How does a real estate crowdfunding website make a profit?


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    How does a real estate crowdfunding website make a profit?


  • admin

    Real estate crowdfunding platforms earn money through different fees. As the business models are different, those fees might be charged from investors, Sponsors or even both.

    Typical fees might include fundraising fees, management fees, performance-related fees (carry) and transaction-based fees.

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    It is pretty simple. They charge investors a certain rate to borrow money from them. They give other investors a lower rate than they borrow money from. It is very similar to hard money, but they allow more people to be investors.