Could Crowdinvesting be the next big thing

Question

Hi BiggerPocket community,

We are working on a new startup with the core idea of crowdfund investing. Allowing anyone to invest $1,000 and up into vested real estate cash-flow deals. The thought is to make a monthly passive income through Real Estate accessible to everyone.

Let me know your thoughts on this idea. It will help us gage whether we should move forward with the mess of legalities to make this happen.

Account Closed · Answer

Did you happen to miss the shark tank episode on this very issue?

Chris Field · Answer

Raising any kind of money a few thousand at a time seems like a nightmare.

If you only have a thousand bucks to invest buy a share of a REIT.

Jim Groves · Answer

I've been studying this for over a year, and it seems to me that starting one isn't terribly difficult (there are over 100 at one count).  What is terribly difficult is figuring out 1) How this investing is better suited for individuals than a REIT (I discuss this on my blog), and 2) How your platform is going to be better or different than the 100 or so that already exist.

"We've been in this business a long time" unfortunately isn't enough of an answer.  From what I see, most of the large platforms are run by relative newbies to this business and they're doing quite well.  Access to a good pipeline of deals while making investors trust your underwriting process is the key to sustainable success.

Luke Miller · Answer

I'm with @Joshua. How is this different from a REIT? I really like the concept of making it accessible to everyone though.

Robert Steele · Answer

I believe this is already being done. A fellow investor college of mine sent me some info earlier this year on a website that was doing this.

Of course I was not interested in putting all the control in someone elses hands.

Joshua D. · Answer

If you could make it work?   I think the bigger question would be why don't I just buy a REIT.