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The doors to real estate investment are opening wider.

Deregulation by the U.S. Securities and Exchange Commission last fall has allowed Portland startup CrowdStreet to become Oregon’s first real estate crowdfunding company.

“What this does is open up new access to funding sources that traditionally have been closed, or were very exclusive and private,” said Tore Steen, a CrowdStreet co-founder and its CEO.

The new rules are bolstering similar U.S. startups, which together could significantly alter the way development comes together. On Monday, CrowdStreet launched and presented for a $13.3 million transitional- and assisted-living development in Bloomington, Ind.

“(Traditionally), if a developer wanted to raise individual equity it was through their own private network, and it was usually in one-on-one conversations,” Steen said. “By using a crowdfunding platform like CrowdStreet they can get access not only to investors in their own location, but also investors across the country who might have an affinity for that location or that property type.”

CrowdStreet’s first offering is spearheaded by Indiana-based developer Mainstreet, which specializes in concierge-based health care facilities. The company has reportedly developed more than $200 million worth of such facilities, and has close ties to a large, publicly traded real estate investment trust named HealthLease Properties. Access to capital isn’t a huge concern for Mainstreet, but Chief Operating Officer Scott White said it saw an opportunity to blaze a trail.

“The crowdfunding platform, we think, has the potential for significant growth, and the opportunity for investors to access opportunities they wouldn’t otherwise access,” White said. “We feel we’re democratizing the process.”

CrowdStreet is hoping to raise $1.5 million from accredited investors. That money would combine with $1.8 million from Mainstreet and a $10 million bank loan to pay for construction. Mainstreet plans to pay investors a 10 percent quarterly return over an 18- to 24-month period, with a potential 4 percent distribution upon completion.

Other startups have already put real estate crowdfunding to use. Washington, D.C.-based Fundrise recently reported it was raising approximately $1 million per week – $25,000 an hour – through crowdfunding. That bodes well for CrowdStreet.

“At this point it’s still a very open market in terms of opportunity,” Steen said. “Any project that gets listed with a crowdfunding platform is a good thing.”

Shortly after the Bloomington opportunity was launched Monday morning, White said Mainstreet had already secured commitments totaling $50,000. For Steen – who formerly worked at tech companies like Janrain and Webtrends – it’s the first wave of a sea change.

“I’ve been watching this space and was really intrigued and interested in how crowdfunding can disrupt some industries that have been around for decades, and transform them for both the supply and demand part of the equation,” he said.

San Francisco-based tech firm Tivix has been developing CrowdStreet’s website for the past year. CrowdStreet co-founder and Vice President of Business Development Darren Powderly, a former broker at Bend-based Compass Commercial Real Estate Services, said Compass was an early financial supporter, as were each of the partners, their families and friends. The group is now in discussions with several venture companies regarding seed money.

CrowdStreet charges developers and owners an up-front fee to advertise their offerings, as well as a small, ongoing subscription fee to pay for the investor-relationship dashboard – a critical ingredient in the company’s platform.

“It’s the ongoing investment relationship management that’s important – not just the access to the deals,” Powderly said.

Another selling point is that CrowdStreet’s fees are roughly 20 percent of the amount that a typical Wall Street investment broker might charge. Powderly thinks the crowdfunding platform will also give people more opportunities to invest in their own communities. CrowdStreet’s next offering will be for shares in a 100-unit student housing complex in Eugene.

The Portland startup is being selective about the companies it partners with, and is working only with those willing to put their own money on the line. That offers security to investors, which is important considering real estate crowdfunding is still in its infancy.

Steen likens the emerging industry to a baseball game that has yet to finish its first inning. Nevertheless, CrowdStreet is swinging for the fences.

“I think it’s going to have a dramatic impact on the real estate investment ecosystem,” Powderly said. “We think this broad-based capital formation that’s not reliant upon a middle man in New York City is really, really important.”