Crowdfunding Is Perfect for Real Estate Investment

Jonathan Genton

Crowdfunding is a natural fit for commercial real estate investment, according to developer Jonathan Genton, founding partner and CEO of Genton Property Group. The capital platform is, of course, not totally new. It arrived on the industry five years ago as an alternative equity and debt source, and since, several companies have emerged to provide crowdfunding services. Crowdfunding has been sold to real estate players as a way to reach both large and small investors they otherwise wouldn’t be able to access. However, crowdfunding can tell the real estate story to capital investors and capture a new investment pool for the industry.

“Crowdfunding matches investors that want to access real estate with owners or real estate holding companies through a transparent process,” Genton tells GlobeSt.com. “Through crowdfunding, investors can see the property, the developer and the holding company, and they can make their evaluation. When you are dealing with real estate, you are dealing with larger projects that are asset based as opposed to product based. There is some comfort in buying apartments in Los Angeles because the investor can see an asset there.”