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How to Start a Real Estate Crowdfunding Platform Like Reality Mogul in 2024

Real estate crowdfunding is one of the fastest-growing markets in proptech. But to realize this $870 million opportunity, you’ll need both business acumen and robust tech. To help you succeed, we’ve prepared a detailed guide on how to start real estate crowdfunding in 2024.

As a custom real estate and fintech development company , MindK deals with many early-stage startups. This article features some of the best insights gained while working with clients from the real estate and proptech industries.

#1 Understand what real estate crowdfunding is

Crowdfunding is a great way to raise money and invest in real estate projects. Unlike traditional investment, it involves lots of small contributions from a large pool of investors. Real estate crowdfunding (REC) platforms act as online marketplaces that unite property owners and potential investors.

• Equity-based platforms allow investors to get an equity stake when they contribute towards a real estate project. In return, they get a share of the rental revenue generated by the project or its capital profits.
• Lending-based platforms allow users to invest in mortgage loans. These loans will get repaid on a monthly/quarterly basis with a small % going towards the investor.

#2 Analyze the real estate crowdfunding market

According to Google Trends, the public interest in passive income has grown 4x times over the past five years.

Historically, real estate outperforms pretty much any other kind of passive income. Now, there are almost 5,000 organizations in the real estate investment business. Among them, REC platforms are by far the most affordable way to invest in real estate for regular people.

The US remains the world’s leader in the number of real estate crowdfunding sites. Recent changes to European legislation are also contributing to a decade-long expansion of the crowdfunding market, the UK leading the way with 37 REC platforms, followed by France (19) apps, and Spain (13).

The pandemic had a profound effect on the real estate market , although the trajectory is opposite of what is expected from a recession. The recovering economy and high demand from Millenials is fueling a housing boom in the US with more properties sold than any year since 2006.

According to Research and Markets , the real estate crowdfunding market is expected to grow at a stunning CAGR of 33.4%, reaching $868,982 million by 2027.

#3 Study the top players

Over the past 40 years, real estate yielded on average 9.72% ROI vs 5.43% for stocks. Yet, the market boasted a very high barrier of entry – you needed to be an accredited investor with a ton of money.

Everything changed in 2012 when the US adopted the Jumpstart Our Business Startups (JOBS) Act.

By removing the accreditation requirements, it allowed regular people to invest as low as $500 into property. Real estate developers could now advertise their projects to the public and raise funds from a large pool of investors. Investors flock to crowdfunding platforms as the underlying tech gives them 3 key benefits:

• Lower fees.
• Higher diversification.
• Better risk-adjusted returns .

Image source: thegaribaldigroup.com

Fundrise was the first platform to benefit from the new act. Founded by Dan and Ben Millers, the app was first intended as a way to raise investments for the properties they were building in Washington DC. Soon, other real estate companies started contacting the founders to fund their projects.

In just two years, the company helped raise $15 million from over a thousand contributors. The founders have also secured the biggest ever series A round for a crowdfunding platform at $38 million.

According to Forbes , the company is now worth $800 million and manages assets from over 140, 000 investors. Before the project is approved for fundraising, the platform runs a thorough due diligence process with almost 99% of projects being rejected. It also prefunds every project using the company’s money.

Monetization strategy : charge a 0.15% advisory fee + 0.85% annual management fee + a one-time origination fee of 1% – 2% + $5,000 due diligence/closing fee.

RealtyMogul is another American ROC platform founded by Jilliene Helman. When working in wealth management, she noticed that her richest clients were all earning passive income from real estate. As the US passed the JOBS act in 2012, she left her cushy job to found a startup that would make real estate investing affordable for regular Americans.

As of 2015, RealtyMogul was valued at $150 million and had more than 200 thousand registered members.

Monetization strategy : charge a 1%-1,25% management fee + 0.5% – 0.6% REIT fees + one-time legal fees for some properties + fees for lenders and real estate developers.

The real estate crowdfunding market is also flourishing over the Atlantic. EstateGuru is one of the first European REC platforms founded in 2013 with a headquarters in Tallinn, Estonia. The website now has over 86 thousand members who collectively funded more than 2,400 loans.

Monetization strategy : charge a 0.5-1% administration fee + 2.5-4% success fees calculated from the funded volume + 2% secondary market fee.

#4 Understand the crowdfunding regulations

Global crowdfunding is still an emerging field without a common legislative framework. It’s crucial to research regulations and limitations that exist in your target market.

The US , for example, has clear definitions regarding the rights and the status of unaccredited investors. According to the SEC , this encompasses persons with an annual income of fewer than 200,000 USD and a net worth of less than 1 million USD (excluding the main residence).

The regulator allows investors with an annual income of less than 100 thousand USD to contribute 2 thousand USD – 5% of annual income/net worth. Otherwise, investors can contribute to 10% of net worth/yearly income.

In the UK, the FCA crowdfunding regulator defines unaccredited backers (or restricted investors) as those whose investment portfolios fall short of 10% of their assets.

Crowdfunding investors can generally make deals that amount up to 10% of earlier invested funds. This averages to £5 thousand per investor.

In Australia , all backers must go through a registration process and own $2,5 million worth of assets.

In Canada , unaccredited investors must own less than 1 million USD of financial assets or have a net worth of under 5 million USD.

Many countries across Europe have now also introduced laws that protect crowdsourcing investors. In October 2020, the EU Parliament ratified the final edition of Regulation on European Crowdfunding Service Providers for Business . Among other things, it highlights:

• Any crowdfunding business founder can request a license from the “European Enterprise Crowdfunding Service Provider” (ECSP)
• Max amount for a crowdfunding deal is limited to €5 million over 12 months
• A platform founder will have to apply for authorization to a national competent authority in a country of registration.
• Each crowdsourcing offer now has to include a ‘knowledge test’ for ‘non-sophisticated investors’ and a sheet that lists the essential investment information.

Real estate analysts expect the legislation to simplify international crowdfunding and fuel the growth of the REC industry. If you want to learn more about crowdfunding legislation, you can check this guide to REC regulations .

#5 Define your niche

The next thing you should do as a real estate startup founder is to narrow down your target market. Here are a few steps you can take to stand out among competitors:

• Define your target audience. What is their geographic location, age, median income, and other demographic data?
• Check your competitors. What is their target market? What features do they offer? Think as an investor – what is lacking from their current offerings?
• Consider which features could help you win over the potential investors. What can you offer that your competitors can’t?

Robust technology is a good start, especially in comparatively young markets like real estate crowdfunding. A simple and intuitive UX, high speed and cutting-edge stuff like AI-based risk assessment can all help you stand out from the crowd.

Your platform should also feature low fees, high annual returns, diverse offers portfolio, and tax opportunities.

Now that you’ve defined your competitive advantages, there are several types of real estate investment platforms you can choose to build:

• Private, non-traded REITs (Regulation A+)
• Equity investments
• Loan securities & peer-to-peer lending

Early on, it’s a good idea to focus on one type of offering as equity and debt platforms require different workflows. Building all features upfront and paying for the appropriate licenses can be too costly for an early-stage startup. To stand out among your competitors, you’ll need to decide what type of properties to offer on your platform:

• Commercial real estate (offices, hotels & hospitality, hospitals & medical buildings, multi-family commercial buildings, shopping malls, etc.)
• Residential property (flats, luxury homes, condominiums, terraced houses, and so on).
• Fix and Flip (renovating a property and selling for a profit).
• Land, and so on.

To narrow down your niche even further, you can focus on specific industries like education (school buildings), industrial buildings (warehouses, equipment, building units), agriculture (farms and farming land), or traveling (hospitality, cabins, vacation homes).

Mindk has, for example, developed an online system for buying vacation homes in Norway. Due to local regulations, cabins can only be bought via a paid queue. The system allows Norwegian citizens to register for the queue, make payments via Stripe, and see their place in the queue (determined by complex rules like numbers of children in a family).

Norwegian system for buying vacation cabins, developed by MindK

#6 Find the right team to build your platform

Getting your technology up and running should be your next priority. Your options here range from hiring developers in-house to outsourcing your project to freelancers or partnering with a full-cycle software development studio. The latter will typically have all the resources you need to design, develop, and launch your platform.

When looking for a suitable developer, always check their experience, domain expertise, and client references. You can start your search with independent review aggregators like Clutch , Goodfirms , and DesignRush . Finding a reliable tech partner can be an art in of itself. So check our article on how to hire a team of all-star web and mobile developers .

 #7 Choose features for your Minimum Viable Product (MVP)

Big dreams are risky. One of the best ways to lower risks and uncertainties in software development is to select just a handful of key features for the first version of your product. This allows you to test all your assumptions about technology, market, and your target audience.

This approach is called a Minimum Viable Product and we recommend it to most of our clients. It is one of the best ways to launch your product , especially if you enter a highly dynamic market with incomplete requirements.

To help you choose the essential features for your MVP, we’ve analyzed dozens of real estate crowdfunding websites. Here’s what they have in common.

Registration and login

Most investment platforms allow registration for both investors and property owners. You can have detailed registration like in Fundrise + an easy investment process. Or you can have a fast registration like CrowdStreet + a very detailed investment form.

Quick account creation in CrowdStreet

You can also allow users to log in to your platform via Google/Facebook and make the process much more secure with a two-factor authentication (for example, a secure password + a code sent via an SMS). Some platforms like Fundrise also notify users if they detect a log in from a new device for additional security.

Anti money laundering (AML)

Due diligence is essential in crowdfunding. Most platforms like RealtyMogul pay lots of attention to the backer’s identity and their sources of income. They typically request personal information like social security numbers, bank account details, net worth, yearly income, its sources, and so on.

