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Real Estate Crowdfunding – Invest in architectural projects
10 Oct 2019
Real Estate Crowdfunding Advice
Invest in architectural projects with real estate crowdfunding
Crowdfunding has proven itself so far, and recently, this type of project financing has also taken root in the real estate sector, and for small investors for the first time, an opportunity to focus on individual real estate projects has appeared.
Crowdfunding relies on the financial power of a very large number of people. Many investors invest small amounts in the project, and receive income for this in the case of real estate, depending on the risk of the project. The lender with the risks of the project is responsible for this.
If you are not new to the real estate sector, you probably will not miss hearing about crowdfunding real estate. The purpose of this guide is to help you understand how and where to invest in this system. In a sense, this should be considered an excellent investment opportunity to earn and share your capital. This can be a great investment plan, at least for the foreseeable future.
All about Real Estate Crowdfunding
Crowdfunding works very simply. If you have a project, you can promote it on the network and ask network users to offer money to help you get started. For the loan, they receive in return a share in the company in case of equity participation, while they will receive an increase at the time of repayment in case of lending based. If you want to invest, you can buy shares related to companies involved in the operation, or finance them with a business loan.
Real Estate Systems Crowdfunding is a special type of real estate investment that was first born in the USA (2012) after the Jumpstart Law on our business startups was approved.
Crowdfunding was indeed another form of investing strategies in the real estate sector. It represents a real significant upgrade of the Property market primarily after what happened during and after the 2008 crisis.
However, not everyone knows that crowdfunding should be seen as an unconventional form of investment financing. It aims to collect goods funds directly from the team, from entities that participate with small amounts of capital before the implementation of the project.
Parties involved in the investment are three:
- Project sponsor
- Persons who support the project with their capital
- An intermediary company such as Crowdestate (launched for the first time in Estonia in 2014) whose purpose is to manage an online platform, market
Obviously, this investment has become possible today thanks to the Internet and new financial technologies.
This principle is applicable to real estate investment, allows all those who want to invest in the real estate sector from making investments without buying and owning real estate. This means that you can also invest in a strong growth sector, even if you do not have high capital. Thanks to this system, the real estate sector are open to all those who do not have investment experience.
Real Estate Crowdfunding Investment Models
Given the above, briefly analyze the topics related to crowdfunding, all you need to do is move on. First of all, however, you should keep in mind a small detail. At the moment they exist 4 different crowdfunding models. We will briefly analyze them below.
- Donation crowdfunding
This is a system designed to collect donations to fund projects for social or cultural purposes. This does not provide any economic benefits for investors.
- Crowdfunding Awards
Very similar to the previously reported, but with a significant difference; In exchange for the donated amount, the investor receives a reward. This is usually a product or service.
- Promotion crowdfunding
This is a system that allows financial startups e PMI. This is achieved by providing a financial contribution in exchange for shares of certain companies of the same companies. Thus, he becomes a full member.
- Crowdfunding Lending
Finally, the last system investigated claims that the money invested in the name of a loan to finance individuals or companies that return the capital received with interest.
Finally, we also found that inside the Crowdestate platform, you can access the secondary market which means that you can withdraw from investments in Collective financing before the expiration of their validity and, therefore, they can be sold to other investors. -Another option would be a Bridging Loan.
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