Crowdfunding Changing Commercial Real Estate

How Crowdfunding is Changing the Face of Commercial Real Estate

Nov 12, 2014Adam Chapnick

The idea of crowdfunding isn’t particularly new. In fact, it may be one of the oldest concepts in civilization. Think of crowdfunding a little like taxes, where individuals pay into a large managed pot for use towards the common good of the collective group. While crowdfunding is voluntary and taxes are compulsory, the concept is at least simple to understand.

Applying the practice of crowdfunding to a post-2012 JOBS Act world and you can see why crowfunding and peer-to-peer lending are taking in commercial real estate. The commercial property business model meets all the criteria of an industry ripe for disruption. It’s one of the oldest industries in the world, it’s run in a way that hasn’t been significantly updated or altered in a century and it’s bloated with fees and large players who are too big to adapt to shifting trends in technology.

It was only natural that commercial real estate would become the next big industry that needed disintermediation, similar to the way Uber tackled transportation and Airbnb shook up hospitality.

To read more how crowdfuning is changing commercial real estate through options, access and savings, read the story in entirety at National Real Estate Investor by CLICKING HERE.

Adam Chapnick is Chief Strategic Officer with Asset Avenue. Chapnick was a principal at Indiegogo, which he helped build into the world’s largest crowdfunding platform, with over 200,000 campaigns in over 175 countries. He also founded Distribber, the flat-fee film distribution service. He has invested in real estate since 2005.

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