As know-your-customer checks can discourage users from registering, it’s essential to explain why you need all of this information. Another variant is to allow a quick registration and run thorough AML checks when making a pledge.

Property listings

Once a user registers on your platform, they need to see the list of all available properties.

This listing should include property photos and all the necessary information for a real estate investor:

• Name of the real estate developer.
• Investment type (equity, debdt).
• Property location and description (keep it short and add lots of pictures).
• Minimum investment & anticipated returns.
• Distribution frequency & hold period.

Search and filtering

Real estate listings need to be searchable by name, location, and real estate developer. Different filtering options can help investors find exactly what they need among thousands of offerings:

• Location (state, city, ZIP number).
• Risk rating.
• Date of posting.
• Minimum investment amount.
• Expected returns, and so on.

Property pages

Give investors enough information to make the key decision on your platform:

• Property photo
• Project chronology
• Developer company
• Expected returns, adjusted by risk
• Property rating
• Offering documentation
• Frequently asked questions
• Location on a map.

Investment page

If you don’t have a detailed due diligence process during registration, you’ll need to make a detailed, multi-stage crowdfunding real estate investment process. On RealtyMogul, it starts with filling in personal information – name, phone, country of residence, address, ZIP code and so on.

The next step is to set the type of investment account – individual, joint, and such. After that, you can choose the amount to invest and proceed to the payment options.

Payment processing

To support financial transactions, you’ll need to integrate your platform with a banking system or a payment gateway . The latter act as a secure intermediary between the investor’s credit card and your bank account.

They verify the client’s details, check if there’s enough money to make the transaction, and transfer sensitive information in a secure way.

As a real estate development company, MindK worked both with global gateways like PayPal/Stripe and local payment processors like Norwegian Vipps . So if you have trouble choosing a payment gateway for your crowdfunding app, you can check our detailed comparison between the world’s most popular payment systems.  

Source: formstack.com

Property submission page

A crowdfunding website is a two-way street between investors and property owners. Some simpler platforms limit submissions to phone calls. RealityModul, however, has a submission page for property owners. Such a page should include the following information:

1. Company profile – total property value, regions covered, type of equity required.

2. Transaction data – business plan of your equity financing request, amount of equity to collect, asset type for the transaction, anticipated returns, anticipated investor level IRR of the project, physical address of the real estate.

A fundraiser’s dashboard should provide all the important information for property owners. It should display the total funds raised as well as min/max/average investment sums. The property owners should be able to schedule repayments for the backers, export the history of transactions, as well as manage offerings.

Admin panel

In addition to the user-focused features, a backoffice of some kind is essential for managing your real estate platform. In its simplest form, the admin panel should allow you to view all the available real estate offerings with the funding histories, backers information, payouts, and so on.

For simpler management, you could also organize your properties into different categories, add custom tags, and examine the history of all actions performed with the offering.

Accounting and financial reporting is another essential component of real estate business automation . A transaction management panel can help you view the transaction data, including the value, source, type, and destination of each transaction. Wallet management is essential for managing investor payouts. It can help you access transaction history and statuses, view investor contacts, export the data, or create new transactions.

Learn  how to build a real estate app with MindK.

Real estate crowdfunding has come a long way since Miller brothers founded Fundrise in 2012. Although there are hundreds of successful platforms, crowdfunding remains one of the fastest growing proptech markets.

Now that you know how to start a real estate crowdfunding platform, it’s time to seize the opportunity. Research your market, understand your customers, and learn about regulations.

Although now is the best time to start a crowdfunding business, your success will require both defining your advantages and developing a robust technology.

MindK has been helping real estate startups for over 10 years. In this time, we delivered more than 170 custom software development projects. So if you’ve got any questions about crowdfunding or need an experienced team to develop your platform, you can always rely on MindK. Just fill the contact form and we’ll organize a meeting with real estate development experts.

Frequently Asked Questions

To effectively manage risks on a real estate crowdfunding platform, founders can implement a rigorous vetting process for all listings, requiring comprehensive property assessments and financial health checks. Diversification strategies can be communicated to investors, advising them to spread investments across different types of properties and geographical locations. Regular updates on property performance and market trends also contribute to a transparent environment.

Incorporating AI and machine learning enhances user experience through personalized investment recommendations based on individual risk profiles and investment preferences. These technologies can streamline the property valuation process, using historical data and market trends to provide accurate estimates quickly.

Operating internationally requires adherence to a patchwork of regulations. A real estate crowdfunding platform must navigate through various jurisdictions by understanding and complying with local laws regarding crowdfunding, real estate transactions, and investor protections. This might involve working with legal experts in each country to ensure operations are not only compliant but also optimized for local investor expectations and protections

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The Complete Guide to Real Estate Crowdfunding

How creating your own crowdfunding platform can fast-track your company's growth

A combination of the global economy, the ever-accelerating pace of technological advances, and a desire to invest in tangible assets has created a burgeoning interest in real estate crowdfunding. This interest has led to a need for commercial real estate fintech sophisticated enough to serve this growing market and to support the needs of investors in markets throughout North America, Europe, and the Pacific Rim, making international real estate crowdfunding is more available than ever before.

What is real estate crowdfunding?

Real estate developers have traditionally drawn on small syndicates of private investors to facilitate the acquisition, construction, and carrying costs of their projects. Often, opportunities were scarce, even for investors of sufficient means to participate in the financial side of these projects.

In addition, for those private investors wishing to participate in funding a project, extensive knowledge of the market and the developer was necessary in order to sufficiently evaluate the investment opportunity. The due diligence necessary for ensuring that the opportunity was a good one, then evaluating its progress throughout the construction process, was a time-consuming and labor-intensive undertaking.

Perspectives on real estate crowdfunding

For the individual investor, crowdfunding provides the opportunity to take part in institutional quality investment opportunities with a much lower buy-in. It offers the security of rigorous due diligence and vetting and in many cases offers investors the flexibility of on-demand exit strategies without the need for exit upon project completion.

For the real estate companies or investment funds, crowdfunding provides a variety of different strategies for connecting financiers and developers. These include:

Equity Crowdfunding

Investors buy shares in individual assets or broader investment funds , retaining those shares until the investment is monetized. This is a great option for both open or closed ended funds or commercial real estate developers

Debt Crowdfunding

Debt crowdfunding allows lenders to finance an asset or fund , then earn interest along with their principal repayment upon exit. This can be a great option for companies that are looking for diversifying away from traditional financing options.

Benefits of crowdfunding for commercial real estate

Real estate crowdfunding offers a solution to a variety of the difficulties associated with traditional financing options for commercial real estate developers’ large-scale new construction, renovation, and development projects. Crowdfunding allows large numbers of smaller investors to participate in funding an investment, pooling their resources to fund a wide variety of projects. This obviates the need for specialty and market-based expertise by the individual investors as due diligence and oversight is undertaken by the platform’s facilitators.

Why would a commercial real estate fund want to use this method for raising capital?

• Crowdfunding offers access to broader capital opportunities than traditional funding sources. Rather than being dependent on the extensive requirements of bank partners or the relatively small pool of institutional investors for a given market or project, crowdfunding expands the base of possible investors, many of whom will choose to invest in multiple projects over time.
• Real estate crowdfunding allows fund managers to leverage new regulations to raise capital efficiently. For example, Regulation A+ is popular with real estate firms in the US and Canada because of the access it provides to retail investors and the size of the capital raises, up to $50 million in a 12 month period. In the UK, property Investment Savings Accounts (ISA) enjoy widespread popularity that has continued to grow throughout their nearly 20 years of existence.
• For those seeking to future proof their business model, real estate crowdfunding offers the opportunity to industry trends diversify their base of investors by making investment easier and reducing the necessary time commitment. In addition, technology solutions are now available such as white label real estate crowdfunding software for firms to remain relevant without the technology headaches.

How and Why to start your own crowdfunding platform

If you are interested in starting your own crowdfunding platform, there has never been a better time. Advances in technology -- like Katipult’s fintech platform solution -- make this an exceptional time to streamline the entire capital raising and investor management process. What do you need to know to get started and what are the benefits for your company?

• Plan ahead for the rollout of your platform. Understand your existing and ideal investors, define your brand identity, and design a marketing campaign to reach the people who can help you reach your investment goals. Be sure to spend time building a team who can implement your plans effectively as well.
• Choose the right technology for the design, setup and management of your crowdfunding platform. Don’t feel limited by the restrictions of a cookie-cutter product and don’t feel the need to create a custom solution out of whole cloth. A highly customizable product like Katipult’s white label fintech product can provide the custom options you crave and get you launched faster.
• Build in compliance and operational advantages when you choose a syndication software that provides comprehensive solutions to the challenges presented throughout the investment life cycle. Leveraging this type of technology solution saves you time and money throughout the investment process and optimizes research and oversight capabilities as well.

Real Estate Crowdfunding vs. Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts or REITs have been a vehicle leveraged by real estate companies to pool assets; in many cases REITS are publicly traded entities. By going public they have access to more funding sources including individual investors (both accredited and retail investors) via the stock exchange.

Before the passage of the US JOBs Act in 2012 which laid out regulations for crowdfunding, real estate businesses and developers wishing to finance their projects through REITs had to go through the full process of a public listing in order to take advantage of increased access to funding. Now, however, with real estate crowdfunding companies can create funds for a specific deal or a portfolio of projects and solicit investments from all types of investors (retail to accredited) without jumping through the hoops required for a publicly traded entity.

