Commercial Investment Real Estate September/October 2017 | Page 18

INVESTMENT
A N A LYSIS
Game Changer
Crowdfunding disrupts traditional investment models.
he biggest companies in the world appear untouchable.
However, ample evidence shows an extensive list of
household names such as Kodak, Blockbuster Video,
and Pan Am disappeared overnight after failing to
adapt to a new era.
It’s also easy to forget how behemoth billion-dollar companies
such as Facebook, Netflix, Uber, and Airbnb are mere babies in
business longevity. Likewise, real estate crowdfunding platforms
were not available five years ago. Today, Bloomberg estimates
more than 125 sites exist in the U.S. alone.
T
Rampant Disruption
Welcome to the age of disruption. The world of simplified and
personalized experiences is delivered within a few swipes. Unsur-
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September | October 2017
prisingly, little room for archaic processes and meaningless red
tape exists from the old way of doing things and the analogue past.
The use of advancements in technology is allowing young and
agile start-ups to remove any pain points. By offering greater
transparency, speed, and efficiency, as well as real-time data,
the commercial real estate industry is embracing the digital
transformation.
Crowdfunding is proving to be the new best friend of real
estate. Tech-savvy investors have discovered that this relatively
new model allows them to pool their resources. By reducing risk,
ultimately, they are opening an affordable opportunity to invest
in commercial real estate and boost returns.
This year’s Crowd Invest Summit, Sept. 6–7 in Los Angeles,
targeted the real estate marketplace lending sector. Once again,
COMMERCIAL INVESTMENT REAL ESTATE
by Allen Shayanfekr