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The Impact of Online Real Estate Investing

By Mike Wheatley | June 8, 2015

The landscape of our professional and personal lives continues to change, and many of these changes are due to advances in technology. They’ve changed the way we work, how business is conducted, our daily communications and even the way we interact with our families and friends. We go to bed with our smartphone on the nightstand and by 9 AM we’ve likely read and responded to a variety of emails and text messages. Today, technology impacts nearly every aspect of our lives.


Whether that’s in the form of text messages, emails, or surfing the net, we’re indeed connected. In fact, according to an article published by Bloomberg, people with access to a smartphone or tablet now spend an average of 2 hours and 57 minutes on them each day - putting phone time ahead of time in front of the television. And this figure doesn't even include the other technologies we have surrounding us each day.

According to the Pew Research Center, as of October 2014, 64% of American adults own a smartphone, 67% find themselves checking their phone for messages, emails, or calls even if they don’t notice their phone alerting them, 44% sleep with their phones next to their beds in fear they will miss something and 29% can’t imagine living without their phones! Think of how different these numbers will be by the end of 2015.

It only makes sense that the way we invest - whether in real estate, stock or bonds - would also be affected by advances in technology. We are, after all, using technology in nearly every aspect of our lives, and there are no indications that will change anytime soon.

Real Estate Investing Online

Real estate investing is not a new topic; we’ve been investing in real estate for generations. In fact, even real estate crowdfunding has been around for decades, as families, friends, business partners and the like have been teaming up to purchase and invest in properties.

However, strategies and the processes by which we partake in real estate investing online have changed drastically with various new opportunities and the rise of real estate technology.

With the passing of the JOBS Act and the advent of new technologies, the traditional methods of investing are being challenged as new, more transparent and efficient methods are being created. Awareness, ease and the increase in popularity of real estate crowdfunding and peer-to-peer lending means that people are becoming more aware and more comfortable. What is known as “alternative lending” is going mainstream.

More Benefits: Quicker, Faster & Better

The rise of real estate investing online and peer-to-peer lending marketplaces also opens more opportunities for newer investors to get in the game. These opportunities include offering diversity and growth for those already investing, and helping developers find funding more quickly for their projects - sometimes within just days. Real estate investing is getting quicker, faster and better - and investors, sponsors and developers are taking note.

What’s more, crowdfunding platforms such as Patch of Land allow for more efficient underwriting, stronger due diligence, and better transparency. Many even prefund the projects to ensure that the process moves at lightning speed. They take all the hard work out of investing and securing funding.

This also opens opportunities for real estate investors to research potential deals via platforms with streamlined user experiences and giving access to a bigger pool of investment opportunities that maybe they didn’t have access to previously. No more digging. Potential investors can pull photos, appraisals and financial statements without ever leaving their computer. Not to mention allowing new investors to spread their investments over several different projects to create a diversified portfolio.

On the flip side, this also means that those real estate developers wanting to get their deals funded no longer have to pick up the phone to pitch their project and hustle for investors.

They no longer have to rely on their industry connections to make a deal happen. Crowdfunding platforms connect investors with cash to developers in need of funding - it’s as simple as that.

Even Traditional Investing is Changing

Even for more traditional investors who prefer stocks and bonds, technology is changing the game. Advances in technology are allowing for quicker communication between investors and brokers, and give instant access to statistics and values for quicker and more informed decisions. Access to alerts and watch lists, streaming quotes, reports, charts and graphs give investors the ability to stay informed and up-to-date from any device.

In essence, real estate investing online with platforms such as Patch of Land is no different, as the majority of these crowdfunding and peer-to-peer lending platforms are 100% mobile-responsive and offer robust data to make well-informed decisions regarding available investment opportunities.

Moving Forward

The introduction of crowdfunding and advances in real estate technology give accredited investors the ability to invest in many different types of asset classes. Whether you’re looking for an equity investment to have some long-term ownership stake in a property or looking for a short-term debt investment, it’s all available online.

When you’re ready to explore the options for real estate investing online, check out platforms like Patch of Land and take a look at the great stuff they’re doing for communities, investors and people just like yourself. You’ll be amazed at what advances in technology have created for the real estate and lending industries and how these changes will affect the way you handle your next investment opportunity!

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
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