June 25, 2015
Investors, who may not otherwise have the expertise or financial wherewithal to purchase commercial real estate in their own right, essentially pool their resources and purchase property as part of a larger group. Considering the extent to which technology is advancing and new concepts are emerging, it is conceivable that a new phenomenon may reach us before long – that is the concept of “crowdfunding”, which is becoming increasingly popular in real estate in the US and gaining traction in Europe and Asia.
Crowdfunding or peer-to-peer lending is described as “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet”.
There are now several well-established crowdfunding platforms including Kickstarter, Indiegogo, Rockethub, and Crowdcube, among others. Most of these are US platforms that have been expanding overseas into Europe and elsewhere. These platforms enable start-up businesses and entrepreneurs to launch and promote their business ideas online and give investors an opportunity to invest in this idea, often for a relatively small outlay.
Read the Full Story Here:
via Is crowd funding the answer for developers left without financing from the banks? – Independent.ie
