Crowdfunding for Real Estate: Buy a Slice of a Skyscraper

Crowdfunding for Real Estate: Buy a Slice of a Skyscraper

Interesting Article that I have discussed on this blog before. And that is the process of using crowd funding to source financing to purchase individual real estate assets, in particular, skyscrapers. My blog post from last year went into some detail regarding this process.



Here is an updated take on the same process from businessweek.com

From the pyramids to the Empire State Building, the world’s largest structures have typically been financed by the superrich. New York-based Prodigy Network, best known for marketing the Trump SoHo hotel condominium, is now trying a different model: It’s bringing crowdfunding to real estate, soliciting thousands of investors to buy slices of a skyscraper in exchange for a share of rents and property appreciation. “The big difference from traditional real estate is that instead of buying into a fund with a pool of assets, people invest in a single asset,” says Rodrigo Niño, Prodigy’s founder and chief executive officer. “It lets them control the risk.”