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Crowdfunding a big hit with real estate investors

Crowdfunding has grown from humble origins to become a multi-billion dollar industry in only a few years, and the online financing marketplace CrowdStreet has carved out a niche matching commercial real estate opportunities with wealthy investors in Maryland and around the country. The Oregon-based company was launched in 2014, and it has developed a reputation for oversubscribing eight figure real estate offers in 30 days or less.

CrowdStreet reports that June and July 2016 have been its best months to date, and one of its solicitations attracted more than new 100 high-net-worth investors. People who are looking for real estate crowdfunding opportunities currently have few choices other than CrowdStreet, but competitors will likely start to emerge if the concept remains popular. The company's co-founder and CEO says that CrowdStreet is successful because it provides investors with a more comprehensive solution.

The commercial real estate offerings CrowdStreet has listed in its marketplace since 2014 are valued at a combined $1.7 billion, and 47 clients use the company's Sponsor Direct back-end management software to handle funds worth $400 million. The CrowdStreet CEO believes that investors want to be more involved with the projects they invest in, and he hopes that the company's June and July results are harbingers of even more success to come.

Opportunities are often fleeting, and crowdfunding adds an element of urgency to commercial real estate investing for those who worry that others will pounce if they fail to act decisively. Performing adequate due diligence is often crucial when large sums are involved, and attorneys familiar with the commercial real estate market may be accustomed to providing investors and developers on a tight schedule with accurate and relevant information in a timely manner.

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