Month: August 2014
We’ve all seen examples of crowdfunding in it’s various forms. Usually posts are circulated around Facebook and share the users story in order to gain some donation from friends willing to help. The tactic to raise money can be used to gain support for college tuition, gadget development, surgery costs, or even to buy a new bicycle! Crowdfunding can essentially be used for anything and when backed by the massive power of social media available at everyone’s fingertips, the trend is quickly catching on and taking new shapes. It’s newest face? Real estate.
So how exactly does crowdfunding work? Essentially it’s asking for funding for an idea, project, or virtually anything imaginable and giving back a small thank you contribution to those who support your crowdfunding proposal. Therein lies the challenge when it comes to real estate crowdfunding…giving back. But with this bigger challenge lies a possibility for a greater reward. When a contributor invests in a real estate project, they are given a piece of ownership to the business venture. In the event that the crowdfunded real estate project is successful, the benefactors could garner a major return.
Just in the last year alone, a handful of real estate crowdfunding websites have sprung up and raised massive amounts of supporters backing the projects. Even real estate pros are taking notice of the crowdfunding techniques and giving it a try on their own like Jay Massirman, who has been in the real estate business for over 30 years. Massirman decided to try his hand at crowdfunding for an Orlando project although it would be his first time using the technique to gain support. In the end, who’s to say that crowdfunding for real estate won’t be a massive success? Although it is too early to tell right now, the idea of owning a piece of a successful piece of realty is enough to drive influential investors to the idea.
Real estate trends usually revolve around a number of different factors, which can prove to be major influence. Tourism has proven time and time again to be one of those contributors. Miami is no stranger to record-high tourism, which easily explains the constant renovation and reconstruction of Dade County. In 2013 alone, Miami tourism continued its streak of record-breaking numbers with a whopping 14.2 million visitors overnight, most of which were classified as luxury visitors.
The tourism-real estate trend isn’t just limited to the South Florida area, however. When looking on a national scale, other areas are reaping the benefits, as well. Nashville, for example, has seen a massive increase in the commercial real estate industry all thanks to the booming tourism numbers. Nashville, Tennessee was named one of the top travel destinations of 2014. As a result, new developments are constantly springing up in the area that range from retail to restaurant to a new music center which contributed millions to the economy during its first year.
Miami not only boasts massive tourism numbers, but immigration numbers to boot. Just last month, the World Cup influenced a major influx of Hispanic visitors to show off their pride in one of the nations top Hispanic travel destinations. As a result, the Hispanic population has ultimately witnessed an increase after events like the World Cup all due to the tourism experience. This eventually segues into a much larger growth in real estate; it also affects the overall cultural experience of South Florida. Commercial and residential real estate growth becomes evident when you take a look around and take notice of all the reconstruction, sky-high construction cranes, and growth in business. All the signs point to the fact that the effects of tourism are positively influencing real estate.