Real Estate Crowdfunding??

Hey guys,

Are you familiar with Indie gogo? Go fund me? Kickstarter?
Now this crowdfunding platform is coming into the world of REI.
This is suppose to be the next big thing in investing, allowing everyday people to get into
the real estate game with minimal investment. Its also a new innovative way for projects to get funding.
But do you think it could be a SCAM? Mark Cuban thinks so. In a recent Shark Tank episode one of the new 
REI Crowdfunding companies "Tycoon" pitched the Sharks and got a pretty bad response. (video link below)
What do you guys think?
Would you invest using this method? Could it be a good way to build up to larger more traditional real estate investments?


Michael Lane Jr.

Sacramento's Real Estate Specialist 

MichaelLaneJr.com

Comments

  • I have had some contact with a couple RE crowdfunders. In my experience they are similar to hard money. I am not sure what value they are adding over a hard money lender. 
    Creator of Invest Four More
    If you want more help with your investing, check out http://investfourmore.com/blueprint-for-successful-real-estate-investing/


  • Would you consider investing with a crowdunding company? 
    Michael Lane Jr.

    Sacramento's Real Estate Specialist 

    MichaelLaneJr.com
  • I would be hesitant at this point, because it is so new and I don't know why experienced flippers would use them. 
    Creator of Invest Four More
    If you want more help with your investing, check out http://investfourmore.com/blueprint-for-successful-real-estate-investing/


  • I agree, I think people get really caught up in the initial hype and end up not making smart decisions.
    Michael Lane Jr.

    Sacramento's Real Estate Specialist 

    MichaelLaneJr.com
  • Does anyone have experiences or opinions to share about Realtyshares.com??  They seen to have a due diligence process to accept projects for funding??
  • edited June 2015 Posts: 0
    Crowdfunding sometimes need guidance. There is a review in ayudos review that might help you guys.
    Help others achieve their dreams and you will achieve yours. ayudos
  • There's an interesting company in this space called "Patch of Land" and there's a great video here around their service: http://bit.ly/1StWZSL

    It's primarily focused on investors with a good bit of capital, but their model definitely sound very interesting!

    Kind Regards
    Mads Singers

    Operations Director - Real Estate VA 2 Hire
    Web: realestateva2hire.com
    Email: [email protected]


  • The real estate concept is growing and it requires more improvement. Crowdfunding does not work on its own and it requires professional marketing to make it happen. Investors are required to choose right platform and they must have other sources of capital.
  • I agree with @alicesmith, it is key to choose a platform that works best for you and offers the type of deal that best diversify your investment portfolio. At the same time you will need to evaluate the deal as well. I created a quick real estate investing checklist to do just that. At the end of the day, you can find a platform that allows you to invest $1000 dollars to get a feel for what real estate crowdfunding can do for you.
    Learn to invest better with RealtyeVest
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