Brought to you by
KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate
construction crane 980 AP
A new site allows individuals to invest as little as $100 in hotels, apartment buildings, and other development projects. (AP Photo/Mark Lennihan)

Invest $100 in a hotel? Crowdfunding comes to real estate

Crowdfunding for real estate deals is gaining steam in the commercial sector.

A crowdfunding website known as FundRise has raised more than $31 million in its first round of raising funds from investors to finance commercial real estate projects, The New York Times reported.

The Washington, D.C.-based real estate crowdfunding firm has also been breeding a new form of investors in commercial transactions - once known as the exclusive domain of wealthy investors and private equity firms.

The site allows individuals to invest as little as $100 in hotels, apartment buildings, and other development projects. Fundrise's mission has been to let any resident of a community invest in a real estate project being developed there.

The latest financing round in raising $31 million was led by Renren, a large social networking company based in China. Several real estate firms and individuals also backed the financing round.

Interest in crowdfunding has been growing in recent months. For example, Realty Mogul announced a $9 million funding round from the venture capital firm Canaan Partners. Last month, the Carlton Group, a real estate investment banking firm, also had begun a crowdfunding portal that would offer $1 billion worth of deals globally.

"When we started, no one had ever heard of real estate crowdfunding," said Ben Miller, one of the Fundrise founders.

But now three years later, more investors are embracing the concept. In just the last few months, the site owners say that nearly 300 developers have signed on to the site.

Tom Kelly, Real Estate Today
Tom Kelly has been a professional journalist for 36 years. He served The Seattle Times for 20 years, many as Real Estate Editor.
Top Stories

  • Welcome to Thunderdome
    Five position battles will likely be settled at Seahawks training camp

  • Terrifying Escape
    An intoxicated camper caught his quick escape from a Washington wildfire on video

  • Being Replaced?
    What airplane-building robots actually mean for Boeing Machinists
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Mortgage Calculator
Enter Your Details & Click the Calculate Button
Loan Amount $
Annual Interest Rate %
Term of Loan Years
Number of Payments
Monthly Payment $
Brought to you by

This is not a commitment to lend. Terms subject to change without notice. Applicant must qualify to receive credits. A division of Pinnacle Capital Mortgage Corp. WA CL 81395, Equal Housing Lender, MLO 70765.
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.