Section 15(a)(1) of the Securities Exchange Act of 1934 makes it unlawful for businesses to effect transactions in, or to induce the sale of any security, unless registered as a broker-dealer. Many people assume that funding platforms under Title II of the Jumpstart Our Business Startups (JOBS) Act must also register as a broker-dealer or become a branch office of one. They are wrong. And making an expensive and unnecessary mistake in that assumption.
Starting June 19, everyday investors will be able to back real estate projects with Kickstarter-like crowdfunding initiatives. Many commercial property developers are now using crowdfunding platforms to raise capital for their projects. That means people who want to invest in billion dollar properties now have access to once unapproachable real estate projects -- albeit for very small shares of the business.
Crowdfunding—raising relatively small sums of capital from large numbers of investors via the Internet—is relatively new to the commercial real estate sector, having been used as a capital-raising strategy for fewer than two years. And yet it's already making its mark, with estimates for the capital raised last year ranging from $250 million, according to operators of crowdfunding platforms, to $468 million, as reported by Massolution, a research group affiliated with crowdfunding trade organization crowdsourcing.org.
Real estate crowdfunding is growing at a super fast rate! With new real estate crowdfunding platforms launching and larger investors participating, it seems as though that growth can only continue in 2015 and beyond. Last year was a great year for real estate crowdfunding because platforms hosted some of the largest real estate projects yet, and started to break into the non-commercial markets more.
Ever wonder why the rich get richer while most people’s finances seem to stagnate? Often, it’s due to an investing workhorse called compound interest. The good news is that it’s not just the rich who can take advantage of the power of compound interest. Anyone can if they start investing. And the earlier you start, the better off you’re likely to end up.
CrowdStreet, the commercial real estate marketplace has recently announced the launch of a new product that is designed to help developers with their fundraising efforts. The new product, CrowdStreet Sponsor Direct, will serve as a private-label product platform specifically for real estate developers and operators who wish to provide crowdfunded real estate investor management capabilities and fundraising via their own branded website.
Crowdfunding, or using the Internet to solicit funding from online investors, “has grown from a very new concept to a business strategy that is already producing success stories,” says Darren Powderly, CCIM, cofounder of the real estate crowdfunding platform Crowdstreet.
Vator Splash Oakland 2015 finalist CrowdStreet provides real estate operators, funds and private equity companies a full-service marketplace solution for presenting investments online, marketing opportunities publicly, managing the offer process and maintaining ongoing investor relationships.
Looking to continue its expansion in the commercial real estate crowdfunding space, Portland-based CrowdStreet has launched a new product to help real estate operators and developers stage their own fundraising efforts.
CrowdStreet, a commercial real estate marketplace solution that connects accredited investors with institutional-quality real estate investments, has launched CrowdStreet Sponsor Direct, a new private-label product platform for real estate operators and developers (sponsors) that want to offer crowdfunded real estate fundraising and investor management capabilities on their own branded website.