Will Pre-funded Deals Strategy cause a shift in Real Estate Crowdfunding?
Real estate crowdfunding platforms are increasingly shifting towards pre-funded deals to increase their market share and deal flow. Pre-funded deals occur when a crowdfunding platform gives a real estate developer who needs capital right way a loan guarantee without having to first take the risk of raising the entire loan amount from online investors. According to the 2015 TRN Real Estate Crowdfunding Report, crowdfunding platforms are opting for this strategy to meet the needs of developers who need to raise capital quickly in order to close lucrative deals in a short amount of time. In such situations, pre-funded deals come in handy because raising funds online can take longer – usually a few weeks or even months. While pre-funded deals enable real estate developers fast funding, it also benefits investors who get returns faster because deals with developers are closed prior to the commencement of the fundraising process online.
Financing Requirements
The challenge with the innovative idea of funding
