Crowdfunding as a real estate financing tool: realities and problems

In this paper, we are going to examine a new form of financing or investment in the real estate market, and of the real estate patrimonial operations that are generated in it, as crowdfunding is: collective or participatory financing system. It is a special type of crowdfunding, with its own characteristics that raises legal questions and problems still unresolved due to the novelty of its regulation and its recent appearance on the real estate scene. In this paper, we intend to define the restricted concept of real estate crowdfunding, and examine its main characteristics, advantages and risks for the investor, to conclude if it is a form of real estate financing that is really alternative to traditional ones or it still cannot replace them though, due to the legal questions that it still raises that may generate legal insecurity for land loans.