While entrepreneurs have used crowdfunding for years to fund a wide variety of projects, it really caught the attention of the real estate industry.
As the term implies, crowdfunding basically means raising money from the crowd (the public or other investors) to fund a project. This provides another alternative source of capital to finance real estate and development transactions. You can also find different real estate crowdfunding platforms online.
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There are different types of strategies that can be applied here. Most experts in the real estate industry are familiar with the concept of raising funds from other investors to finance projects and offering returns. Other options here include ditching some new business to buy, sell, or hold property, or increase rates without giving up ownership or fixed returns.
Group financing can be used to wholesale all types of properties from land and lots to commercial real estate projects across all industries, as well as for homes.
This type of wholesale real estate financing offers many advantages. There are transaction lenders and commercial mortgage lenders who can provide access to short-term cash for this purpose but still require paperwork, slow down the process, and can add their fees to profits while also adding pressure on investors.
It can also be recommended for end buyers and investors. This can help move properties faster and at a higher cost.