Those seeking prime Manhattan real estate opportunities surely know that securing affordable commercial properties within city limits can be an exceedingly expensive undertaking. In fact, this area is one of the most expensive real estate markets in the world, which makes procuring property there little more than a pipe dream for many investors.
Fortunately, this dream is quickly becoming a reality thanks to steps taken by the New York City Real Estate Investment Cooperative (REIC), and Prodigy Network. This group is using crowdfunding tactics to render existing vacant properties owned by municipalities into spaces to be used for a number of community functions. This serves to offer residents the benefit of enjoying a shared area with their neighbors, while also doing away with urban blight created by abandoned buildings.
What Is Crowdfunding?
While crowdfunding has become more and more popular over the last few years, many people may still be fully unaware of what the process entails. Crowdfunding involves soliciting small amounts of money to undertake a specific project or business venture. This is typically done via the internet, which makes reaching a vast number of prospective participants far easier than other methods.
In the past, funding renovation projects like those proposed by the REIC would have involved larger investments by established firms such banks or other financial entities. This method runs into quite a few issues given that many larger investors are reluctant to finance projects they deem experimental or risky. Conventional investors also tend to influence decisions related to a project to ensure monetary gain is a priority, which usually counters community goals and needs.
What Are the Overall Goals of the REIC?
In contrast, the REIC is taking this investment opportunity to the community itself, thereby allowing residents a say in the types of structures that exist in their own neighborhoods. This is particularly important when instituting commercial spaces, which can raise the ire of community members if they do not fall in line with their ideals. Expense is also an issue, especially in New York City, which is known for an exorbitant cost of living.
To this end, the REIC states their overall goals to be that of socially just urban planning that best serves those actually living in the area, as opposed to large corporations situated far from the community itself. The REIC also wants New York City to serve as model for these types of crowdfunding methods to communities all over the U.S. This is particularly relevant to communities facing high levels of poverty and little opportunity, which may find it difficult to bounce back from such peril.
A New Hope for New York City Residents
While New York City is best known for its abundance of local culture and its melting pot ideals come to life, many in the city are dissatisfied with the current state of affairs related to real estate expense. That’s why investment projects like the one posed by the REIC are so important to the quality of life of those residing in the city. Not only do these innovative projects help create job opportunities for those who live in the area, they also serves to bring residents together in the pursuit of a common goal.