Since Sept. 2013 and Sept. 2015, $870 million has been put into crowdfunding platforms, and $208 million of that total went toward real estate projects according to New York data provider, Crowdnetic.
The real estate industry beat out biotech, alternative energy, tech wearables, online gaming and social media start-ups combined, pointing to a trend in alternative real estate financing.
It appears that crowdfunding is especially popular among flippers, where they have access to a larger network of investors than traditional partners, family or friends.
For the investors, many see real estate as a safer avenue than say, start-ups, due to the security of its asset-based nature. Crowdfunding appears to work better with smaller residential projects than large commercial projects requiring millions of dollars. Read the full article, here.