Crowdfunding has grown tremendously in the past few years, and with the recent finalization by the Securities and Exchange Commission of its rulemaking under a 2012 law, there may be an even greater expansion of investor opportunities.
Traditionally, large real estate equity and debt transactions are funded by large institutions such as REITs and life insurance companies that invest in companies or joint ventures with only one or two investors. At the other end of the scale, a local real estate developer or investor might gain funding from friends and family members by way of a limited partnership structure or "sidecars."