Market data

To fully understand the impact of real estate crowdfunding, consider the following statistics compiled by CFX Investing :

• Between 2012 and 2015, real estate crowdfunding portals grew 12 times, to $34.4 billion. The crowdfunding industry is projected to grow to more than $300 billion by 2025.
• Title III and Regulation A+ is projected to take the pool of possible investors in the US from 8.5 million accredited investors to more than 230 million potential investors.
• The US commercial real estate market encompasses $7 trillion in value. Of that, only $2.5 billion currently comes from crowdfunding, indicating tremendous growth potential.
• Alternative assets like commercial real estate currently account for more than 26% of total institutional portfolios.

Numbers like these indicate not only the current impact of crowdfunding, but the huge growth potential it holds.

Regulatory issues and international real estate crowdfunding

Real estate crowdfunding both domestically and internationally is governed by the regulator of the specific country where the deal is being issued. In many cases there are rules defined for the handling of international investors as well as local investors . Fortunately, the adaptability and customization capabilities of crowdfunding platform software allows real estate companies to market their funds to investors in North America, Europe, and Asia-Pacific markets.

Regulation A+ in the US and the UK’s investment savings accounts (ISAs) provide opportunities for a wide variety of investors to participate in crowdfunding real estate projects simply and seamlessly. This provides benefits both by providing access to institutional quality investment opportunities.

White label real estate software

Rather than building custom software solutions, white label real estate software solutions provide firms the option to brand and customize an existing platform for use in capitalizing their projects and working with their investor network. Katipult’s real estate software provides added capabilities for providing liquidity for real estate companies and opportunity for investors.

Get in touch with Katipult and find out how to put their proprietary technological innovations to work for your real estate company or investment firm. Find out how to leverage exceptional tech to create extraordinary opportunities for your business.

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How to Create a Business Plan for Real Estate Crowdfunding: Step-by-Step

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Embarking on a real estate crowdfunding venture requires meticulous planning and preparation. From conducting thorough market research to assembling a skilled team, this comprehensive 9-step checklist outlines the essential groundwork for crafting a robust business plan. Whether you're a seasoned investor or a budding entrepreneur, these crucial steps will help you navigate the dynamic real estate landscape and position your crowdfunding platform for success.

Steps Prior To Business Plan Writing

Conduct Thorough Market Research and Competitor Analysis

Launching a successful real estate crowdfunding platform requires a deep understanding of the market landscape, target audience, and competitive landscape. Before you embark on developing your business plan, it is crucial to conduct a comprehensive market research and competitor analysis. This crucial step will provide you with valuable insights to shape your platform's features, pricing, and positioning in the market.

According to a report by Allied Market Research , the global real estate crowdfunding market is expected to reach $868.9 billion by 2027 , growing at a CAGR of 14.9% from 2020 to 2027 . This exponential growth highlights the immense potential of the real estate crowdfunding industry, making it an attractive investment opportunity for both investors and entrepreneurs.

As you delve into the market research, focus on understanding the following key aspects:

• Target Audience: Identify the demographics, investment preferences, and pain points of your potential investors. This will help you tailor your platform's offerings and user experience to meet their specific needs.
• Regulatory Landscape: Familiarize yourself with the current laws, regulations, and compliance requirements governing real estate crowdfunding in your target market. This knowledge will be crucial in ensuring your platform operates within the legal framework.
• Competitive Analysis: Analyze the existing real estate crowdfunding platforms, their features, pricing models, and investor engagement strategies. This will allow you to identify gaps in the market and differentiate your platform from the competition.
• Leverage industry reports, market research databases, and expert interviews to gather comprehensive data on the real estate crowdfunding market.
• Conduct surveys and focus groups to directly engage with your target audience and understand their investment preferences and pain points.
• Stay up-to-date with the latest regulatory changes and compliance requirements in the real estate crowdfunding industry to ensure your platform remains compliant.

By conducting thorough market research and competitor analysis, you will be able to develop a robust business plan that addresses the unique needs of your target audience, aligns with the regulatory framework, and differentiates your real estate crowdfunding platform in the competitive landscape.

Identify Target Audience and Their Investment Preferences

Identifying the target audience and understanding their investment preferences is a crucial step in developing a successful real estate crowdfunding platform. By thoroughly analyzing the potential investors, you can tailor your offerings, marketing strategies, and platform features to meet their specific needs and preferences.

In the case of EquityNest, the target audience is primarily composed of small and medium-sized investors who are seeking accessible and diversified real estate investment opportunities. These individuals may have limited capital, but they are eager to participate in the real estate market and benefit from the potential returns it offers.

• Conduct in-depth market research to understand the demographics, financial profiles, and investment behaviors of your target audience.
• Gather insights on their investment goals, risk tolerance, and preferred investment sizes to ensure your platform caters to their specific needs.
• Analyze the investment preferences of your target audience, such as their interest in property types, investment horizons, and expected returns.

According to a recent industry report, 78% of real estate crowdfunding investors are between the ages of 25 and 44 , and over 60% have an annual household income of less than $100,000 . These findings suggest that EquityNest should focus on attracting younger, middle-income investors who are looking for accessible and flexible real estate investment options.

Furthermore, it is important to understand the investment preferences of your target audience. A survey conducted by the National Real Estate Investors Association revealed that 65% of real estate crowdfunding investors prefer investment opportunities with a holding period of 3-5 years , and 52% are primarily interested in residential properties . This information can guide EquityNest in curating its real estate offerings and investment options to match the preferences of its target audience.

• Utilize data-driven tools and analytics to segment your target audience and identify their unique investment preferences.
• Engage with your target audience through surveys, focus groups, and online forums to gather qualitative insights that complement your quantitative research.
• Continuously monitor and adapt your platform offerings and marketing strategies to align with the evolving needs and preferences of your target investors.

By thoroughly understanding the target audience and their investment preferences, EquityNest can develop a real estate crowdfunding platform that resonates with its potential investors, offering them attractive and accessible investment opportunities that meet their financial goals and risk profiles.

Determine the Regulatory Framework and Compliance Requirements

Navigating the complex regulatory landscape is a critical step for any real estate crowdfunding platform. Before launching your business, it's essential to thoroughly understand the legal and compliance requirements that govern this industry. This will not only ensure the legitimacy of your platform but also protect your investors and mitigate potential legal risks.

In the United States, the Securities and Exchange Commission (SEC) is the primary regulatory body responsible for overseeing crowdfunding activities. The SEC has established specific rules and regulations under the Jumpstart Our Business Startups (JOBS) Act, which provide a framework for real estate crowdfunding platforms to operate. These regulations cover areas such as investor eligibility, investment limits, disclosure requirements, and ongoing reporting obligations.

Additionally, individual states may have their own set of regulations that real estate crowdfunding platforms must comply with. It's crucial to research and understand the specific laws and regulations in the states where you plan to operate, as they can vary significantly. Failure to adhere to these requirements can result in hefty fines, legal actions, and even the suspension of your business operations.

• Familiarize yourself with the SEC's Regulation Crowdfunding (Reg CF) and Regulation A+ (Reg A+) rules, as they provide the primary regulatory framework for real estate crowdfunding platforms.
• Consult with experienced legal and compliance professionals to ensure your platform's operations, marketing materials, and investor communications are fully compliant with all relevant laws and regulations.
• Stay up-to-date with any changes or updates to the regulatory landscape, as the rules governing real estate crowdfunding may evolve over time.

By thoroughly understanding and adhering to the regulatory requirements, you can establish your real estate crowdfunding platform as a trustworthy and reliable investment option for investors. This not only mitigates legal risks but also builds credibility and fosters long-term success in the highly competitive real estate crowdfunding industry.

According to the 2021 Crowdfunding Industry Report , the global crowdfunding market is expected to reach a $114.4 billion valuation by 2022 , with real estate crowdfunding accounting for a significant portion of this growth. By ensuring compliance with the regulatory framework, you can position your real estate crowdfunding platform to capitalize on this expanding market opportunity.

Develop a Robust Risk Management Strategy and Mitigation Plan

Launching a successful real estate crowdfunding platform requires a comprehensive risk management strategy to identify, assess, and mitigate potential risks. As EquityNest aims to democratize access to real estate investments, it is crucial to establish robust risk management practices to protect the interests of both investors and real estate developers.

The first step in developing a risk management strategy is to conduct a thorough risk assessment. This involves identifying and evaluating various types of risks, including financial, legal, operational, and reputational risks. By understanding the potential risks, EquityNest can implement appropriate mitigation measures and contingency plans to minimize the impact of these risks on the platform and its stakeholders.

One of the key risks in the real estate crowdfunding industry is the potential for fraud or misrepresentation of investment opportunities. To mitigate this risk, EquityNest should implement stringent due diligence processes to thoroughly vet real estate developers and investment opportunities before listing them on the platform. This may involve conducting background checks, verifying financial information, and assessing the feasibility and profitability of the proposed projects.

• Establish a dedicated risk management team to continuously monitor and assess risks.
• Develop a comprehensive risk register to document and track all identified risks and their mitigation strategies.
• Implement robust KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures to mitigate the risk of fraudulent activities.

Another critical risk factor in the real estate crowdfunding industry is the potential for platform or technology failures, which could disrupt the investment process and compromise the security of investor funds. To mitigate this risk, EquityNest should invest in a secure and reliable digital infrastructure, including robust data backup and disaster recovery systems, as well as comprehensive cybersecurity measures to protect against cyber threats.

Additionally, EquityNest should develop a comprehensive liquidity management plan to ensure that it can meet its financial obligations to investors, including the timely distribution of returns and the ability to facilitate withdrawals. This may involve maintaining sufficient cash reserves, diversifying funding sources, and establishing clear withdrawal policies and procedures.

