There is a lot of speculation going on about how the new changes to crowdfunding rules will effect the real estate market? The National Association of Realtors had some interesting recent information on their blog.
NAR Speaking of Real Estate blog highlighted the potential benefits crowdfunding will have on real estate and financing for small businesses...
| The U.S. Securities and Exchange Commission is publishing a final rule in January that will take a big step in making so-called crowdfunding a mainstream way for small businesses to raise money. That’s important for real estate, because one of the first things small businesses look at when they have capital to expand is their real estate needs... |
How viable is crowdfunding as a capital source?
| Last year is was viable enough to generate $16 billion to small businesses. When you consider all venture capital funding in the U.S. last year was about $45 billion, according to some estimates, $16 billion stands up pretty well. In any case, analysts predict crowdfunding to get quite a bit bigger once the SEC rule tales effect. And, in some respects, there’s no downside, because individuals who invest money though a crowdfunding platform are not necessarily the same investors who put money into more typical Wall Street and other investment opportunities. If that’s true, crowdfunding helps create a bigger pie, not a re-proportioning of the pie. |
The folks at NAR also mentioned crowdfunding in a recent video blog:
From HousingWire.com
| Crowdfunding is a big buzzword in the real estate space right now.But, there are question about whether or not it can work.And, right now, Realtors are showing a big interest...It's true. Crowdfunding will only get bigger... And there is no downside, that is until the Consumer Financial Protection Bureau puts crowdfunding on its radar. |
From the Home Buying Institute...
| Awareness is another obstacle for real estate crowdfunding. While the term itself is familiar to most investors, many of them don’t fully understand how it works, or how to invest through such a platform. If regulations are eased to allow smaller investors into the game — thereby “democratizing” real estate crowdfunding — there will be a need for more education, training and outreach. But such learning curves are common with new technologies and investment strategies. |
Do you think real estate will receive a major change due to crowdfunding in 2016?
