As the commercial real estate (CRE) sector grows, so does the avenue for investing and borrowing in CRE; this is where crowdfunding firms come in. Notably, there are four corporations that are making news for the amount of funds raised in a short amount of time, they are: Realty Mogul, Powderly, CrowdStreet and Fundrise. Some of these firms offer bridge loans for both commercial and residential properties as well as the ability to raise capital for cash-flowing commercial real estate.
The question is whether or not these investments will pay out and so far the track record of these companies shows they are delivering returns. An example of a success includes Realty Mogul who has already returned $6.6 million to investors, including both principal and cash flow. “We, today, are returning as expected on all of our debt transactions,” says Jilliene Helman, CEO of Realty Mogul.
It will be interesting to see not only if, but which current real estate firms decide to offer a crowdfunding sector with in their corporation.