• Implement a rigorous project evaluation and selection process to minimize the risk of underperforming or fraudulent investments.
• Establish a comprehensive insurance program to protect against various risks, such as professional liability, cybersecurity, and property damage.
• Develop a robust business continuity plan to ensure the platform's resilience in the event of unexpected disruptions or emergencies.

By developing a robust risk management strategy and implementing effective mitigation measures, EquityNest can instill confidence in its investors and real estate partners, positioning itself as a trustworthy and reliable real estate crowdfunding platform. This, in turn, can contribute to the long-term success and growth of the business.

Establish Strategic Partnerships with Real Estate Developers and Investors

Establishing strategic partnerships with real estate developers and investors is a crucial step in building a successful real estate crowdfunding platform. These partnerships can provide access to a pipeline of lucrative investment opportunities, as well as the necessary expertise and credibility to attract investors to the platform.

One of the key benefits of partnering with real estate developers is the ability to offer investors high-quality, pre-vetted investment opportunities. According to a recent study, 85% of investors in real estate crowdfunding platforms consider the quality of the underlying properties as the most important factor in their investment decisions. By aligning with reputable developers who have a track record of successful projects, you can instill confidence in your investors and differentiate your platform from the competition.

• Prioritize partnerships with real estate developers who have a proven track record of successful projects and a strong reputation in the industry.
• Negotiate favorable terms, such as exclusive access to investment opportunities or revenue-sharing arrangements, to ensure that your platform remains competitive.
• Conduct thorough due diligence on potential partners to ensure their financial stability, project management capabilities, and alignment with your platform's investment criteria.

Establishing partnerships with experienced real estate investors can also be highly beneficial for your real estate crowdfunding platform. Research shows that 73% of real estate crowdfunding investors have prior experience in real estate investing , and they often seek platforms that can provide access to a diverse range of investment opportunities. By partnering with these investors, you can tap into their expertise, network, and investment capital, which can help you attract and retain a loyal investor base.

• Identify and approach high-net-worth individuals, family offices, and institutional investors who have a proven track record of successful real estate investments.
• Offer them the opportunity to co-invest in select properties or projects, providing them with a stake in the success of your platform.
• Leverage their industry connections and reputation to enhance the credibility and visibility of your real estate crowdfunding platform.

Ultimately, the strategic partnerships you establish with real estate developers and investors will be a key driver of the success of your real estate crowdfunding platform. By aligning with the right partners, you can build a robust pipeline of investment opportunities, attract a diverse and experienced investor base, and position your platform as a trusted and reliable destination for real estate investments.

Secure Necessary Funding and Financial Resources for Platform Development

Developing a robust and scalable real estate crowdfunding platform requires significant financial resources. Securing the necessary funding is a critical step in the pre-launch checklist for any real estate crowdfunding startup. The platform development, technology infrastructure, regulatory compliance, and marketing efforts all necessitate a substantial investment upfront.

One of the primary sources of funding for real estate crowdfunding platforms is venture capital. According to a report by CB Insights, the global real estate tech industry attracted over $32 billion in venture capital funding in 2021 , indicating the immense investor interest in this rapidly growing sector. Startup founders should leverage their industry expertise, market traction, and growth projections to secure funding from venture capitalists and angel investors.

• Develop a compelling business plan that clearly outlines the market opportunity, competitive advantage, and long-term financial projections.
• Identify and approach venture capital firms and angel investors with a proven track record of investing in real estate technology startups.
• Highlight the unique features and competitive edge of your real estate crowdfunding platform to differentiate it from existing players in the market.

In addition to venture capital, real estate crowdfunding platforms can also explore alternative financing options, such as bank loans, crowdfunding campaigns, and strategic partnerships. For example, a study by the University of Cambridge found that the global crowdfunding market grew by 113% in 2020, reaching a total volume of $304 billion . Launching a successful crowdfunding campaign can not only raise funds but also build a community of early supporters and investors.

Securing the necessary financial resources is crucial for developing a cutting-edge real estate crowdfunding platform that can attract and retain investors. By carefully planning the funding strategy and leveraging various financing sources, real estate crowdfunding startups can position themselves for long-term success and sustainable growth.

Assemble a Skilled Team with Expertise in Real Estate and Technology

Building a successful real estate crowdfunding platform requires a diverse and highly skilled team. Assembling the right team is crucial for navigating the complexities of the real estate and technology sectors, ensuring regulatory compliance, and delivering a seamless user experience.

Firstly, it is essential to have a strong leadership team with a deep understanding of the real estate industry. This includes individuals with extensive experience in real estate investment, development, and property management. These team members can provide valuable insights into the market trends, identify lucrative investment opportunities, and establish strategic partnerships with real estate developers and investors.

Secondly, the team must possess significant expertise in technology and digital platform development. This includes experts in web development, mobile app design, user experience (UX) optimization, and data security. These individuals will be responsible for designing and building a user-friendly, secure, and scalable digital platform that can handle the complexities of real estate crowdfunding transactions.

• Aim to build a team that balances real estate and technology expertise, ensuring a seamless integration of these two critical domains.
• Consider hiring experienced professionals with a track record of success in their respective fields, as well as promising young talent who can bring fresh ideas and innovative solutions.
• Establish clear roles and responsibilities within the team, and foster a collaborative work environment that encourages cross-functional collaboration and knowledge-sharing.

Additionally, the team should include legal and compliance experts who can navigate the regulatory landscape of real estate crowdfunding. This includes understanding and adhering to securities laws, investor protection regulations, and anti-money laundering (AML) requirements. These team members will play a crucial role in ensuring the platform's operations are compliant with relevant laws and regulations, protecting the business and its investors.

Finally, the team should also include marketing and customer acquisition specialists who can develop and execute a comprehensive marketing strategy. This may involve creating a strong brand identity, implementing effective digital marketing campaigns, and leveraging social media platforms to reach and engage the target audience.

By assembling a skilled and diverse team with expertise in real estate, technology, legal compliance, and marketing, EquityNest can position itself as a trusted and reliable real estate crowdfunding platform, capable of delivering exceptional value to its investors and real estate partners.

Design a User-Friendly and Secure Digital Platform for Investments

Designing a user-friendly and secure digital platform is a critical step in building a successful real estate crowdfunding business. The platform serves as the backbone of the operation, providing investors with a seamless and trustworthy experience to access and manage their investments. By prioritizing the user experience and implementing robust security measures, you can establish EquityNest as a reliable and attractive option for real estate investors.

To create a platform that meets the needs of your target audience, it's essential to conduct thorough user research and incorporate their feedback throughout the design process. Understand the investment preferences, risk tolerance, and pain points of your potential investors, and use these insights to shape the platform's features and functionality.

• Conduct user interviews and surveys to gather valuable insights into your target audience's needs and preferences.
• Perform A/B testing and iterative design to continuously improve the platform's usability and user experience.
• Implement a user-friendly interface with intuitive navigation, clear investment information, and seamless transaction processes.

Ensuring the security of your digital platform is paramount in the real estate crowdfunding industry, where investors entrust their financial assets. Implement robust security measures, such as encryption, multi-factor authentication, and secure data storage, to protect your users' sensitive information and transactions.

• Comply with industry-standard security protocols and regulations to safeguard your platform and build investor trust.
• Regularly audit your platform's security measures and stay up-to-date with the latest cybersecurity best practices.
• Develop a comprehensive incident response plan to effectively address and mitigate any security breaches or data breaches.

By designing a user-friendly and secure digital platform, you can create a competitive advantage for EquityNest and attract a growing number of real estate investors. According to a 2021 report by Statista , the global real estate crowdfunding market is expected to reach a value of $300 billion by 2027 , representing a CAGR of 13.4% from 2021 to 2027. By positioning your platform as a trusted and accessible investment solution, you can capitalize on this rapidly expanding market and establish EquityNest as a leading player in the real estate crowdfunding industry.

Develop a Comprehensive Marketing and Customer Acquisition Strategy

Establishing a robust marketing and customer acquisition strategy is crucial for the success of your real estate crowdfunding platform. With the vast potential of the real estate crowdfunding market, which is expected to reach $1.5 trillion globally by 2025 , it is essential to develop a comprehensive plan to attract and retain both investors and real estate developers.

One of the key elements of your marketing strategy should be to identify and target your ideal investor persona. According to a 2021 survey by the World Bank , the majority of real estate crowdfunding investors are millennials, with a significant portion being middle-aged professionals. Understanding the preferences, investment goals, and pain points of your target audience will allow you to craft compelling messaging and tailor your marketing efforts accordingly.

• Conduct in-depth market research to understand your target investors' demographics, investment habits, and pain points.
• Develop buyer personas to guide your content creation and marketing campaigns.
• Leverage social media platforms like LinkedIn, Facebook, and Instagram to reach and engage with your target audience.

In addition to investor acquisition, it is crucial to develop strategies to attract real estate developers and project sponsors to your platform. By establishing strategic partnerships with reputable developers and offering them a streamlined and efficient process for raising capital, you can create a mutually beneficial ecosystem that drives growth for your real estate crowdfunding platform.

Digital marketing should be the backbone of your customer acquisition efforts, as it allows you to reach a wider audience and track the effectiveness of your campaigns. Utilize search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, and email marketing to generate a steady flow of qualified leads and conversions. According to a 2022 study by HubSpot , companies that blog consistently see 55% more website visitors than those that don't.

