Since 2013, the amount of capital raised by global real estate crowdfunding platforms has more than tripled, growing from $396.4 to $1.014 billion in 2014. The question remains, however, whether this momentum is sustainable. The real test for real estate crowdfunding, according to industry observers, will be whether these platforms are able to deliver on their targeted returns. But therein lies a challenge: Because the growing space is still in in its infancy, there is a lack of reliable investment data available to would-be investors.
Anthony J. Zeoli, a Partner in Freeborn & Peters LLP's Corporate Practice Group and the author of the Crowdfunding Legal Hub blog, spoke with National Real Estate Investor about this issue for its article titled "Are Investors Collecting What Has Been Promised on Crowdfunding Deals?," which published on Feb. 10. In the article, Mr. Zeoli says that he has yet to see a real estate crowdfunding deal that has been a complete bust or given rise to allegations of fraud by investors.
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