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How does Crowdfunding Work for Real Estate?

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zahra casey

At its core, crowdfunding means pooling money together to make an investment from a group of investors. And in this sense, we can say that crowdfunding has existed for centuries in the real estate.

This new way of crowdfunding for real estate you can make an investment in two ways,

  1. Equity investments (such as owning shares in some apartment buildings) which in turn will allow investors for sharing the cash flow from the appreciation and rents when the property will be sold.
  2. Loans that being secured by the real estate (just like a bank making a loan), here these loans will pay the monthly interest and therefore investors will be secured by the property.

This shows ‘how does crowdfunding work for real estate’. Now another question is how does crowdfunding work for charities?

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zahra casey
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