Investing In Land – Buying Land Through Crowdfunding

    Investing In Land – Buying Land Through Crowdfunding

    In the Internet age the concept of raising money in small amounts from a wide network of investors has crystallized in crowdfunding websites such as IndieGoGo, Kickstarter, and GoFundMe. Millions of dollars are being raised every day in support of knick knacks or inventions or YouTube projects. If you can dream it, you can raise money for it through crowdfunding.

    In 2012 Congress legislated the JOBS Act into existence which made it possible to raise corporate equity. It was not like you could pony up $100 and grab a piece of the next hot start-up, however. Only accredited investors with a net worth of one million dollars or a verified income of $200,000 per year could participate. Now the equity markets have embraced crowdfunding for real estate. In the past year more than $100 million has been raised to purchase properties across the United States. Crowdfunding outfits that cater to everyday land shoppers are beginning to sprout up like weeds in a vacant lot.

    And why not? Crowdfunding may have gotten its start with a real estate deal. When France gave the United States the Statue of Liberty as a present the gesture was certainly appreciated but there was no place to put Lady Liberty. It took a newspaper publisher, Joseph Pulitzer of prize fame, came up with a solution. He initiated a fundraising campaign and promised to print the name of every donor in his New York World newspapers – regardless of the size of the donation. Pulitzer was able to raise the necessary $100,000 to construct a pedestal on Bledsoe’s Island in New York harbor. He had to print 120,000 names, 100,000 of whom had pledged less than a single dollar.

    The crowdfunding platforms perform the due diligence for the buyer including checking references and tearing down the financials. Most deals require a holding time of at least three years and the most popular properties to finance are worth between one million and four million dollars but requirements are changing on this fast-changing    playing field. If you want to begin investing in land but lack the financial resources or experience to go it alone and still want to invest in real property crowdfunding can serve as a bridge to the future.

    Discussion — 3 Responses

    • Joey Langley November 19, 2017 on 5:37 pm

      Hello my name is Joey Langley and I’m looking to raise capital here in louisana to buy a track of hunting land. You see it cost folks who likes to hunt in Louisana about $1,700 dollars a year to hunt . That is one hunting season to the next. What I propose to do is buy land for about 100,000 if I can raise the funds. Then I would like to sell off at least of the track of land go $4,000 in acre tracts. This would eliminate hunting dues every year. Once they buy the acre tracts they are done and the acre tract is theirs for now on. This would end all the high dollar hunting dues from year to year. So if you would sell 50 I acre tracts to hunt on for $4,000 per 1 acre gyrations you would generate $200.000 back I would gladly give A 30% return on their initial investment which would be about 30,000 dollars profit. I would try to have the folks interested in buying the tracts lunged up before I ever spent any money on buying land. So it would a fast turn around. I would then keep the other 50 acres for my self. It would go over good.

    • Joey Langley November 19, 2017 on 5:44 pm

      I would sell at least 50 acres at $ 4,000 an acre that would generate 200.000 in funds and $100.000 to split in which I would take $40,000 and leaving 60,000 for a profit for investor. Plus I would keep the other 50 acres for myself to hunt on.


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