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Crowd funding has indeed marked its rightful place in the business industry. Right now, it has been referred to as the new evolution of real estate. More and more business individuals and entities have started to take advantage of this method to raise capital. Likewise, many investors have taken interest in making an investment through crowd funding. Subsequently, different crowd funding portals have been launched to serve for this purpose. Considering that the concept has existed quite a long time ago, why is it only recently that it garnered this much attention? To start with, what does crowd funding for real estate actually mean? It appears that, by developing the concept of microfinance, Mohammed Yunus consequently paved the groundwork for crowd funding. Basically, microfinance and crowd funding are two practices that has great similarities. Both are used for one party to acquire the capital that they need from several other entities. The objective is to help an individual who is not able to come up with the funds that they need though conventional methods. Now, through crowdfunding real estate, a company can accumulate the capital they need by allowing investors to purchase an equity ownership. The system of crowdfunding real estate was made legal through the Jumpstart Our Business Startups (JOBS) Act. The legislation has opened the opportunity for, what are referred to as emerging growth companies (ECGs) to use crowd fund investing. Back then, only accredited investors, individuals that accrue more than $250,000 in income can invest in private debt and equity trades. With the JOBS Act, the restriction was revoked and soon unaccredited investors can invest in crowdfunding real estate properties. What happened was, any individual of any net worth or income level has been allowed to buy shares of their own from the investments under crowd funding. Presently, there are many online portals that execute crowd funding online. In the recent years, these portals have made adjustments to their service to be of better aid for any given business segments and purposes. Many of them have popped out early but it was only lately that some portals that focused on real estate crowd funding have surfaced. They give benefit to both the entities having their properties crowd funded and the investors who want to have a share in these properties. Fundrise and Realty Mogul are two of the most widely known crowd funding portals for real estate. Crowdfunding real estate has indeed caught on intensely in today’s business industry. There is just no denying the many advantages that it presents for real estate investment schemes. As a result, crowdfunding real estate quickly rose to prominence and is now a heavily sough after approach in the field of property investments and acquisitions. With all the efforts that the online portals are exerting to present better advantages for their clients, it can be expected that the concept will soon go through more progressions. Real estate crowd funding could possibly only be on its way to show its true potential.
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