CrowdFunding: Shared Investing. The newest trend of Investing in Real Estate

Last updated: 17.12.2021
Shared Investing or as it is known Crowdfunding is based on the concept, that a group of Investors are financing a specific Project. Every individual investor can participate with its own sum of funds that he feels comfortable with or has and after the project is completed, he receives all of his invested sum back, plus percent profit. The percent profit depends on the total Profit and what percent of the total, one had invested.  As an example, if specific project made a profit of 100,000 leva and one investor did invest its own sum which is equal to 10% of the total investment need, then he will receive back all of its own investment plus 10% of the total Profit of the project or 10,000 leva

The usefulness of this type of funding is mainly in the fact that not every one can finance a certain type of project, due to restrains of not enough funding, time, knowledge or lack of experience but a group of investors can join their small investments to achieve the total funding required to start the Investment project.

Here will take a look of crowdfunding in Real Estate, which has revolutionized the investment practices in Real Estate.

The Real Estate is going up and becoming more expensive. Maybe you would like to take part in this trend and make profits. However, you might be worried that you are too late or that you have no time or that you have no knowledge in this field. Maybe you do not have enough funds to buy a land and build a building or a home and to then sell it for profit.  Maybe you have the necessary funds for investing in Real Estate but you want to participate from the Building faze, where the most profit is made. No problem, now there are many ways to participate and to profit from the increasing prices of Real Estate and maybe to become Construction Contractor even if you only have 5,000 leva for investing.

In the Environment of High interest towards Real Estate, which have been the last several years, it is logical that new types of investing in this area have appeared, like the CrowdFunding platform.

This type of platform gives the small investors a new way of investing and participating in the market of Real Estate, even if his funds are not enough to buy a one piece of land.

The industry of CrowdFunding is fairly new in Europe. Even that names like shared investments and crowd funding are already often used in these modern times they still do not have exact definition and legal regulation.

However, the industry of alternative investment is developing at a very fast pace. Due to this fact many very good ideas are made public and get publicly financed when that is necessary.

How successful specific pro
ject is, depends largely on how motivated is the person organizing it and how good is his idea. If he truly believes in his idea then he can share it with the public and stand his ground, defend his point of view and idea by answering to questions by investors and scrutiny by the critics.

In this Environment of great competition, only the really good products and ideas make it. They also need a great presentation of the busines plan in front of the Investors.

A group of investors from all sorts of life, can quickly distinguish the good projects that will make it. They can also self-regulate themselves and quickly exposing and punishing fraudsters among them.

The Crowd Funding type of financing gives exposure and chance to the investors to many and different ideas, including such of developing markets, where many new opportunities can be found.

Crowd Funding is a practice for shared investing for a specific project, gathering funds from large number of individual small and large investors, organized through Internet, based on web based protected platform.

The model of this type of financing is initiated by three types of participants. First participant is the Initiator or the creator of the project, whom is laying out his idea or financial project. Individuals and/or groups of people how liked the project and are willing to back it up and financing it and finally from the Moderator of the platform, who connects both sides.

Crowd Funding for Real Estate is described as an Online gathering of private individuals to finance projects based on Real Estate Investing.
Top 5 positives of the Crowd Funding

  • Optimization of the Financing – 100% from online profits. You can pick and choose your transaction very easy and from your own comfort.
  • Proportionate profits - no matter if you invest only 2,000 Euros or 200,000 Euros. The profits are measured in Percent from the total Profit of the Project.
  • Access to all the information- You can access all the necessary and available information to make an informative and logical investment decision. The information is presented in generalized and structured way and everything you need to know.
  • Able to Compare – When you search through the investment opportunities within the platform you can see if and how many other investors are already taken part in the different projects and not be left on your own to guess between the different options. You can also see the ratings from the other future investors. This way if many investors have chosen a specific investment product most likely it makes sense to invest in it and the opposite is true, where if a project does not have much support from individual investors then it may not make sense to invest in it.
  • Diverse choice – The ability to be able to choose from a large pool of projects will help diversified your risk of your investments.
If you want more information about one of the Best platforms for Crowd Funding for Real Estate, search for the projects, which have been available for Financing.