Most people have heard of “crowdfunding” for starting up new companies, funding independent films, and other various ventures, but most people aren’t aware that crowdfunding is now a possibility for real estate investors. It is in its infancy, but it is there, and it seems to be finding some reasonable success so far.
There are a number of companies in this space, including Realty Mogul, Fundrise, Groundbreaker, and many others. The company that we are most familiar with, though, is Groundfloor. Groundfloor uses state crowdfunding rules, so you don’t need to be an accredited investor to make investments. You can also invest as little as $100, and fund the investments directly from your checking account. For those of you looking to do some real estate investing, but not wanting to put massive amounts of capital to work, this is a way to do it. Investment returns can be 12+% on some of the available investments, and every project is being overseen by an experienced real estate investor doing the actual work of flipping, construction, selling, etc.
But for our investor clients, this sort of company is more than just a way to put some money to work for you. It could also be a way for you to get your own projects funded. If you’re an experienced investor, you could talk to a company like Groundfloor to open your own investment project up to crowdfunding to get cash for your repairs, purchase price, etc.
Take a look at some of these companies to get an idea for what they might be able to do for your investing needs.
Disclaimer: Central Georgia Realty, LLC has no affiliation with any of the above companies, but does invest in real estate projects made available through Groundfloor.