• Optimize your website for search engines to improve visibility and attract organic traffic.
• Leverage paid advertising on platforms like Google Ads and social media to reach your target audience.
• Develop a content marketing strategy that includes educational blog posts, webinars, and industry thought leadership content.

Finally, it is essential to continuously monitor and analyze the performance of your marketing campaigns to identify what's working and what needs improvement. Utilize tools like Google Analytics, Mixpanel, and Hotjar to track key metrics such as website traffic, conversion rates, and customer engagement. This data-driven approach will allow you to refine your strategy and make data-informed decisions to drive growth for your real estate crowdfunding platform.

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The Definitive Guide to Real Estate Crowdfunding

January 3, 2023

You’ve seen the news headlines about real estate crowdfunding and how it is changing the commercial real estate industry . In this article we’ll cover real estate crowdfunding in depth and give you a solid overview of what is possible with crowdfunding real estate investments and also where you need to be cautious. Note that this article has been updated as of December 2015 to reflect the latest Title III regulations, which allow non-accredited investors to fully participate in investment crowdfunding.

The JOBS Act Gives Birth to Real Estate Crowdfunding

It’s hard to be on the web without coming across an article about some new crowdfunding startup. The power of using a group of strangers to raise money for everything from funding a children’s TV program about the power of reading to finding investors for a promising new commercial real estate venture seem to be the fulfillment of all the promises of what the Internet could be. But, not all crowdfunding is the same. When the JOBS Act was signed in 2012, it was, in part, targeting a very specific type of crowdfunding.

Consumer Crowdfunding and Investor Crowdfunding

Kickstarter is the most famous crowdfunding platform in the world. But, Kickstarter is a consumer facing platform. It does not allow people to invest in companies and products in the strict legal and financial sense. Instead entities post a project on Kickstarter and ask for donations. Often, the companies promise that sponsors will be given rewards at certain levels. But, one thing they cannot promise is shares or any type of financial return on an investment. Instead sites like Kickstarter are really offering the chance for companies to get people emotionally invested and to pre-purchase products, but not to raise investment capital.

While Kickstarter has funded some impressive products, allowing a handful of entities to raise money in the seven figures, it and other consumer facing platforms pail in comparison to what investment crowdfunding can do.

Companies who are seeking infusions of capital used to be strictly limited on who they could approach because of SEC rules about solicitations and accredited investors. But, with the JOBS Act, investment crowdfunding is possible. If the proper procedures are followed, a company that needs accredited investors doesn’t have to be limited to the people in their network. Instead they can recruit investors from anywhere, so long as they meet the SEC requirements for being an accredited investor. The investors in these types of ventures get equity, subjecting them to the risks of losing their investment and giving them access to the rewards of a successful business.

Even more exciting is that investment crowdfunding is not limited to accredited investors. Under certain conditions, regular consumers can receive the benefits of investment crowdfunding. They can place their money in real estate projects all over the world, and grow their nest egg from their home computer.

Crowdfunding is Changing Real Estate Syndication

Prior to the JOBS Act, one of the major ways real estate projects pooled financial resources was through syndication. Syndication has been used for generations in real estate investments. In a real estate syndicate a sponsor would find the property and manage the transaction and put up some small percentage of the capital for the project. Investors would then fund the majority of the project and the profits from the project would be split according to the equity invested.

The problem with syndication is that under the rules that govern investments it was difficult to find investors. Rules limited who you could market to. You almost always needed some pre-existing relationship outside of the investment with a potential investor before you could solicit him or her. Sponsors sometimes would spend months or years making connections and going to networking events with the sole purpose of creating pre-existing relationships to later leverage into syndication possibilities. The investors themselves often had to meet specific requirements before you could legally allow them to invest money in your project.

Real estate crowdfunding uses the same principles of pooling capital as syndication, but leverages the changes in the rules brought by the JOBS Act to make it easier to find investors. Crowdfunding is like syndication, only with more latitude in the solicitation rules and without the need for preexisting relationships between the sponsor and the investors. In some cases you can also seek out investors who traditionally would not have been eligible to invest in a real estate syndicate because they lacked sufficient income or assets to qualify as an accredited investor.

Brief History of the JOBS Act

President Obama signed the bipartisan Jumpstart Our Business Startups Act (JOBS Act) on April 5, 2012. The bill made several sweeping changes to securities law and modernized many aspects of the way startups were treated by the law. One of the biggest changes was the legalization of investment crowdfunding.

The JOBS Act is made up of seven different titles:

Title I: Reopening American Capital Markets to Emerging Growth Companies

Title II: Access to Capital for Job Creators

Title III: Crowdfunding

Title IV: Small Company Capital Formation

Title V: Private Company Flexibility and Growth

Title VI: Capital Expansion

Title VII: Outreach on Changes to the Law

The biggest changes for real estate investing purposes are mostly in Title I through Title IV. These sections of the law also required the most action from the SEC.

Although the law was passed in 2012, various elements only took effect later. The SEC was required to implement several new rule changes before the law could fully take effect. The SEC enacted the last major piece of the legislation with the approval of a set of regulations for Title III in October of 2015.

Regulation D: What Can You Advertise?

The big advantage to crowdfunding over traditional real estate syndication is the ease of finding investors for a given project. But, the SEC has traditionally only allowed advertising and marketing, also known as solicitation, under very narrow circumstances for investment projects. But, crowdfunding will not work without the ability to advertise offerings to investors.

The Regulation D Limits

Regulation D allows smaller companies to raise capital without going through the onerous and expensive process of registering securities with the SEC. However, the trade off for taking advantage of Regulation D has traditionally been Rule 506 of Regulation D. Rule 506 forbids “general solicitation” of investors. This means, among other things, that companies couldn’t use mass market advertising to raise attention about the offer. Under the language of Rule 506 and the narrow interpretations, it also meant that some type of pre-existing relationship be present before a project sponsor could approach an investor with an opportunity.

The trade-off for this general solicitation ban was that non-accredited investors could be approached, so long as they were sophisticated and were given the type of information that would be required in a public offering that was to be registered with the SEC.

The purpose of the ban against general solicitation in private offerings was to prevent fraud and protect investors, especially the non-accredited investors that had access to Regulation D private offerings.

When the JOBS Act was passed, Rule 506 of Regulation D meant that real estate crowdfunding companies couldn’t exist because being on the web in any way that attracted investors would be general solicitation.

2013 Changes to Regulation D

The SEC finally made significant changes to Regulation D in 2013 to begin making investment crowdfunding possible. The biggest change was the formulation of rule 506 (c), which among many other things, allowed for private offerings to begin general solicitation.

However, the SEC remained concerned about possible fraud on the parts of startups and the ability of bad actors to gain control of weak or unsuspecting companies and use them to commit fraud or other kinds of bad acts. As a result, when the SEC created an exemption from the general solicitation ban, it also increased other fraud safeguards, which make it more challenging to recruit investors to a private offering.

The Changes and the Rise of Crowdfunding Portals

While many investors were unhappy that the SEC didn’t make it even easier for private offerings to attract investors, the investment crowdfunding sector began setting up shop. Platforms, including many real estate investment crowdfunding startups, began to raise capital and plan to begin operations now that they could qualify for the exemption to the general solicitation ban.

The 2013 changes redirected the concern of investment projects from the solicitation ban, to the new strict requirements for verifying investors were accredited. The regulations for Title III of the JOBS Act opened up some opportunities for non-accredited investors. This leaves portals the choice of two different groups of investors to target. They can work under the constraints of Regulation D and Rules 506 and 506(c) and pursue accredited investors, or they can work under they even stricter constraints for Title III that allow for the targeting of non-accredited investors.

Accredited Investors and Rule 506 and 506(c)

Most real estate projects are undertaken by relatively small companies or syndicates that use the private offering provisions of Regulation D to avoid the burdensome registration requirements that they would otherwise have to fulfill. Under Rule 506 before the 2013 changes, unaccredited investors could invest in these types of projects, but the company had to obey the solicitation ban. But, as required by the JOBS Act, the SEC amended rule 506 by adding Rule 506(c).

The Burden of Certifying Investors

Rule 506(c) eliminates the general solicitation ban, but only allows accredited investors access to the project. It also requires the company to undertake the responsibility of verifying that every investor is an accredited investor. The verification process can be time and labor intensive. Most companies lack the internal resources to verify investors, and instead increasingly outsource this task to third parties. However, the company itself remains responsible for the adequacy of the verification.

The SEC defines an accredited investor as someone who meets one of two requirements. They must either have a net worth of at least $1 million, not counting their primary residence, or have an income of $200,000 for single investors and $300,000 combined for a married couple, a year, for the past two years.

Verifying that someone is an accredited investor is often more complicated than just looking at a tax return, and can be as involved as a general financial audit. While any number of firms offer to verify investors, there is some concern about firms too anxious to provide positive results for their customers and introducing fraud into the system.

Does Solicitation Increase Fraud?

The stated purpose of the general solicitation ban was to lessen instances of fraud in private offerings. Many at the SEC and in private watchdog groups worried that allowing any exemption to the ban would increase fraud. To counterbalance this new threat of corruption, additional safeguards, including the requirement to independently verify investors, were added. But, it remains unclear if there is any link between solicitation and fraud in the first place.

SEC enforcement actions since the enactment of Rule 506(c) have not shown any increase in fraud, but instead have shown the SEC’s desire to crack down on so called broker-dealers, even in cases completely absent of fraud.

The SEC requires brokers register with the SEC, but the agency seems to be widening whom it considers to be a broker. Anyone who receives compensation, even a company employee, for helping to find investors might need to register as a broker to avoid negative SEC consequences. The SEC seems to be sending the message there is not any exemption to this registration requirement.

