MIAMI — You can support entrepreneurs’ apps, gadgets, clothing creations, restaurants and more through the exploding phenomenon of crowdfunding.
Increasingly, wealthy crowdfunders — or accredited investors — are turning to a tried-and-true investment class they can see, feel and understand: real estate.CrowdFunding advertizing
The Wall Street Journal reported last month that dozens of real-estate crowdfunding sites have popped up in the past year, including Fundrise and Realty Mogul. Already, these companies have raised more than $135 million in debt and equity for real-estate deals, according to the paper, making real estate the fastest-growing category in the crowdfunding arena, according to Crowdnetic, which tracks crowdfunding data.
“Where else can investors go with a few clicks and get a potentially 7 or 9 percent return on a project that they understand?” said Joanna Schwartz, CEO of EarlyShares, a Miami crowdfunding platform aimed at those investors. “We’re not saying it’s riskless — nothing is riskless — but they get it. Real estate is intuitively understood in a much different way than startup companies are."CrowdFunding marketing
What will probably prime the pump for real-estate campaigns on EarlyShares is its recent exclusive marketing partnership with Property.com, one of the websites run by eRealEstate Holdings, which also runs Condo.com, Houses.com and Location.com. With more than 5 million listings combined, they are a national real-estate marketplace for listing, searching, buying, selling and renting single-family homes, condos and commercial properties.
“We think we can rapidly scale the crowdfunding platform on (Property.com),” said Richard Swerdlow, CEO of eRealEstate Holdings.Kickstarter Marketing
Property.com now has 500,000 commercial listings and 150,000 monthly visitors.
Swerdlow’s company is shifting Property.com from its current mission as a search site to a one-stop shop for commercial real estate; the partnership with EarlyShares offers a service it wants to feature. Once the platforms are fully integrated later in the summer, visitors will see a prominent Invest tab where they can view and participate in crowdfunding-powered real-estate deals on the EarlyShares platform.Indiegogo Marketing
Posted from: http://www.dispatch.com/content/stories/home_and_garden/2014/08/10/1-investors-in-real-estate-getting-hip-to-new-ploy.html