Crowdfunding Real Estate Investing

And therein lies the issue, RE financing is unique by terms, collateral, applicable laws and servicing. It's not the same as financing cars at the "You're Approved Car Lot".

Saying, controls in place is really an understatement. I was a mortgage broker and used milioons in private money. The fact that I could have a hundred investors with small amounts would not be as efficient as 3 or 4, I was the guy that put those "controls" in place, no way would I want 20 people involved. Getting money to lend was not the problem.

Now, if you could have 5 people who got together as a crowdfunding bunch, they did thier own stuff and one knew what they were doing, you might have something for one investor. It's my understanding that investors in crowdfunding are not qualified investors, and the amounts may be limited, so amounts to raise for RE is another issue.

In theory it may sound good having a hundred investors buy a house, in reality, it would be a nightmare and not profitable for the sucker in charge. Might be good for a non-profit, but I don't see it all in the commercial aspects of RE.

Source: http://www.biggerpockets.com/forums/48/topics/84708-crowdfunding-real-estate-investing

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