Crowdfunding Real Estate Commands Cautious Excitement

By: Michael Polentz
– GlobeSt.com

The ubiquity of crowdfunding websites like GoFundMe and Kickstarter, coupled with Title III of the Jumpstart Our Business Startups Act going into effect earlier this year and opening up public, online crowd capitalism, made it almost inevitable that crowdfunding platforms geared towards real estate investments would also explode.

Forbes.com has reported that hundreds of millions of dollars were raised through crowdfunding for real estate in 2015, and Crowdsourcing.org’s inaugural report on real estate crowdfunding, 2015CF-RE Crowdfunding for Real Estate, projected that real estate crowdfunding would reach $3.5 billion in 2016, mainly from North America. Clearly, the fervent interest is there for real estate crowdfunding sites like Fundrise and GroundFloor—but in such a young, untested industry, what are some things an interested investor can do to better protect their interests?

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