Fundrise's Next Big Thing
Crowdsourcing worked for theVeronica Mars movie and getting a Robocop statue built, but how about for real estate?Fundrise is proving it can.The DC-based company is working with MRP Realty and Ellis Development Group to allow the public to fund some of The Griffith, a redevelopment project at 965 Florida Ave, in Shaw. Seeking $300k for the mixed-use retail/ residential development, Fundrise co-founder Ben Miller (back row, gray v-neck) says crowdfunding allows ordinary citizens to become real estate investors by throwing in $100 at a time through the Fundrise website. In return, they could see some cash flow from the property's appreciation and rent.
MRP principal Matt Robinson says the community also gets an ownership share of a new development in the neighborhood. Fundrise launched three years ago after Ben saw a disconnect between institutional capital partners and the community surrounding projects they fund. The platform is free to investors; fundraisers pay a subscription fee. Ben thinks crowdfunding in real estate will catch on when developers realize they can turn to the public to fund portions of projects. One recent DC development at 906 H St raised $200k from 200 people in 48 hours. It's also been used for projects in Santa Monica and Brooklyn. Matt says MRP is considering trying it out on other DC projects.
