Real estate investment and financing: Crowdfunding

Real estate investment has been observed to require substantial initial capital outlay, which can be obtained from various sources. With the rise of Internet technologies and social media, there appears a new way to finance real estate projects, as well as a new and much wider way to access new investment opportunities. Crowdfunding seems now to have been successfully applied to new ventures such as technology start-ups, yet is laying its way to the massive real estate industry. The purpose of this article is to explore real estate crowdfunding and describe advantages and disadvantages of this new concept. Real estate crowdfunding is a new emerging phenomenon of real estate financing and investment. Therefore, is very important to analyze it in order to properly prepare for possible opportunities and threats. Study results are obtained through qualitative research methods, such as literature analysis, content and sentiment analysis, making lists and categorization, and observing online interview and conference material where real estate business leaders were interviewed. Our findings provide a deeper understanding of the abilities and limitations of the real estate crowdfunding usage. We summarize that crowdfunding can become a popular and attractive way to invest in real estate, and at the same time provide capital for new real estate projects. Thus, this conception needs future research in order to gain a deeper understanding of how it will affect the economy as a whole, and what regulative rules should be approved to achieve satisfying results.