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The world of finance has jumped to a new whole new plane with crowd funding as its catapult. While it should be kept in mind that crowdsourcing funds has been a long practice, it is only starting to take center stage today, becoming a fresh paradigm in the field of business and finance. Crowdfunding real estate projects, startup businesses, and all else that make use of funding from a massive number of individuals, are definitely becoming common ventures today. Private funding has suddenly become a less viable option and crowd funding, the way of modern financing. In the process, funds for a specific purpose are raised through a collective effort of individuals and organizational entities. It might be either of personal or professional nature – such as crowdfunding real estate – wherein small donations will be made by all willing contributors. The way of crowd funding is pretty much as straightforward as it can get. There are websites that act as the host of person or organization that needs financing. These are where the donations will be collected from the masses. Generic websites for crowd funding are GoFundMe and Kickstarter. On the other hand, Fundrise, Realty Mogul and Collaperty are three examples of online portals that support crowdfunding real estate specifically. Collaperty is one of the youngest crowdfunding real estate niche portals to date. In their website, any real estate entrepreneur is able to create a profile. They use this in order to display the real estate opportunities they have to offer as well as to solicit from prospective investors. Their model is structured to permit accredited investors to invest in deals through a group effort. Initially, the SEC has limited their deals to being accessible to only accredited investors. However, they were later allowed to go for a wider range of investors. The co-founder of Collaperty, Rishi Palriwala, states that part of the idea that instigated the company’s establishment is to address the various scarcities that plague the real estate invest field, and hence, the world of finance. One of such is the absence of a concentrated situation for networking and uncovering good quality investment deals. Clearly, crowd funding is a definite game changer in the finance and business sectors. With crowdfunding real estate as only one of its major trends, it presents so much potential for the ever-changing economy. For the real estate investment market alone, it offers an innovative approach to financing projects and giving small investors a way in. The general concept of crowd funding is actually seen by many as an economical helping hand. It has proven itself to be a powerful force that becomes the much-needed lifeblood of many businesses. Also, it acts as a great reassurance for some entrepreneurs who are somewhat hesitant to proceed with their planned ventures, especially in the current state of the economy. Essentially, businesses and entrepreneurs can uphold it as a great asset. Before long, the economy is set to find breakthrough finance models through the applications of crowd funding.
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