Published under: Crowd Funding, Innovation, Thought Leadership, Real Estate Investing

Crowdfunding is popular because it allows individuals to be a part of something that they would otherwise never had enough money,crowdfunding time or knowledge to approach. A grandmother from Duluth can invest in the dreams of rock star in New York; a business executive in Seattle can fund a small movement for clean drinking water in an unknown village in Africa.

But, crowdfunding is more than just altruism with a dash of hope. Many investors are doing it for the old-fashioned reason of making money. To that end, commercial real estate is getting in the game. Companies like Realtyshares, EarlyShares, iFunding Fundrise and Realty Mogul are bringing crowdfunding to the commercial real estate game. These businesses bring together buyers and investors. Typically, the investors put-up a minimal investment in an attempt to gain enough pledges to secure the acquisition. The company handles the transaction and makes money off of administrative and investment tracking fees.

According to Crowdnetic, commercial real estate is the fastest growing segment in crowdfunding. This is largely based on the fact that investors have an opportunity to use a new investment model in a familiar industry. Commercial real estate has the benefit of being a concrete, understandable investment which starkly contrasts the technology startups that are rampant on crowdfunding sites.

As real estate crowdfunding companies partner with well-known sites to gain millions of listings, the potential for this segment of the industry to reach epic proportions is great.