Real Talk On Real Estate Crowdfunding
We just stopped by the CFGE: Crowdfund Banking and Lending Summit at the Grand Hyatt, where we met Flaster/Greenberg attorney Mark Roderick, who reps several real estate crowdfunding platforms. This cheat sheet on his blog went viral, and it even ended up in George W. Bush's hands (a client of his was trying to get investment money from George, so he showed it to him). There are some 8.5 million accredited investors in this country, but the real estate crowdfunding portal sites only have about 10,000 to 20,000 investors on board (Fundrise and Realty Mogul are among the biggest). It's still a tiny cottage industry today; you can't raise more than $2M of equity for a real estate crowdfunding project because not enough people are signed up, he says. But check back in two years, when that number jumps to $10M—and to $50M in five years. More from Mark and others in the industry on Monday.
