Using crowdfunding for real estate development projects

The building of large scale projects like multifamily housing or office space has long been an excellent way to make a profit. Until a few years ago, however, only relatively wealthy and well-connected investors could participate in the high returns generated by commercial real estate projects. Projects were funded locally and advertised only by word of mouth, and the minimum amount of investment was $100,000. All of that changed with the advent of crowdfunding for real estate development projects.

Now accredited investors with as little as $10,000 can participate in commercial real estate projects through online crowdfunding sites. These web platforms allow investors to research and select projects that fit their criteria and will enhance their portfolio. All of the information, from extensive background data on the sponsor to full transparency regarding the financial specifics on each project, is available at your fingertips.

At Infobrij, we believe that real estate crowdfunding is an excellent model. But we take it one step further. Not content to simply put together the funding on a project and walk away, our qualified team of commercial real estate experts stays involved throughout the project, offering valuable advice and support along the way. For that reason, we instead refer to our business as “crowdinvesting.”

Minimizing risk, maximizing potential

Diversification is key to building a successful investment portfolio. The ideal portfolio consists of a combination of high-risk/high-return investment vehicles and safer, lower performing ones, all of which yield a steady rate of return.

As a small investor, one of the ways to accomplish this goal is by purchasing shares in a mutual fund, a product that is already highly diversified. The downside is that the yields may be very modest, and profits realized only in the long term. But what if you had access to the same better performing investments that the larger, institutional investors do?

Crowdfunding for real estate investment sites provide you with the rare opportunity to buy into projects that have traditionally been available to institutional investors alone. These crowdfunding companies, like Infobrij, employ a rigorous vetting process, performing in-depth studies on the project’s feasibility, conducting extensive market analysis, and assessing profit potential on each project they undertake. This careful attention to detail serves to reduce the potential risk. In fact, not all of the crowdfunding comes from outside investors. Infobrij is so confident in the projects we underwrite that we invest our own company funds in them.

Don’t fall behind schedule

This new platform through which accredited investors can participate in real estate development projects is growing rapidly in popularity. As more people become aware of the excellent opportunities to grow their money, the market will increase exponentially.

Scroll through the site to read more about crowdfunding for real estate development and discover how you can be a part of this exciting new trend.