Many young adults want a home but cannot afford one of the few properties on the market. Fundrise, a creative eFund system, will let them put money toward new construction.
Fast Company reports that Fundrise is being launched in Los Angeles, a market starved for available homes (estimates say that three times as much new construction is needed to satisfy demand). Public investors can buy $1,000 worth of shares, which will be used to build new homes in walkable urban neighborhoods.
Fundrise takes advantage of small vacant lots, a strategy different from big builders who buy large swaths of land and build dozens or hundreds of homes at once.
The money raised through the new eFunds will be invested in land and construction. While the company can’t make specific projections, based on the $50 million offering, it believes that it could build between 250 and 750 new homes over the next five years, working with the crowd of investors to push for zoning changes where needed.
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