The Commercial Real Estate Show featured Manatt’s Brian Korn, chair of the firm’s digital finance and marketplace lending practice, in a segment about commercial real estate crowdfunding.
When asked about the advantages and disadvantages of the model that have been impacting the growth of crowdfunding and digital finance, Korn responded:
“Originally, the goal of crowdfunding was that we would all work together towards a common goal, and $5 from a lot of people adds up to a lot of money. It has really been transformed now into an alternative investment space… there’s less volatility and less uncertainty about the project. If you’re investing in the equity of a project, in a hotel, office building or strip mall, you have visibility in that you know that it exists—you can drive by it… but at the same time, there’s more risk there as to when your exit is going to be and for how much. Generally, as a crowdfund investor you’re going to have little say in that aspect of it.”
Watch the full interview here.