4 Real Estate Crowdfunding Risks For Investors

By Andrew McIntyre (August 20, 2015, 12:18 PM EDT) -- Real estate crowdfunding is becoming more accessible to the masses and more desirable as investors eye the liquidity such investments afford, but it can carry significant risk, lawyers say.

Those considering real estate crowdfunding investments should consider the reputation of the online portal, the specific structure of the deal being offered and the reputation of the developer.

Lawyers should warn their clients to watch out for these four specific risks:

Insufficient Due Diligence

With more and more real estate crowdfunding portals popping up, investors have myriad choices for investment platforms, as well as for types of investments. Lawyers say investors need to...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!