Sometimes the foundation of successful entrepreneurial idea is to take a well-known, effective business practice and tweak one step in the process with an interesting innovation. In the arena of real estate development,RealtyShares is doing just that.
Based in San Francisco, RealtyShares provides crowdfunding for real estate development, fostering residential and commercial real estate innovation in how investment capital is raised. The process aims to benefit both investors and real estate developers. Other crowd funding examples exist such as Lendingclub.com for consumer loans.
The crowd funding platform for RealtyShares provides ease of access that typically isn’t available to private investors who want to invest smaller pools of capital. RealtyShares allows a minimum investment of $5,000 and investors can choose between a range of properties in both commercial and residential markets, creating an opportunity for investment diversification. The model creates a new way for the individual investor to participate in the real estate market.
For developers, the crowdfunding model takes the development process out of the traditional realm of banks and institutional investors, creating a broader network for raising capital. Ideally, with RealtyShares managing the financial nuts and bolts of the investment process, the opportunity exists for developers to raise capital more quickly and focus on the core work of property development.
Clearly, this model shows signs of success, as a recent article states that the company has raised more than 1.9 million dollars in venture capital to grow its platform. Having just opened the doors in 2013, RealtyShares has already funded projects estimated at more than 70 million dollars in value and, with this latest rounding of funding, will continue to bring investors and developers together for more projects.
If you are looking for innovative and effective methods to bring high growth to your entrepreneurial venture, please contact us today.