A decade ago, crowdfunding platforms sprung up out of what seemed to be thin air following the approval of the JOBS Act, which loosened restrictions barring un-accredited investors from participating in investment funds. The goal of the JOBS Act was to help small businesses raise $1 million, but Bruce Stachenfeld, chairman of RE law firm Duval & Stachenfeld, says that the leading crowdfunding platforms have by far exceeded that goal.

"Crowdfunding has grown up to be a real player in the real estate market," Stachenfeld tells GlobeSt.com. "Over time, these platforms have aggregated investments from high-net worth individuals, people that could invest $10,000, $25,000 or $100,000 that want to invest in real estate but don't have access to private equity funds that have a $1 million or $5 million minimum."

Instead, crowdfunding platforms have hosted fundraises well over $30 million, with most organizations targeting $5 million to $20 million. "Most of them are saying that $1 million is too small, and unless there is a special circumstance, they are not even interested in it," says Stachenfeld, adding that each of the two leading platforms, Real Crowd and CrowdStreet, have more than 50,000 investors participating on the site.