Private Lender by AAPL

Page 18


Wide Open for Business Crowdfunders’ alternative lending solutions add value to the marketplace. by Robert Greenberg


orrowers investing in singlefamily residential real estate now have access to more alternative funding sources than perhaps any time in U.S. history. Part of that opportunity comes through crowdfunding, which appeared around 2003 when Brian Camelio, a Boston-based musician, started ArtistShare, a website where artists


could seek donations from their fans to produce recordings, according to authors David M. Freedman and Matthew R. Nutting in “A Brief History of Crowdfunding.” The authors called it the first instance in which crowdfunding — seeking multiple small donations via an online platform — gained significant traction in the United States. Since then, many types of

crowdfunding companies have emerged, including platforms for investing in commercial real estate, single-family residential property mortgages and all types of business startups. Since those early days, real estate crowdfunders — or peer-to-peer alternative lenders — have positioned technology and transparent platforms to investors as part of their strategy