2017 Crowdfunding Trends in the Real Estate Industry

Real estate crowdfunding has moved beyond a buzzword into an ever evolving, multibillion dollar industry for both investors and buyers. The market is finally settling in, moving past the hype into an industry with tangible trends and real returns. What are the biggest crowdfunding real estate trends in 2017?

All Eyes on Institutional Capital

pile of coinsWhile crowdfunding efforts are an attractive way to allow personal investors to invest in real estate ventures, institutional investors have more funds to offer. When bigger investors remove their funds, crowdfunding companies take a major hit. That’s why companies like Prosper have renewed their efforts in attracting institutional capital for real estate investments. A healthy mix of individual investors and larger, stabilizing sources of capital is necessary for crowdfunding companies to succeed in real estate.

Make Way for Non-Accredited Investors

New regulations clear the pathway for non-accredited investors, and online crowdsourcing sites should start laying the groundwork to invest their capital. For many companies this means developing eREIT options, which are public, non-traded REITs that give investors flexibility like lower minimums and the ability to withdraw their support at will.

Consolidation Is Key

Crowdfunding is still the hot new trend in real estate, meaning hundreds of startup companies are cropping up each year. As crowdsourcing companies stabilize, the smaller, less successful ones will fall away, allowing for the emergence of clear hard hitters in the real estate crowdfunding industry.

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