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Real Estate Crowdfunding: 2015 and Beyond

Real Estate Crowdfunding: 2015 and Beyond

Steven A. Cinelli
ISBN13: 9781799817604|ISBN10: 1799817601|EISBN13: 9781799817611
DOI: 10.4018/978-1-7998-1760-4.ch048
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MLA

Cinelli, Steven A. "Real Estate Crowdfunding: 2015 and Beyond." Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, IGI Global, 2020, pp. 927-954. https://doi.org/10.4018/978-1-7998-1760-4.ch048

APA

Cinelli, S. A. (2020). Real Estate Crowdfunding: 2015 and Beyond. In I. Management Association (Ed.), Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications (pp. 927-954). IGI Global. https://doi.org/10.4018/978-1-7998-1760-4.ch048

Chicago

Cinelli, Steven A. "Real Estate Crowdfunding: 2015 and Beyond." In Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications, edited by Information Resources Management Association, 927-954. Hershey, PA: IGI Global, 2020. https://doi.org/10.4018/978-1-7998-1760-4.ch048

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Abstract

Like a juggernaut, “crowdfunding” has hit the media, the financial markets and the common narrative by storm. Incipient in many ways, the intermediation of financing transactions online has become a billion-dollar industry. As technology has advanced, even recreated, industries, there seems none more primed than “finance”, an inherently information business. By creating improved efficiency, both art and science of finance are enriched. A 21st century vestige of the 1980's syndication business, real estate seems to be enjoying the fruits of the crowd, with $1 billion of property financings conducted online in 2014, with an expected $2.5 billion this year. For sponsors and investors, there appears legitimacy to the online approach, underscored by the level of venture capital now finding home in this burgeoning sector. Yet, like its progenitor, might real estate crowdfinance find legislative, regulatory, and practical headwinds, stunting its progress? Still early, with business models, scalability and sustainability still suspect, the current momentum seems promising.

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