Last week, NexusCrowd launched a $12-million real estate development project featuring three properties, according to the Mississauga News. That project follows hard upon Canada’s first crowdfunded real estate project, a $100 million retail mall that was also funded through NexusCrowd.
The current project features a former pharmaceutical manufacturing facility and two industrial properties, according to the Mississauga News.
“This type of deal is extremely exclusive, NexusCrowd CEO Hitesh Rathod told the News. “Most individuals would never get to see this type of opportunity.”
The latest offering is shooting for funding of $500,000 – a goal that’s easily reachable if proper care is taken, according to Rathod.
“I think crowdfunding has huge potential,” he told the news. “It just needs to be done the right way. You need to do due diligence. It can be a risky proposition, and I work to mitigate risk.”
While crowdfunding for real estate is still a relatively new concept in Canada, it’s becoming big business globally. The global real estate crowdfunding market is expected to hit $2.57 billion this year, and real estate crowdfunding raised more than U.S. $208 million in the United States over the last two years, the News reported.
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Are crowdfunded real estate projects the wave of the future? They’re still rare in Canada, but the head of a crowdfunding company says they’re gaining traction.