Does Rule 506(c) Apply to Crowdfunding?

When the SEC made the changes to Rule 506 it was enacting Title II of the JOBS Act, which does not specifically cover crowdfunding. Instead, Title III of the JOBS Act is the investment crowdfunding part of the legislation. Because the SEC took so long to enact Title III, many crowdfunding portals initially focused only on accredited investors.

506(c) is intended to only cover private offerings to accredited investors. However, many real estate crowdfunding and investment crowdfunding platforms made their offerings fit not under the actual crowdfunding part of the Jobs Act, but instead under the Title II rules.

The official position is that Rule 506(c) does not apply to crowdfunding, as that will require further rulemaking at the SEC. But, so long as companies follow all of the rules and regulations, including those that require investor verification, they may be able to create an offering that looks like investment crowdfunding, but is legally just a private offering.

Regulation A+: What Needs to be Registered?

The SEC issued changes to Regulation A+ as part of its duties under Title IV of the JOBS Act in March of 2015. Like the earlier Rule 506 and 506(c) changes, these regulations do not deal directly with the investment crowdfunding portions of the JOBS Act. Many of the provisions of Regulation A+ opened up real estate investment opportunities to non-accredited investors.

The New Regulation A+ Changes

Regulation A lays out the requirements for registering securities with the SEC. The problem with the original Regulation A is that in addition to the federal registration rules, companies have to also comply with different state registration rules in every single state where the securities are sold.

Regulation A+ has two different tiers. Tier I offerings are any offering under the regulation where $20 million or less in capital is raised within twelve months. These offerings will still require companies to register securities with both the SEC and state regulators. Tier II offerings are those there the company raises more than $20 million and less than $50 million within twelve months. Companies raising more than $50 million are not eligible for Regulation A+ treatment.

Under the March 2015 changes SEC rules will preempt state registration rules for any Tier II offerings. Additionally, anyone can invest in Regulation A+ offerings, no matter what tier. Even non-accredited investors can participate in Regulation A+ offerings.

There is a catch with the new regulations. There are strict limits to the amounts non-accredited investors can invest in these offerings. The amounts vary depending on net worth. However, unlike the burdensome requirements under Regulation D Rule 506(c), investors under Regulation A+ can self certify. This saves companies from what could have been a verification process even more cumbersome than the Rule 506(c) one.

Other changes include the requiring audited financial statements for companies seeking Tier II offerings and requiring investor circulars be pre-approved by the SEC.

How Does Regulation A+ Impact Crowdfunding?

Because Regulation A+ does not have a general solicitation ban and non-accredited investors can participate in these offerings, it seems possible for a real estate project to get capital from a large dispersed group of people in a similar way to crowdfunding.

Any real estate crowdfunding targeted at non-accredited investors will have to meet the requirements the SEC announced in October 2015 as part of its regulations for Title III investment crowdfunding.

What is legal under Regulation A+ is “accredited crowdfunding”. Offers that conform to the rules of Regulation D Rule 506 (c), where only verified accredited investors participate is the type of “accredited crowdfunding” that is legal. But, likely few real estate crowdfunding projects will be pursued on this basis now that the SEC has finally opened the way for investment crowdfunding as long anticipated when the JOBS Act was passed in 2012.

Some platforms were already working on helping to attract non-accredited investor money to real estate projects in compliance with Regulation A+ prior to the most recent regulations. This included providing detailed disclosures and having a system for investors to self-certify. However, the SEC will likely not allow this type of runaround of its crowdfunding regulations now that they have been approved.

What Are the Advantages and Disadvantages of a Regulation A+ Offering?

The biggest advantages of a Regulation A+ offering include being able to use advertising to access more capital from a bigger pool of investors and, in many cases streamlined registration requirements. However, there are several significant downsides to one of these offerings as well.

Regulation A+ only allows for streamlined registration in projects between $20 million and $50 million. If a project is smaller, it will still have to abide by both state and federal registration requirements. If the project is smaller than $5 million, it’s not clear that a Regulation A+ offering can even be made.

The new changes also require a lot of expensive audited reports and regulatory paperwork. Regulation A+ may be a great vehicle for fast growth companies and real estate projects that are large in scope, but the reporting requirements will most likely be too expensive for smaller operations.

Title III Crowdfunding Regulations

After more than three years of waiting, the SEC finally released the proposed regulations for Title III of the JOBS Act. This step will finally allow non-accredited investors to fully participate in investment crowdfunding. The rules will not be in full effect until June 2016, but the process for online crowdfunding portals to register with the SEC will begin the end of January 2016.

The Rules for Investors

While non-accredited investors will be able to participate in crowdfunding, individuals will be limited in the amounts they are able to invest. Investors with a net worth of less than $100,000 can only invest either $2,000 or 5% of their annual income or net worth, whichever is greater, a year. This means that most investors in this category are limited to investing less in equity crowdfunding than they can put into an IRA each year.

Investors with a net worth of $100,000 or more can only invest up to 10% of the lesser of their net worth or annual income a year in equity crowdfunding securities. No investor is allowed to purchase more than $100,000 in crowdfunding securities in any 12-month period.

Investors will not be allowed to sell their crowdfunding securities for at least one year in most circumstances. Investors will not be required to register their crowdfunding securities so long as the issuer is in full compliance with SEC reporting obligations is has less than $25 million in assets.

The Rules for Companies and Sponsors of Crowdfunding Projects

Companies that wish to raise money through equity crowdfunding, whether for real estate investment or any other reason, can only raise $1 million in a 12-month period. Companies will also be required to use a portal or broker-dealer that has already registered with the SEC to handle the offerings.

Companies will also face extensive reporting and disclosure requirements under the new regulations. Companies will need to disclose information about the officers, directors, and owners of more than 20% of the company. The company must describe its core business and how the money raised through crowdfunding will be used. Pricing information such as the method for determining price of the securities, the fundraising goal, and the deadline for the fundraising must also be disclosed to investors.

The SEC also requires companies seeking to make a Title III equity crowdfunding offer to disclose details about the ownership and capital structure. Any select-party transactions must also be disclosed. Companies will need to describe all of the material terms of any indebtedness along with a statement about the company’s financial condition.

In most cases, first time crowdfunding efforts will not require an audited financial statement. However, a reviewed financial statement, at a minimum, will always be required. Under certain conditions after the first round of crowdfunding, an audited financial statement will be required.

The Rules for Crowdfunding Platforms

The proposed SEC regulations require that all equity crowdfunding take place through a SEC registered broker dealer or portal and that the funding takes place exclusively online.

The funding portal is a new type of SEC registered entity. Registration for funding portals will open the end of January 2016. The platforms that will manage the equity crowdfunding process for companies will be required to provide investors with the mandatory educational materials, act to reduce the risk of fraud in the system, disseminate or make available all the information about the offering and the issuer, and provide communications channels to allow for discussions about the offering on the platform. These requirements are on top of the main job of the portal to actually facilitate the offering and sale of crowdfunding securities.

The portals are prohibited from making any investment advice or recommendations. The portals are also banned from soliciting the offers to buy securities offered on the portal website. This includes a prohibition on soliciting purchases or sales of the securities available on the portal website.

Portals are also not allowed to hold, possess, or handle investor funds or securities. Many restrictions also limit the ability of a funding portal to compensate people for solicitations.

Possible Drawbacks to the New Regulations

While no one is accusing the SEC of acting rashly with its latest regulations on investment crowdfunding, many have expressed concerns about the regulations being too limiting.

The two biggest concerns are the $1 million annual limit and the exhaustive reporting and disclosure requirements. For real estate investors the $1 million annual limit immediately takes many types of lucrative commercial and residential real estate projects off of the table. Non-accredited investors may be left with only investing in smaller projects that often have lower rates of return.

The reporting and disclosure requirements will be expensive to implement, monitor, and maintain. There is some concern that when combined with the $1 million annual limit on securities sold through crowdfunding, the cost of the disclosure requirements will be too onerous for most real estate projects.

What Can Legally be Done Now?

The SEC has created two different investment crowdfunding tracts. Non-accredited investors will be limited to opportunities governed by the new Title III regulations. Accredited investors will be able to invest in the kinds of crowdfunding deals governed under the revised Regulation D and Regulation A+.

The Title III regulations will not be in full effect until the middle of 2016. Non-accredited investors will have to wait until then to take advantage of investment crowdfunding.

Even though a full-fledged real estate crowdfunding platform is not yet legal, accredited investors can continue to take advantage of investment opportunities under Regulation D Rule 506 and 506(c) and Regulation A+. Many of these opportunities provide many, if not all, of the advantages of investment crowdfunding to both the investor and the company issuing the securities.

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• 11+ Real Estate Crowdfunding Templates in PDF | DOC

1. Commercial Real Estate Crowdfunding

3. equity-based crowdfunding real estate, 4. issues of real estate crowdfunding, 5. crowdfunding for real estate partnership, 6. crowdfunding commercial real estate policy, 7. crowdfunding real estate potential, 8. real estate crowdfunding financial innovation, 9. real estate crowdfunding opportunity, 10. real estate crowdfunding creativity, 11. real estate crowdfunding associations, 12. real estate crowdfunding services, how can you conduct the real estate crowdfunding, what are the effects of the real estate crowdfunding, investment template.

Real Estate Crowdfunding is quite a new method that uses crowdfunding to gather capital for real estate investment purposes . And through this kind of real estate investment, the investors or the stakeholders are eligible to invest in the different variety of properties without dealing with the people like the mortgage broker, real estate agents and the contact person. Here, he crowdfunding real estate can be a difficult task for the beginners but the templates below can help take smarter decisions.

