EQUITY CROWDFUNDING FOR REAL ESTATE
We are living in a turbulent time when interest rates break all low records and we can no longer trust in the medium-term stability of the currencies. Therefore, more and more private investors are looking for investment options in property. Especially in recent years, the investment in houses and flats developed into a popular alternative. More than 7 million Germans have already invested parts of their savings in real estate — and due to the innovative concept of crowdfunding for properties this number is likely to rise even further.
CROWDFUNDING FOR REAL ESTATE — WHAT DOES IT MEAN?
Crowdfunding is a concept, which children already use intuitively. Maybe you can still remember: Everyone can spare a little of their pocket money. But it is not enough for the desired big bag of sweets. What do smart kids do? They pool their money and buy the bag together, in order to share the content.
Adults mainly use Crowdfunding for start-ups but also for art projects. It's a simple, but powerful idea: Instead of one Person investing a great sum of money, many people or a crowd contribute a small amount.
Depending on what the agreement is, the investors receive at crowdfunding a consideration equivalent to their investment. For example at music projects it can be an exclusive “living room concert” but also CD’s and merchandise. When financing a start-up, most of the times a profit share is offered. For the acquisition of the required assets an exact time frame is being drafted. If the financing is not achieved, the already deposited money is transferred back.
EXPORO now refined the idea of crowdfunding for real estates. It basically works the same way: Newly built houses or real estates that have to be renovated are financed with crowdfunding. When the project is finished, every investor is paid back their amount of investment plus the agreed interest rates.
WHY CROWDFUNDING FOR REAL ESTATE?
The investment in real estate is a rewarding option, but has in its previous form a significant disadvantage: To be a real part as an investor of the project, you have to invest a quite high individual amount. An alternative is to pay money into a real estate fund. But there the rate of return depends on the overall market trend, the skill of the fund management and last but not least the “administrative costs” of the fund. With the concept of crowdfunding for real estate we developed an alternative that enables you to follow your project precisely at any time even with small amount of investments — and that with a pre-established fixed interest rate.
THIS IS HOW CROWDFUNDING FOR REAL ESTATE WORKS
When using crowdfunding for real estate the investment sum is likewise made out of many minor amounts. A typical procedure is:
- You choose a project on our webpage www.exporo.de in that you want to invest via crowdfunding.
- From the beginning extensive information about the project is available: about the property, the runtime, the financial plan, securities, the micro and macro location.
- You decide how much you want to invest. Usually the minimum amount is just 500 Euro.
- While the construction is going on, you will have insights to the process at all times. Additionally, we will give you news about all milestones of the project development.
- So you are very close to the action at all times!
- After project is finished, you will get your investment back - of course with the pre-established interest rate
CROWDFUNDING FOR REAL ESTATES — YOUR ADVANTAGES AT A GLANCE
Crowdfunding for real estate is a modern, contemporary investment method that is especially for private (small) investors attractive.
- detailed information before deciding on a project
- high level of security since only projects with a bank financing and a building permit are approved
- the participation at the crowdfunding for real estate is at EXPORO already possible with just 500 Euro; exactly defined short-term maturities
- attractive, fixed interest
- first-hand experience of the project development
- participation in a sustainable project, which result you can see by yourself