Five Reasons Why Crowdfunding Is About to Take Off

The crowdfunding real estate market is finally about to make a name for itself–and Bisnow has a front row seat. This Thursday we’re releasing our free video featuring Fundrise CEO Ben Miller to get you up to speed on all the latest developments. Meantime, here are five reasons you can’t afford to ignore crowdfunding (the partially crowdfunded Hard Rock Hotel Palm Springs in California, pictured).

1. Crowdfunding could shake up the industry like Kickstarter has done for unknown artists. Thanks to the Internet’s arrival in real estate funding, we could unlock $3.5T in investable dollars.

2. It helps boost job growth and revenue for entrepreneurs. States are catching wind of these perks and stepping up to loosen securities laws.

3. The online platform cuts out middlemen and gives developers a direct, fast pipeline to capital. Since investors move in flocks, it just takes a couple good returns for word of mouth to take over.

4. It’s going global: Fundrise was first, but new entrants are on their way. Chicago attorney Jordan Fishfeld is working to broaden the definition of “accredited investor” to bring foreign investors into the mix.

5. Infinite scalability: It doesn’t take long for crowdfunding companies to snowball. LA-based Patch of Land is active in eight states after one year, with over $100M/month in applications for funding.

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