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Updated over 9 years ago on . Most recent reply
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How will Real Estate Crowdfunding affect global investment trends
Just wondering what you guys have got to say on this.
Most crowdfunding platforms are still in the US and only allow accredited investors. However there are exceptions popping up slowly, such as as the real estate crowdfunding platform called Groundfloor
So what do you guys think will happen if globally non-accredited investors will be allowed to invest in private real estate through crowdfunding?
Most Popular Reply
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I am excited to see what the SEC comes up with. If they actually limit regulation to allow true crowdfunding by non-accredited investors as the bipartisan bill called for, then it could be a big change.
Historically, many small businesses and start ups funded their businesses with home equity cash-outs. Of course these have really been scaled back. I have seen some equity cash-products rolling out, but it is still very tight. If the new rules are reasonable, crowdfunding could help fill some of this demand and allow for expansion and creation of small businesses.
If the rules are reasonable, I think we will see several new portals pop up quickly, and hopefully the established platforms will adapt quickly to the new changes.
I will be following their decision closely. Hopefully the SEC doesn't kill the effectiveness by creating too many hurdles for small players.