Commercial real estate has been the top industry nowadays, but for many investors this domain is almost unknown because of the various restrictions which allowed only a selected group of people to invest in it. Commercial real estate basically deals with any property which serves the purpose of getting some king of income. With the advent of crowdfunding commercial real estate, this domain has become accessible to even small investors.
Crowdfunding commercial real estate has helped small and new investors to participate in this domain. With crowd funding commercial real estate, the number of people investing in commercial real estate has increased in the past few years.
How is crowdfunding commercial real estate beneficial?
In the past, commercial real estate was limited to only some investors who had private contacts and had enough annual income to be able to invest a large amount of money in real estate. Individual and small investors were often not able to participate in investment in this domain. With the enactment of the JOBS Act in the year 2012, which led to the foundation of crowdfunding commercial real estate.
Crowdfunding commercial real estate allowed individual as well as small investors to contribute in this field and the money invested could even be as low as some thousand dollars. With the advent of crowd funding commercial real estate, this forbidden field became accessible to all the individual as well as small investors. Crowdfunding commercial real estate has many exclusive features and is in no way similar to other types of crowdfunding and this is the reason it has been able to attract a large number of people.
There are several crowdfunding platforms available today which helps in overcoming the problems related to crowdfunding commercial real estate. It has become easier to connect with investors and make them contribute in crowd funding commercial real estate. Crowdfunding commercial real estate provides the investors the opportunity to invest in various types of commercial real estate like healthcare facilities, office buildings, residential buildings, etc.Investing and owning a commercial real estate also offers some advantages and benefits related to tax payment.
With the help of crowd funding commercial real estate, the investors as well small companies are gaining some advantages. Crowd funding commercial real estate has given an alternate and easier ways to these small companies to raise funds. Crowdfunding commercial real estate helps them in avoiding the hassle caused by other traditional sources of money.
Even though crowdfunding commercial real estate has many benefits, it doesn’t come without a few shortcomings. Investing in crowd funding commercial real estate is not as flexible as in stocks or anything else. Also most of the sites for crowdfunding commercial real estate serves only Accredited Contributors which again restricts it to a particular class of the public.
Even with these few disadvantages, crowdfunding commercial real estate has given a new face to how an investor can contribute in real estate and how small companies can raise the funds required. The world of commercial real estate is changing and becoming more accessible through online medium and this change was highly awaited.
