Crowdfunding is a popular way to fund projects, charities, and even businesses. Crowdfunding could be expanding into the real estate market. This has important implications for investors. Saunders Dailey is one example. It offers opportunities for properties across the country.
This co-invested fund focuses primarily on connecting community investors to opportunities in their local markets. Although crowdfunding on a national scale can be problematic due to the risks associated with underwriting, this local approach eliminates some of those worries. Many companies use the best real estate crowdfunding platforms.
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Crowdfunding's rise is partly due to investors being more interested in the project. Many investors want to increase their portfolios. This could mean selling a building that has a few dozen units and buying a building with hundreds. This is often done through a 1031 exchange. These investors are searching for sellers who have an open timeline.
Many believe that crowdfunding is a relatively new concept in the real estate industry. However, there is still a lot of potential for oversaturation. Experts estimate that there are 250 crowdfunding platforms currently working in the real estate market, with plenty of potential for growth.
As crowdfunding platforms evolve and grow, it is likely that they will be able to focus on different market needs. These could include types of investors, types and returns, geographical locations or types of real property. It is possible that platforms will try to focus on a specific segment of the market as they enter the market.