Property Crowd Funding Position Essay Example | Topics and Well Written Essays - 500 words

Property caboodle Funding Position - Essay ExampleThere are three types of crowdfunding, which include donation, debt, and equity. Donation crowdfunding is generally related to noble causes, where most people decide to invest simply for they believe in the character of Crowdfunding. Similarly, debt crowdfunding is based on the concept of peer-to-peer lending process1.In debt crowdfunding, the entire process revolves around lending money, wherein the investors hold to receive their interest on their invested amount and thus, gain profits. In this case of debt crowdfunding, along with the financial returns, investors in addition aim at gaining the benefit of contributing to the success of a particular purpose, which they believe as worthwhile. Additionally, in the case of equity crowdfunding, people invest in exchange for equity. Fundamentally, here the money is exchanged with the shares. Correspondingly, it faeces be stated that when the funding is successful, the communitys sha re value goes up, and vice-versa2. It is worth mentioning in this cipher that both debt crowdfunding and equity crowdfunding can be related to property crowdfunding concepts, wherein investors tend to buy a very estate in order to sell it or let it out in order to develop profits or returns.Aimed at elaborating on the context of property crowdfunding, the discussion henceforth will luxurious on two main themes, which are property or real estate and crowdfunding. In the control of todays competitive global business world, crowdfunding in real estate has emerged as a new investment option with secured high returns for many. It was following this augmentation in the rate of property crowdfunding that the Jumpstart Our concern Startups (JOBS) Act of 2012 was brought into effect in the US. This new rule was intended to allow all the investors from every income aim to gain direct access to the real estate market with the help of crowdfunding.