NCFA Canada (About Us) | Gabe Nasr | July 24, 2014

How equity crowdfunding for real estate makes investing in real estate a reality for the common investor, and boosts local community development

Real estate investment crowdfunding is growing exponentially in international jurisdictions including the US.  Learn about the potential of equity crowdfunding for residential, commercial and community re-development projects in Canada and how it works.

Recorded July 2014:  Listen to an equity crowdfunding for real estate expert panel discussion hosted by NCFA Canada featuring Tim McKillican, President of Open Avenue, Doug McLean, CTO of Joi Media / Katipult, and Commercial Real Estate lawyer and NCFA Advisor, Albert Lin (24 mins in total length).

Google Hangout Panel Participants Include:

Tim McKillican, Founder and President, Open Avenue

Albert Lin, Commercial Real Estate Lawyer, NCFA Advisor

Doug McLean, CTO at Joi Media / Katipult

Still Not Active in Canada

Equity crowdfunding for real estate is thriving in the US, raising more than $135-million in debt and equity. It seems that it is only a matter of time for Canada to put regulations in place which allow this model of crowdfunding to be active, however, currently the Ontario Securities Commission is proposing to exclude the entire real estate industry from participating due to several concerns (see OSC proposed crowdfunding exemption rules and regs).

For now, given the proposed investor cap of $2,500 per deal in Ontario's proposed equity crowdfunding model, which is considered quite low given the high capital needed in real estate investing, a property costing $500K would need approx 200 crowd investors to fully fund the offering.

The Benefits of Investing in the Local Community

As Tim McKillican points out in our discussion (at minute 14:30), having this extra autonomy over one’s portfolio allows one to invest their money in places closer to home, thus keeping their investment capital local, and developing their surrounding community.

Differing from REITs, equity crowdfunding for real estate creates offers more control over the which properties one chooses to invest in.

An Extra Level of Security

Investors have direct title to the asset (in this case over the property), which, as we discussed in the talk, makes the investments made through these specialty crowdfunding portals more secure.

Do you agree?

Check out the chat we had with our expert panel, and please join the ongoing discussion. Do you think equity crowdfunding for real estate is a smart way to invest and grow communities? Or is it a flawed model which can be misused or exploited...

Watch Equity Crowdfunding for Real Estate Panel Discussion --> Now

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada crowdfunding hub providing education, advocacy and networking opportunities in the rapidly evolving crowdfunding industry. NCFA Canada is a community-based, membership-driven entity that was formed at the grass roots level to fill a national need in the market place. Join our growing network of industry stakeholders, fundraisers and investors. Increase your organization’s profile and gain access to a dynamic group of industry front runners. Learn more About Us or contact us at casano@ncfacanada.org.