Crowdfunding takes the age-old principle of pooling together investors’ funds and brings it into the 21st century. It is primarily an online platform, significantly broadening the base of potential investors. With regards to real estate, crowdfunding makes investment possible for anyone from any where in the world. Numerous real estate crowdfunding sites have sprung up in recent years, and these seven have experienced significant success:
RealtyShares is a real estate crowdfunding platform that provides accredited investors access to pre-vetted real estate investment properties and an opportunity to invest as little as $5,000 into each property. RealtyShares was founded on April 1, 2013, but more than $11.9 million has already invested using this platform. RealtyShares uses advanced firewalls and Secure Socket Layer (SSL) technology (as well as automatic sign-out) to keep your personal information secure. It’s free and easy, and once you sign up, you gain direct access to exclusive real estate investments and high quality real estate companies.
Up to date: RealtyShares has raised $11.9 million from five investors in three rounds of funding.
Patch Of Land is a crowdfunding solution for real estate financing that brings together borrowers and lenders through a simple online interface. Patch of Land not only wants to solve the problem of inefficient, fragmented, and opaque real estate lending by using technology and data-driven processes to create transparency, but it also wants to efficiently underwrite projects for borrowers who are routinely bypassed by traditional lenders. Patch of Land’s Stats Page shows more than $40 million has been invested in loans to date. The minimum investment is $5000.
Up to date: Patch of Land has raised $24.9 million by a crowdfunded raise on SeedInvest plus a Series A led by SF Capital Group.
RealCrowd was built by a combination of real estate experts and some of the best tech minds out in Silicon Valley.It’s an efficient way to invest in professionally managed commercial real estate, with more than $50 million already invest ($100 minimum investment). Founded on February 1, 2013 and located in the heart of downtown Palo Alto, the RealCrowd office is home to innovation, hard work, and world famous Friday afternoon BBQs.
Up to date: RealCrowd has raised $1.6 million from six investors in three rounds of funding.
Prodigy Network is one of the largest crowd-investing platforms in the world. It was founded in 2003 and has more than 6,200 active users who have already invested $300+ million in projects worth more than $850 million, the far majority of which are commercial properties. Prodigy Network’s crowd-investing model was developed as an innovative way to give smaller investors access to large real estate assets. The company is headquartered in New York City, but it also has offices in Miami, Florida; Bogota, Colombia; and Montevideo, Uruguay.
Up to date: Prodigy Network’s projected terminal value of its NYC real estate holdings is $575 million.