Not everyone qualifies for traditional bank financing, while others may simply dislike dealing with them. Such cases are a big driver of the emerging crowdfunding market, which opens up real estate investment opportunities for everyone while providing buyers with financing more quickly. There are numerous crowdfunding platforms available on the market, and Realty Biz News has identified six of the best for those interested in buying commercial real estate.
PATCH OF LAND
Patch of Land helps investors who're seeking alternative sources of finance with appropriate lenders. Its focus is on accredited and institutional investors who're seeking short term, high yield ventures. The company is backed by personal guarantees and first position lines, and originates, underwrites and services loans itself.
ACQUIRE REAL ESTATE
This is a platform that specializes in commercial real estate by identifying, underwriting and pre-funding investment opportunities. Unlike other crowdfunding platforms, Acquire Real Estate is an equity investor which means all of its properties have been vetted. The company then offers these properties to accredited members, and enables transactions to be fully completed online.
Fundrise is another popular crowdfunding marketplace that allows investors to browse through its offerings via filters such as risk and return profile, asset type and location. It helps companies to finance everything from new constructions to value-add development over a range of property types. Investors can complete the whole transaction online, tracking their returns through the platform.
Realty Mogul is a crowdfunding portal that provides access to commercial real estate investing opportunities for everyone. The platform allows investors to invest in opportunities starting at $1,000. Experts vet the opportunities. Over a hundred thousand investors use this platform.
This site lets investors begin with as little as $10,000. They can invest in institutional quality properties on the site. Crowdstreet doesn't charge any joining fees, and real estate developers can use the platform to engage with investors who're fully accredited by the site. The idea is simple, to connect properties with investors nationwide.
RealtyShares offers prospective investors the opportunity to begin with just $5,000. It's platform lists both residential and commercial properties, and doesn't charge any hidden fees. The company says more than $300 million has already been invested through its platform, which allows investors to search for different properties using filters such as asset types, locations and targeted returns.