Once crowdfunding for real estate catches on, we could see a whole new type of bubble – one that is less personal and investors can shrug off – From BI:
In the current environment of low interest rates, investors are scrambling for yield, and many have turned to real estate.
Typically investors buy and flip homes, or they invest in real estate investment trusts (REITs), which own different types of properties.
But Sharestates is offering both accredited investors and the public a real estate crowdfunding platform that lets them dip as little as $100 into a project. The idea is to bring real estate to the masses.
Read more: http://www.businessinsider.com/sharestates-the-e-trade-of-real-estate-2014-8
This is the company they featured:
The two most widely and easily sold products on earth: Fear and greed.
Remember when a middle-aged waitress at Denny’s could open up a day trading account with a couple of thousand dollars in tips, and trade shares in pet.com before she went to work?
How’d that all work out?
Yep, I hear a bell ringing.
Just like penny stocks without all the extensive investor protections and oversight but with all the economies of fractional ownership.