In 2015, crowdfunding took off as a real estate investing trend, according to David Tobin, principal at Mission Capital, and reported by Gregg Greenberg of The Street, and 2016 will continue that development.
"People want to take control of their investing domain and in this day and age the alternatives in the fixed income market are non-traded REITs and private placement memos as an alternative to bonds. The fee structures on those just don't work," said Tobin.
Since the practice of crowdfunding is still a new practice in the market,
Tobin said, legal and liquidity concerns will remain. He said questions will endure as to the exact legal structure of
crowdfunded deals and whether or not they should be subject to oversight by the
U.S. Securities and Exchange Commission.
Regarding liquidity, Tobin said marketplaces and platforms related to the secondary trading of crowdfunded investments will arise and develop, although they are not here today.