EQUITY BASED CROWDFUNDING FOR REAL ESTATE

Market Trends

CROWDFUNDING

Crowdfunding has come a long way since its inception in the United States "Statue of Liberty" project nearly a decade ago.

Crowdfunding is a means of financing businesses, technology, legal and creative projects, by raising funds virtually over web-based financial platforms that make investing in real estate projects, which are oftentimes quite remote from the investor, accessible to private individuals distributed throughout the internet.

The solicitation approaches used in equity based crowdfunding include mailers, emails, blog-based, videos and formal web-based financial institutions which comply with the complex laws governing raising revenues through the sale of equity and debt in the underlying business or business venture.

CROWDFUNDING AND REAL ESTATE

Real estate crowdfunding aggregates investment capital that funds real property types of projects. The investment is made available through crowdfunding platforms specializing in real estate investments such as FundRise.com, RealtyMogul.com and RealtyShares.com. The investment funds generated by these sites is by no means nominal. A 2015 Massolution report found that in 2014, $1 billion was injected into the United States real estate market, with further predictions that the figure would more than double to $2.5 billion by the end of 2015. Additionally, other analysts predict that the number of real estate crowdfunding platforms globally will exceed 100 by the year's end.

The opportunities available through equity based crowdfunding, including developments in micro-sized investment opportunities in the $100 range, have opened the potential of the profits to be made in large real estate projects available to smaller investors and industry outsiders who have previously been denied access to these projects due to their not having known an insider involved in the project(s).

The returns can be significant. Some recent estimates have placed the return available to these investors in previously unheard of ranges of 10 to 12 percent, adding to that the stability that comes with investments in the real estate market.

To address the rapid expansion and its impact on economies, legislators, both in Europe and the United States, have begun to assume an active part in drafting regulations to ensure the integrity of crowdfunding financing with laws aimed at ethical disclosure, investor pre-qualifications and regulations of the instruments which are generated by projects and businesses which utilize crowdfunding, as those investment options can resemble traditional stock equity and bond debt instruments.

The real estate crowdfunding market is anticipated to expand by more than 25 percent annually over the next few years.

Additionally, the size of the funded projects continue to grow. Companies such as RealtyShare in San Francisco are working to create an investment model for crowdfunded real estate projects similar to the purchase of stocks and bonds, which will change the accessibility of real estate investments, enabling investment by individuals with smaller capital amounts and smaller net worths, a practice, which has been analogously demonstrated in other markets to deliver explosive growth in the market under consideration.

News earlier this year that the venture capital firm, CSC raised over $400 million using a crowdfunding platform, excited investors who recognized the synergistic potential created by the merging of micro investors and venture capital firms.

Presently, it's reasonably safe to say that Europe is undergoing a Real Estate boom, with further growth predictions going into the next year and potentialities expanded by the market growth enabled by crowdfunding.

EXPORO

Composed of a diverse team of seasoned business professionals with financial and real estate backgrounds, Exporo is a German market leader in crowdfunding for real estate projects. For nearly 7 years, Exporo has worked with industry recognized real estate project developers to put together financing for successful real estate projects. Exporo also realized the potential created by the crowdfunding platforms in the real estate domains, of making real estate investments, which had previously been reserved solely for larger investors, available to the smaller investor markets.

The high profitability of this mode of financing creates high returns in a transparent manner and Exporo actively pursues a leadership role in this industry to the advantage of our customers and investors.

Contact us today to discuss your equity based crowdfunding and crowdfunding for real estate needs.

Exporo.com