When money is borrowed, an interest rate is usually attached to the principal sum. Essentially, an interest rate is the price or cost for the “use” of money between a borrower and a lender. It is often expressed as a percentage of the principal. For example, if you were to borrow $1,000 from a lender,…
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The term “crowdfunding” has become the latest craze for those seeking financing in various sectors. Crowdfunding is an emerging alternative financing option that involves the collection of finances from backers—the crowd—to fund a company, product or project. One of the most talked about was the recent funding of the Veronica Mars film. There are five…
Over the past few years, crowdfunding has affected numerous industries, but none more than the real estate market. Since the passing of the JOBS Act of 2012, which eased restrictions on fundraising by small companies, it is now legal for entrepreneurs to publicly advertise their efforts to raise money. In the case of real estate, individuals…