posted Jun 27, 2013, 8:54 AM by
Many companies specializing in real estate investments are beginning to offer crowdfunding opportunities in the market. Professionals at BentleyForbes, a privately held real estate investment and development firm, comment on this trend.

LOS ANGELES, CA, June 25, 2013 /24-7PressRelease/ -- As a real estate investment and development firm,BentleyForbes understands that the way people take advantage of new opportunities within the market have changed and adjusted to economic fluctuations throughout the market. Now, a popular funding option--known as crowdfunding--has entered the real estate investment scene and many firms are picking up services to offer investors a chance at crowdfunding options. In fact, a recent article from Forbes highlights the "crowdfunding invasion" in the real estate industry.

The article explains, "Crowdfunding is rapidly changing the real-estate investment market, offering developers new ways to finance projects, small investors a way in, and the socially conscious an avenue to support their local communities--and their local farms." While this may seem like a great opportunity, BentleyForbes encourages consumers to stay fully aware of what crowdfunding actually is.

In a recent press statement BentleyForbes explains, "Many people see crowdfunding as a way to get in on an investment opportunity for a small contribution. However, this option seems to deliver more to the party that needs the financing, rather than the investors. For instance, has become a solid crowdfunding resource for creative artists who ask fans to contribute funds in order to finance a project that the party cannot afford. In the real estate investment world, crowdfunding follows different rules that are not as simple, so investors really need to take the time to see if this is the right option for them."

As the Forbes article reveals, some crowdfunding opportunities may not prove as viable or available as the trend may suggests. For instance, the article explains the current state of original real estate crowd resource Collaperty and notes, "The first real-estate crowdfunding network is still little more than social. It lists real-estate opportunities and connects investors. It currently has 79 members collaborating on 14 real-estate deals, and is raising $22,487,456 in equity."

While crowdfunding may prove a considerable option for those in the right position, BentleyForbes notes that there are a few pitfalls to look out for when considering this investment opportunity. "There are many risks associated with crowdfunding that may reveal that this investment approach is not quite ready for today's real estate market. For one, investor trust over crowdfunded ventures is low; meaning that it can prove difficult for a company built on crowdfunding to obtain additional growth resources in the future. It is also a very isolating practice, as having so many people involved can actually prevent things from getting done or specialized knowledge from being applied," BentleyForbes concludes in its press statement.

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