Raleigh, N.C.-based GroundFloor is staking claim to having subscribed “the first successfully funded, 100 percent crowd-financed real estate deal in the U.S.” — a $40,000 first lien loan for the renovation of an Atlanta home.
While crowdfunding is playing a growing role in financing real estate transactions, such deals typically help developers and investors augment money they’re putting up themselves.
Last year crowdfunding marketplace Realty Mogul, which launched in March, channeled $10 million into 27 properties. Los Angeles-based Patch of Land has helped fund developer rehabs in New Jersey.
GroundFloor co-founder Brian Dally tells the Triangle Business Journal that the company has more than $175,000 pledged by 200-plus investors on two projects. GroundFloor announced in October that it had landed $125,000 in seed funding from four investors, including Bandwidth Labs and Capitol Broadcasting Co. Source: bizjournals.com.
