Real estate crowdfunding is a fast-rising industry worldwide and Acquire Real Estate and CityFunders are among the latest entries into the industry. The two companies are seeking for the services of real estate advisors to help them grow their businesses. Property crowdfunding platforms allow individual investors to participate directly in property investment projects for just a few hundred or thousand dollars. This has become a property financing alternative since the enactment of Jumpstart Our Business Startups or JOBS Act of 2012, which allowed private companies to raise money from individuals. In 2014, real estate crowdfunding worldwide surpassed the $1 billion mark and that amount is projected to increase, by 150 percent, to $2.57 billion this year, according to Massolution.
For several years, real estate remained a strong investment and that is why many people have great appetite for real estate investing. This makes real estate crowdfunding the preferred alternative for individual investors to get into real estate investing now and in the future. Crowdfunding allows investors more transparency and control.
CityFunders was launched on June 4 this year and is already in talks with advisers who will help them develop processes that will suit all participants. The company offers equity and debt deals, allowing investors to commit a minimum amount of $5,000 in each project. The firm has secured $40 million to pre-fund investments listed on its platform.
Acquire Real Estate, launched in January 2015, has developed a module into its website which allows advisors to access and scrutinize clients’ investments making it easier for the firm to prepare investor’s portfolios and returns. The company has already completed six deals, with the latest deal of $6 million to be used for funding real estate and as working capital. The company together with its partners currently have $85 billion worth of transactions.
Both companies have experienced teams of real estate experts who vet projects before being listed on their platforms. The advisors will help the companies to do their homework comprehensively so as to determine the viability of real estate projects to offer their clients. The two companies invest for themselves first before allowing others to partake.