Real Estate Crowdfunding: There's power in numbers

March 16, 2016

Okay, so we have heard people talk about it, it's been the latest buzz word for nearly a decade, but what does crowdfunding mean? According to the latest Miriam-Webster dictionary it means this: the practice of soliciting financial contributions from a large number of people especially from the online community. Now this type of finance has been going for years but usually its a group of wealthy individuals and corporations providing the contributions. It hasn't really been until the last 20 years that this type of alternative finance acting outside the traditional system has really taken hold. Sure, there are examples that have come before like the funding of the Statue of Liberty base back in 1885 (see below) but none so prevalent as today.

Today crowdfunding is used in all kinds of industries especially in arts and music communities. Take the British rock group Marillion who back in 1997 raised $60,000 by the way of a fan-based internet campaign to fund their U.S. tour. And, it was the fans who came up with the idea and managed the whole thing. In the film industry crowdfunding is a popular way for young filmmakers to fund their film projects. Spike Lee, Zach Braff and Screenwriter Rob Thomas have all used crowdfunding to finance their movie projects. Technology has embraced this popular finance method as well. Companies like Pebble, Ouya and Oculus Rift have all raised money through crowdfunding efforts to fund new tech products. And, one only has to look at both President Barack Obama's Election Campaigns, who raised millions of dollars through small donations from everyday people to ultimately become president, twice!

Enter the real estate industry. It wasn't until 2013 with the passing of the JOBS Act that equity crowdfunding was allowed. There are certain provisions and conditions linked to this act but it opened the door to everyday people who want to invest in real estate where before they weren't allowed. This is why Equity Brick was formed to help everyday people finally get into the real estate game. Equity Brick navigates and manages this new form of real estate investing. Kind of like a stock broker manages your stocks*, Equity Brick manages your real estate portfolio. Imagine being part owner in one or multiple properties that provide you with passive income, well now it's a reality. Join the crowd and own a piece of property for yourself. Equity Brick is Texas intrastate real estate crowdfunding platform allowing Texans to invest as little as $500 and earn high returns.

South Real Estate LLC will be issuing securities through Equity Brick’s Crowdfunding platform and planning to raise up to $221,000 to acquire single family rental property in South Austin, TX 78745. Real Estate Market in Austin is fire from past decade and rental rates and property value is going up dramatically. South Real Estate LLC estimated to generate over 6.5% cash on cash return for the investors and property is expected to appreciate over 2% annually. (Please read disclosure prior to investing)

*Investment through equity brick is private and there is no ready market to resell of securities.


How New York Saved Lady Liberty

It's common knowledge that the Statue of Liberty was a gift to the United States by the government of France and it was designed by the French sculptor Frederic Auguste Bartholdi. But, did you know that it almost was never erected because the US was unable to raise $250,000 for a granite plinth for the statue? The committee that was supposed to raise the funds fell short by more than a third and the New York governor didn't want to pay for it and neither did Congress. New York was about to lose one its prize possessions until New York publisher Joseph Pulitzer came up with an idea. What if he ran a fundraising campaign through his newspaper and let the people of New York decide the fate of the Lady Liberty. And New Yorkers did just that; in just five months Pulitzer's newspaper raised enough to cover the last third of the funds to complete the pedestal and a little leftover for the sculptor. This unprecedented crowdfunding campaign raised over $100 thousand dollars (about 1.2 million today) from more than 160,000 donors. And, this money came from businessmen, street cleaners, politicians even young children, with more than three-quarters of the donations amounting to less than a dollar.

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