popping up all over the Web as they all compete to become the Amazon or EBay of crowdfunding.
Whether you are an entrepreneur in the process of raising a round of funding to invest in a property, or a lender seeking potential high return opportunities, crowdfunding platforms should be of great interest for you to fully discover and explore. Entrepreneurs are preparing for the coming market disruption. It is such a massive industry that the disruption will not happen over night, but more like a tectonic shift that will happen over the next few years.
Crowdfunding fits perfectly with the Note and Real Estate Industries for a couple of reasons. Notes and Real Estate as an investment is easier to understand than say an investment in technology or intellectual property. Investors are better able to evaluate investment opportunities, as they often intimately know the local real estate market and can easily check the status of projects by simply driving past a property of interest. They are also able to readily look at zoning issues, and even recent comparable sales, title and tax records online. All these make real estate investments more concrete, transparent and understandable for all involved.
Regulatory changes are providing for much needed new sources of capital to assist in the development of real estate opportunities. Exciting market conditions present themselves for talented and innovative entrepreneurs. These are groundbreaking regulations and unprecedented business opportunities.
Crowdfunding is the next big thing in corporate finance, with a majority of the U.S. population having a high interest in potentially making an investment via equity crowdfunding platforms. It is attracting everyone, from individuals who want to get in the next big thing to regulators that want to protect investors from bad investments.
This overview is meant to help clarify crowdfunding for you and to provide some practical advice to successfully engage in a particular type of crowdfunding that is now possible for note investors and real estate developers and project owners.