Examples of crowdfunding real estate investments

For those looking for an alternative to traditional funding sources, real estate crowdfunding offers a unique option. Crowdfunding platforms use the power and scope of the internet to connect potential investors to a variety of commercial real estate investment opportunities. In contrast to loans secured through large,commercial banks, crowdfunding for real estate (CRE) allows for multiple individual investors to contribute small amounts, making the investment more affordable for them, and offering the developer the potential to raise a greater amount of capital.

For example, an investor could contribute $5,000 toward the purchase of an empty building. Those monies may be used towards renovating the structure. The investor, in turn, would receive an agreed upon percentage of revenue generated by leasing out the refurbished space. Other examples of CRE projects that can be crowdfunded are commercial office buildings, apartment complexes, shopping malls, hotels, and resorts.

Notable crowdfunding real estate investment projects include Three World Trade Center, an 80-story office building in New York City, for which $5 million dollars was raised through crowdfunding. Similarly, in July of 2015, the owners of the Hard Rock Hotel Palm Springs sold a 15% stake in their property to a group of crowdfunding investors for $1.5 million dollars.

Using industry expertise to earn more

These examples, and more, demonstrate that crowdfunding real estate investments offer individuals a way to pool their money with that of other investors, making real estate ownership substantially more affordable, and limiting the potential risk. But, there is more to completing a large scale project than simply raising the capital to build it.

Infobrij is a full-service crowdinvesting platform. That means that we oversee every project we take on from beginning to end. To accomplish this, we have an in-house team of experts with years of experience in both real estate development and investment.

CEO Brian Barbuto brings to the table more than 30 years of experience as a successful real estate developer. Over the years, Brian has been involved in a wide range of CRE projects, including industrial, residential, and resort properties. He has firsthand knowledge of how to initiate a project and then manage it to completion, while ensuring that deadlines are met and staying within budget.

On the investment side, President Glen Rich heads a team of individuals who have over three decades of collective experience in real estate investment companies. They ensure that all projects undergo extensive background checks and a thorough vetting process before passing them on to one of our key lending partners for underwriting.

Diversify and multiply

The lower dollar amount minimums required by individuals investing through crowdfunding in real estate make it possible for investors to participate in multiple projects, effectively diversifying their portfolio, and spreading the risk over many different investment vehicles.

Real estate crowdfunding for investors offers the potential for the average investor to affordably participate in real estate, while reducing one’s risk and increasing returns. At Infobrij, our unique business model of collaboration between investors, sponsors, lenders, and service providers goes that extra mile toward ensuring success for all of our stakeholders.