Institutional Investors Are Getting In On Real Estate Crowdfunding

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Individual investors could get pushed out of real estate crowdfunding soon, as institutional funds take a bigger slice of the action.

Real estate crowdfunding has come a long way since it was born in 2011, when platforms like RealtyShares and others focused on raising big sums from lots of little investors.

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Now, institutional investors are starting to take note, throwing big sums into the sector, The Real Deal Reports. Ray Sturm, who co-founded RealtyShares in 2013, recently unveiled AlphaFlow, the first investment fund focused exclusively on real estate crowdfunding.

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Other investment vehicles like London-based P2P Global Investments, which invests in crowdfunding opportunities more generally, have recently begun to focus more heavily on real estate.

Real estate crowdfunding platforms love the massive amounts of liquidity this newfound interest can provide to their end users.

However, doubts linger that the original concept—providing prime investment opportunities for smaller investors—is being forgotten amidst a deluge of big money. [TRD]

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