Peer to Peer Investment Properties?

Yesterday we saw another expansion in the world of peer to peer lending and crowdfunding.

Canaan Partners, who is an investor in Lending Club and an advocate and investor in crowdfunding technologies and marketplaces, has led an investment round of $9 million into Realty Mogul.  See the actual press release here.

Realty Mogul allows accredited investors to buy pieces of already vetted investment properties, both commercial and residential. It's like a REIT (Real Estate Investment Trust) but with fewer reporting requirements especially if Realty chooses to stay with accredited investors and staying at under 100 investors total. Why these lead to fewer reporting requirements is covered in one of our Legal Corner posts.

As banks continue to not fulfill the funding needs of the marketplace, crowdfunding techniques step up to the plate and this is just another example.  For us little guy retail investors, this is especially good because some of the institutional money may be drawn to places like Realty Mogul and away from Lending Club giving us more loans available to invest our money.

 

About the author

Stu Stu Lustman, the author of this post, is a Credit Analyst by trade trying to bring Commercial Credit Analysis techniques to the world of Peer to Peer Lending. Check me out on Twitter, LinkedIn and Google+

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