Real Estate Crowdfunding and Its Discontents Whitepaper
Overview
Over the past decade, many so-called "crowdfunding" platforms that claimed to democratize real estate investing have instead underdelivered with poor risk controls, lack of transparency, misalignment with sponsors, and fee-heavy structures.
The opportunity hasn't changed: Private-market real estate still offers a strong thesis as a hedge against volatility and driver of uncorrelated returns, especially given today's public markets and broader economic conditions.
However, private-market real estate remains underrepresented in most individual investor portfolios. According to a 2023 study from NAREIT, while institutional investors like pension funds allocate between 10-20% to private real estate, individual investors typically allocate under 3%, leaving significant diversification and income potential untapped.
Our newest whitepaper explores how individual investors can tap into the potential benefits of private real estate. It takes a hard look at the shortcomings of the crowdfunding model and makes the case for a different approach: direct-to-manager.
Soren Godbersen
Soren Godbersen is Chief Growth Officer at Lightstone DIRECT, where he oversees investor experience, day-to-day operations, marketing, and strategic direction of the group. Previously Godbersen was Chief Growth Officer at EquityMultiple, a category-defining real estate investment platform for accredited investors where he led the Marketing and Investor Relations Teams, helping to grow the firm’s AUM to nearly $1B, and investor network to over 5,000 individual high-net-worth investors. Godbersen holds a Bachelor's of Arts in Economics with Honors from Whitman College.