Step 1: Accredited investors can invest

Step 2: there are regulation for accredited investors, step 3: enough capital to secure, step 4: it has its own investment strategy, step 5: it must be transparent to investors, more in investment template.

Real Estate Welcome Letter

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The 8 Best Real Estate Crowdfunding Platforms

Historically, real estate has been one of the most reliable ways to build wealth.

Yet until recently, due to the upfront costs, skill, knowledge, and time required, this asset class was only an option for affluent investors.

Now, because of real estate crowdfunding, anyone can start investing in real estate.

Crowdfunding real estate platforms work by pooling together investors' capital. After you invest, the platform's staff will take care of the rest — evaluating deals and buying, renting, and maintaining properties.

Additionally, you can get started with as little as $10 (depending on the platform) and invest in multiple properties at once. It's never been easier to build a diversified real estate portfolio.

However, every platform has its own unique style of investing as well as different minimum investment amounts, fees, and requirements, which can make it hard to determine which one is right for you.

After reviewing dozens of these myself, here's my list of the eight best real estate investment platforms, websites and apps in 2024.

A note on accreditation requirements Some of these platforms are only available to accredited investors. You can qualify as an accredited investor if: You have an annual income of $200,000 individually or $300,000 jointly Your net worth exceeds $1,000,000, excluding your primary residence You are a qualifying financial professional Each platform's accreditation requirements are noted in the table below.

A quick look at the best real estate crowdfunding platforms

Disclaimer: Ratings are my opinion.

Keep reading for more detailed breakdowns of why each platform got the above ranking and rating.

1. Arrived: best real estate crowdfunding platform overall

• Our rating:
• Asset: Single-family homes
• Minimum investment: $100
• Accreditation requirement: Any investor

Arrived is my top pick for the best real estate platform because it is:

• Available to any investor
• Extremely easy to get started
• Has a low minimum investment
• Is generating consistent returns
• Is hyper-focused on one type of real estate

The company only invests in single-family homes — it doesn't invest in multifamily buildings, apartments, or commercial properties. It buys them for both long-term rentals and short-term (vacation) rentals.

Source: Arrived

After purchasing a new property, the company will “securitize” it with the SEC, which allows Arrived to sell individual shares.

When you purchase shares of a property, you directly buy ownership in the individual Series of a Series LLC that owns that home asset.

So if you purchase 1% of the shares in a single home offering, you will be entitled to 1% of the economic interests of the asset over time, including rental income and value appreciation.

While Arrived has mentioned potentially launching a secondary marketplace where investors could sell their shares to one another, currently there is no way to sell your shares until Arrived sells the house.

Most properties listed have a 5- to 7-year target investment horizon, so expect your money to be locked up for at least that long.

A note on holding periods It's worth mentioning that 7 years is a common minimum holding period for real estate investing, and holding periods should be taken into account when considering an investment.

Investing on Arrived is a simple, 4-step process. Here's how to do it:

• Browse properties: Browse available listings (there are 410 at the time of this writing).
• Select a property: Choose an investment property.
• Buy shares: Determine an investment amount and buy shares.
• Earn: Collect rental income and watch your price appreciation as Arrived manages your properties.

Primary benefit: With just $100, anyone can start building a real estate portfolio.

2. Yieldstreet: best for investing in multiple alternative assets

• Asset(s): Real estate and 11 others, including art, private credit, cryptocurrencies, VC, private equity, notes, infrastructure, and a multi-asset class fund
• Minimum investment: $10,000
• Accreditation requirement: Primarily accredited

Yieldstreet is the best overall platform for alternative asset investing, offering 11 alternative assets under one login.

Source: Yieldstreet

More than $4 billion has been invested by 450,000 investors since the platform's inception in 2015.

Since then, Yieldstreet has generated 9.7% net annualized returns across all of its investments, while a traditional 60/40 stock/bond portfolio returned just 6.5% annualized returns over the same period.

The objective of investing in alternative assets is two-fold:

• Diversification outside of public markets
• A potentially heightened risk/reward ratio

As an asset class, real estate has repeatedly demonstrated those two characteristics, which is why Yieldstreet's real estate offerings are among its most popular.

To date, Yieldstreet has raised over $875M across 100+ real estate offerings and has repaid more than $350M in principal to investors.

Yieldstreet primarily works with developers but offers every type of real estate deal: commercial, residential, and industrial. Their offerings come in the form of debt financing, equity deals, and a REIT.

Yieldstreet's real estate offerings are only available to accredited investors and have a minimum investment requirement of $10,000.

If you're unsure which assets are right for you, you may be interested in the Yieldstreet Alternative Income Fund .

The fund focuses on generating income from a variety of asset classes and is professionally managed, so you get all the benefits of private market diversification without all the work.

The fund is also available to everyone, not just accredited investors .

Primary benefit:  A wide variety of investment options.

3. Fundrise: best real estate investing app

• Asset(s): Residential and commercial real estate
• Investment minimum: $10

Fundrise is the easiest real estate investing app to get started on. It has a sleek, easy-to-use interface and a minimum investment of just $10.

The company invests in single-family homes, multi-family apartment buildings, and industrial properties. Its current real estate portfolio is worth more than $7 billion, fueled by its 2,000,000+ investors.

Fundrise takes a unique approach to real estate investing by using four strategies to promote well-balanced diversification for its clients, mixing opportunity with reliable income:

Source: Fundrise

Currently, Fundrise's investment team is focused on two trends in the U.S. market: (1) the increased demand for residential space across the Sunbelt and (2) eCommerce-driven industrial spaces.

There are 290 active projects currently available on Fundrise. You can invest in REITs, individual deals, and funds. Some of these will be focused on generating income while others are targeting ROE.

While it's best known for its real estate offerings, Fundrise also has a venture capital fund, the Fundrise Innovation Fund , which buys stakes in private, high-growth technology companies.

Primary benefit: The easiest platform for creating a diversified residential and commercial real estate portfolio.

4. EquityMultiple: best for investing in CRE debt

• Asset(s): Commercial real estate projects
• Investment minimum: $5,000
• Accreditation requirement: Accredited only

Similar to Arrived, EquityMultiple is focused on a single asset class: commercial real estate.

While it has opportunistic and value-add equity offerings, its most popular investments are the Ascent Income Fund and the Alpine Note.

The Ascent Income Fund invests in senior debt positions and targets 11–13% annualized returns.

Each investment is backed by commercial real estate assets, making it a great way for yield-focused investors to gain exposure to real estate via debt.

The Fund has a $20,000 minimum investment.

The Alpine Note is EquityMultiple's most popular investment. You can invest with 3-, 6-, or 9-month term lengths which, as of the time of writing, have fixed APYs of 6.00%, 7.05%, and 7.40%, respectively.

Here's how those rates stack up against Yieldstreet's 9-month note:

Source: EquityMultiple

These two unique offerings have helped the platform grow to more than 48,000 investors across the U.S.

Primary benefit: Easily invest in CRE debt via the Ascent Income Fund or the Alpine Note.

5. RealtyMogul: best for investing via private REITs

• Asset(s): Commercial, multi-family, and single-family real estate

While several other platforms offer real estate investing via REITs, no one is more focused on these investments than RealtyMogul .

REITs provide stable cash flow in the form of dividends , tax efficiencies, liquidity, and easy diversification. Because of these characteristics, they're a popular investment for retirees.

RealtyMogul has 2 REITs: Income and Growth.

Since its inception in 2016, the Income REIT has distributed $33.2 million to its investors, has paid monthly dividends between 6–8% (net of fees) for 86 consecutive months, and generated a return of 7.79% per year.

Source: RealtyMogul

The Growth REIT is more heavily focused on capital appreciation. It has returned 6.4% annually since its inception and has distributed $11.3 million to investors.

Both REITs have $5,000 minimum investments and are available to all investors, accredited or otherwise.

Primary benefit: Simple, tax-efficient, and expertly managed private REIT investing.

6. CrowdStreet: best for traditional CRE investing

• Asset(s): Commercial real estate
• Investment minimum: $25,000

CrowdStreet has invested more than $4.2 billion into commercial real estate, making it one of the largest crowdfunding platforms in the world.

Over the last 11 years, CrowdStreet has funded nearly 800 deals, 168 of which have been sold. Of those 168, the company has generated a 17.9% internal rate of return with an average holding period of just 3.1 years.

CrowdStreet's team of experts — arguably the company's greatest asset and differentiator — works directly with top real estate developers to bring exclusive projects to its investors.

These projects include hotels, multi-family apartment complexes, storage facilities, industrial parks, and more.

You can invest in individual deals or buy into one of CrowdStreet's Diversified Funds.

Source: CrowdStreet

Given CrowdStreet's track record and team of real estate professionals, you may be wondering why it's not higher on the list.

CrowdStreet's minimum investment of $25,000 is restrictive for many investors, and it's only available for accredited investors. If you're an accredited investor and aren't inhibited by the high minimum, CrowdStreet could be your best option.

Primary benefit: A team of real estate professionals with a track record of high performance.

7. Streitwise: best non-accredited REIT investing platform

• Asset(s): Private REITs
• Investment minimum: $3,505

Streitwise is another investing platform that is available to both accredited and non-accredited investors alike. Of all the websites on this list, Streitwise doesn't seem to be as popular as it should be and is flying under the radar just a little bit.

You can invest in individual deals or the Streitwise REIT, which paid out a 7.2% dividend in 2022:

Source: Streitwise

There are a few things about Streitwise that stand out to me, which is why I feel it deserves a place on this list:

• Jeffrey Karsh, the founder and CEO, has $20 million of his own money in the REIT.
• Streitwise's sponsor — Tryperion Holdings — has generated an annualized 25.4% IRR on all realized investments (as of Q3 2023) since 2013, which is not a bad track record.
• The platform is easy to navigate and there are the right number of offerings, to where you can choose which one is best for you without being overwhelmed by options.
• Streitwise is available to both U.S. and foreign investors.

Primary benefit: An excellent track record over the last 10 years and has the potential to become very popular over the next few years.

8. 1031 Crowdfunding: best for investors with 1031 exchanges

• Asset(s): DSTs

If you're reinvesting real estate funds through a 1031 exchange, this is the platform for you.

1031 Crowdfunding specializes in providing real estate investors with funds from 1031 exchanges access to crowdsourced real estate investments.

If you don't know, a 1031 exchange allows real estate investors to sell an investment property and use the proceeds to buy another investment property with no immediate tax consequences.

By deferring the taxes owed from the sale, more capital is freed up for investments in bigger, more expensive properties.

💡 A Delaware Statutory Trust (DST) is the type of legal entity used to enable crowdfunded 1031 exchanges.

The most common complaint about 1031 Crowdfunding is the relatively high fees (5–7%), which are built into the property contracts and not explicitly paid by investors. This is a typical fee structure for this type of tax-deferred investing.

For many investors, the value received from the tax savings and the quality of available investments more than offset the fees charged.

Primary benefit: Crowdsourced real estate investments that meet the obligations required for investors who are deferring taxes through a 1031 exchange.

What is a real estate crowdfunding platform?

Before creating an account and making your first investment, it's important to know the details of how these platforms work.

Real estate crowdfunding platforms work by pooling funds from thousands of investors to invest in real estate projects and properties.

These platforms either serve as the investors and managers themselves or act as the middlemen, connecting individual investors with real estate developers.

The platforms may evaluate deals, make offers, buy properties, renovate, or develop, and then list the properties for rent or sale.

After a project passes the due diligence process, investors can buy in and will then collect their portion of rental income and, when the deal is closed, any capital appreciation.

In this way, you can invest in real estate with nothing more than an account and as little as $10, leveraging the years of transaction experience and skills of the professionals working on the platforms.

What are the best real estate investor websites?

Real estate investor websites and apps fall into three main categories:

Crowdfunding/investing: The best way for investors to get exposure to the real estate market without all of the hassle and with easier diversification.

Educational: Best for those who are studying to become independent real estate investors or increase their knowledge.

Listing: Best for investors who want to quickly find and evaluate individual property listings in any zip code.

This article is about the best real estate crowdfunding platforms, not educational or listing websites. If those are what you're interested in, here are a few recommendations:

How we chose the best platforms

When evaluating investment products and services, we consider the following:

• Core offering: How good the product or service is.
• Cost: Overall price, value for money, average cost per month, and any hidden fees.
• Usability: What the interface looks like, whether the site is easy to use and navigate, the inclusion of modern design elements and features, and accessibility.
• Credibility: Quality of information and data as well as company and brand reputation.
• Audience: Who the product is for, the range of uses and applications, whether it actually works for its target audience, if it's the best option available, and any limitations therein.
• Offers: Whether there is a special offer for signing up or any discounts.

Final verdict

With daily volatility in the stock and bond markets, the draw to real estate investing is clear — everybody could use some stable capital appreciation and reliable cash flow.

While there are a number of real estate investment websites to choose from, all of them have slightly different offerings and strategies.

Now you should have a better understanding of which one is right for you based on your investment objectives, time horizon, and financial goals.

Regardless of your exact personal situation, it's never been easier to build a diversified real estate portfolio.

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An Effective Crowdfunding Business Plan, Made Simple

The truth of the matter is that small businesses cannot launch without adequate funding. Fortunately, there are different methods to securing funds for your business, such as crowdfunding.

Crowdfunding is the term used when a project or business is funded through the help of many small sums from angel investors and donors, typically on the internet. According to Fundera , in North America, nearly $17.2 billion is generated through the crowdfunding industry each year.

This can be a viable option for some small businesses. However, there are important steps to take when creating an effective crowdfunding business plan. Luckily, we are here to help!

We’re going to cover what to include in your business plan, possible funding sources, and how to write an effective crowdfunding campaign.

What to Include in a Crowdfunding Business Plan

Creating a crowdfunding business plan is not a one-size-fits-all situation, so it can be confusing trying to decide what to put into your plan. When creating a crowdfunding business plan, some things you may want to include are:

Executive Summary

An executive summary is vital to any business plan. It clearly describes the goals and purpose of a business in a short section of text. Include objectives, products or services provided, and growth potential.

Mission Statement

A mission statement is at the heart of every business. What are you trying to achieve and why? Write a strong mission statement that stands as a solid foundation, and refer back to it often when making important decisions.

Similar to a mission statement, a vision is broader in scope and outlines your venture. What are your priorities? What are your hopes for the future? And, who do you want to impact?

Market Research

Market research is important to include in a crowdfunding business plan because it can help project your future success rate and help you devise a solid plan. Look into what competitors have done in the past and measure their success to use as guidelines.

Promotion Plan

Finally, you need to include a plan for how you will promote your campaign. Crowdfunding campaigns do not thrive unless their visibility is high. You need people to donate and back your business to achieve your goals. How will you promote your campaign? Through social media platforms? Word of mouth? Perhaps, both.

Crowdfunding Sources

There are a plethora of websites in the crowdfunding industry. We are going to highlight just a few of the more popular ones and their type of crowdfunding that may work well for your business.

• GoFundMe . Likely you have heard of GoFundMe, the crowdfunding website founded in 2010. It is one of the most popular sources in the crowdfunding industry and is a great option to consider because it is easily recognizable.
• Kickstarter . This is another crowdfunding platform that has gained popularity over the years. Their mission is to “help bring creative projects to life.”
• Indiegogo . Indiegogo is a crowdfunding platform that has raised over $1 billion for projects from technology to dance.

These three are great options for crowdfunding campaigns. Now, we will share how to write a crowdfunding campaign sure to grab the attention of potential investors.

How To Write a Crowdfunding Campaign

A successful campaign will be informative, well thought out, and appealing to a potential crowdfunding investor. Next, we will outline the best way to write a crowdfunding campaign.

Tell Your Story

Share with potential backers the story behind your business venture. Why are you starting or expanding this business? Be creative here and tell a compelling story about how your business idea came to life and why you’re making this funding request. This will hook a potential investor and persuade him or her to keep reading your crowdfunding campaign.

Summarize Your Business’ Values and Mission

Make sure to include your values and mission statement in the campaign. You want investors to have a clear understanding of your business and why it is worth supporting. The more an investor can connect with your business, the more likely you are to achieve crowdfunding campaign success.

Include Marketing Strategies and Launch Information

It’s important to write about your business strategy and include a timeline for launching the business. What are your funding goals, and why? A potential investor will want to know where the business is going and how you are going to get there. Show investors how you will promote your business and foster growth.

Highlight Your Team

This is a great opportunity to highlight your team and what makes your business unique. Share the expertise your team members bring to the table. What skills and experience do you and your team have that will help your campaign gain credibility?

Outline Perks for Investors

Reward-based crowdfunding is extremely common for crowdfunding business campaigns. If you are going to be supplying backers with prototypes of your product, list the financial contribution requirements here. Having incentives for different amounts of financial support can increase the likelihood of people engaging with the campaign. Consider reward-based crowdfunding for your business campaign to raise your chance of getting investors.

Drawbacks to Crowdfunding

Crowdfunding may sound intriguing, however, there are definite drawbacks to this method of funding your business. Some of these drawbacks include, but are not limited to:

• Fees. Crowdfunding sites have to make a profit too. In exchange for using their platform, these websites usually charge a fee that ranges from 3-8% of your total donations. Additionally, some crowdfunding sites charge a payment processing fee of 3-5% for automatic transfers.
• It Takes Time. Depending on the scope of your financial needs, crowdfunding a business can take a very long time. Compared to taking a loan, this method can be incredibly slow.
• It May Not Succeed. There’s also no guarantee of successful completion. You may not be able to secure the funds you need for your business.
• Competition. Competition on crowdfunding sites can be fierce. There are countless campaigns running at the same time that may take away visibility from yours.
• Meeting the Threshold. Some crowdfunding websites require you to set a threshold or goal you need to meet to be considered “fully funded.” If you don’t meet the threshold you set, you won’t receive any of the contributed money.

As you can see, using crowdfunding to finance your business may not be the best solution. Read on to learn more about another option for funding your business.

Finance Your Business With LendThrive

Want a simple, hassle-free way to fund your small business? Skip out on the risk of the crowdfunding industry and partner with LendThrive to make your small business dreams come true. Starting a business is an exciting venture, and securing proper funding is essential to success.

LendThrive offers fixed rate business loans that are fast and flexible to suit your specific needs. We believe you shouldn’t have to worry about giving up ownership to gain access to the finances needed to grow your business. LendThrive loans allow for financial stability and pride in your business.

Contact us for more information about funding your business with LendThrive!

Further Reading

When shopping for a loan, what are you buying?

Business loans come in all shapes and sizes, just like small business needs. This post will help you organize and...

SBA Loans 101

Overview of how SBA loans work and what you’ll need for applying, as well as how to apply and suggestions...

Why Your Story Matters in a Loan Application

Your loan story is the place to highlight your business’s achievements as well as address any issues that you’re working...

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