Real Estate Investors FAQ's

What is CrowdfundUP?

CrowdfundUP is Australia's first Real Estate Crowdfunding platform. We introduce Investors to our premium Property Group Partners looking to raise capital for their next real estate project. Investors can easily browse investment opportunities, explore background information about Property Group Partners and communicate directly with key personnel responsible for the project. The best part? You can invest in property investment opportunities entirely online!

How do I start investing on CrowdfundUP?

Once you have registered your account on CrowdfundUP, you will be able to view investment opportunities on the CrowdfundUP platform and discover our Property Partners. When you are ready, you can invest in your preferred amount into any investment opportunity, entirely online.

I have created a retail investors account, why can't I invest in all of the projects?

There are various reasons for this. Some projects are only open to Wholesale/Sophisticated Investors and before you can invest in these projects, you must first register as a Wholesale/Sophisticated investor and fulfil all requirements of the definition. Alternatively, the project may have already reached it's limit for retail investors, as per the Australian law. CrowdfundUP takes every step to ensure it is compliant with Australian legal framework.

What is a retail Investor?

A retail investor means a ‘retail client’ as defined in the Corporations Act 2001 (the Corporations Act).

All persons (whether a natural person or a legal person) are ‘retail clients’ unless provided otherwise in the Corporations Act. E.g. A person may have ‘Wholesale’, ‘Wholesale’ or ‘Professional Investor’ status if they meet the relevant requirements in the Corporations Act for claiming that status.

CrowdfundUP does not certify users or potential investors as to their investor ‘status’. Potential investors are encouraged to seek their own legal advice if they are uncertain of their investor status.

I am a retail investor, can I still invest on CrowdfundUP?

Some of the investment opportunities listed on CrowdfundUP will be open to retail investors, subject to any limitations in the Corporations Act or other applicable law in relation to the number of permitted retail investments (usually up to 20 in any 12-month period).

What is a wholesale or sophisticated investor?

You are a wholesale or sophisticated investor if you can provide a copy of a certificate given within the preceding 6 months by a qualified accountant that states that you have either:

Net assets of no less than A$2,500,000, or

A gross income for each of the last 2 financial years of at least A$250,000 per annum (the amount specified under Regulations 6D.2.03 and 7.1.28 of the Corporations Regulations 2001).

If you meet these requirements, you may be able to register as a wholesale or sophisticated investor. Registering as a wholesale or sophisticated investor is a simple process. We will send an email to your accountant who can certify you online. Wholesale investors have access to a wider range of investment opportunities on CrowdfundUP.

What an I investing in?

Generally, investors are offered either shares in a company or units in a unit trust. The Information Memorandum for the particular project will fully explain the structure of the investment.

Are all CrowdfundUP investments the same?

No, each project listed on CrowdfundUP is unique. Projects may offer different classes of interest (shares or units).

The rate of return offered by individual projects will differ depending on a variety of factors such as the risk profile of the project. Projects may offer different investment return models such as a set rate of return or a return relying on capital appreciation of the project.

Potential investors should read the Information Memorandum for the relevant project to understand the specific risks of investing in that project. In general, any project listed on CrowdfundUP may be subject to substantial investment risks, including possible loss of income and capital invested. Investors should consider investments in projects to be speculative and should obtain their own legal and financial advice in relation to investing in any project listed on CrowdfundUP.

If I invest in a real estate project, will I be on the Title of the Property?

No, your name will not appear on the title of the property. The name of the entity purchasing and developing the property will normally be included on the property’s title. Your name will be listed on the ownership documents of the entity that develops the property (i.e. in the share register or unit trust register, depending on the nature of your investment).

Does CrowdfundUP issue shares or units in the projects?

No, CrowdfundUP does not issue any interests in the projects listed on our platform. Our Development Partners are responsible for issuing the specific interests in their projects.

How do I make an Investment?

Once you have created your account on the CrowdfundUP platform, you will be able to access and view Investment opportunities. Upon browsing and reviewing the investments and deciding you would like to make an investment, click the 'Invest Now' button and you will be directed to acknowledge CrowdfundUP's Terms and Conditions. Once acknowledged, you will be asked how many shares or units you would like to purchase, and then be asked to deposit funds into your Digital Wallet. From here, we will help you draft your formal 'Expression of Interest' letter to the Property Partner entity indicating your interest in the project.

You are able to sign this letter once we have verified your identity using our ID partners, Green ID. Once this verification has been completed, you will then be able to send your Expression of Interest documentation to the Property Group, who will review your letter and then send you a formal 'Offer' document to invest in the project. Upon this, if you decide to accept their offer, we will then help you prepare an 'Acceptance' letter and provide you with a payment link.

When do I receive returns?

The profile page of a project and its attached information will detail when returns will be paid.

How do I receive my returns?

Returns will be paid directly into your nominated bank account or otherwise as agreed between you and the project owner.

If a Project is highly popular can the developer take more funds?

No, once a project has gone live then it must only accept the funding that it originally sought.

Can I invest through my SMSF or a Company?

Yes. You can nominate an SMSF or Company when you are drafting your formal letter to one of our Development Partners.

What is the minimum amount I can invest?

Our Property Groups set the minimum amount that can be invested by an individual Investor. The minimum investment amount ranges from $1,000 (AUD) upwards.

How do I manage my investments?

Once you have set up your CrowdfundUP account and invested in projects, you can see and manage all your investment information through the Account Dashboard, including your portfolio performance, distributions and reporting.

How do I withdraw funds from my Wallet?

You can withdraw funds from your Wallet at any time by logging into your CrowdfundUP account and making a withdraw request.

What are the fees?

There are no fees for Investors to invest via the CrowdfundUP platform.

How are investment opportunities chosen?

CrowdfundUP only partner with premium property groups after a detailed due diligence process is conducted. Additionally, each investment opportunity from our property partners is selected based on a number of factors, including property characteristics, suburb growth, yield returns, market conditions and independent data.

Property Groups

I'm interested in having a Property Group profile page, what do I do first?

The first step to creating a Property Group page is to create an individual CrowdfundUP account - this takes less than a minute. Once you are logged into your account, you can create a property profile page from with your individual profile page.

How does my company qualify to become a CrowdfundUP Property Partner?

When assessing the suitability of a Property Group for our platform, we take into account a wide range of factors including:

  • Previous experience in the market;
  • Whether the Property Groups holds an AFSL;
  • Key personnel;
  • Current portfolio size; and
  • Ability to build a viable crowd of investors.

For more information or if you have a project you would like funded, please email admin@crowdfundup.com

Does it cost anything to create a Property Group Profile page?

No.

Can I invite my colleagues to join my Property Group profile page?

Yes. You can invite other personnel to join your company's profile page by clicking the invite key personnel button in your company's profile page.

The team members that you have invited will receive an email invitation containing a link to accept your invitation to join the company’s profile page. If they do not already have an individual CrowdfundUP account, they will be prompted to create an individual account before they are added to your company profile page.

I have submitted my Property Group profile page, what happens next?

We will be in touch with you to discuss your company profile page and possibly ask a few questions to make sure that your company is the right fit for the CrowdfundUP platform.

We may make a few recommendations regarding your company profile page that will help you maximise investor traffic to your profile.

Once this is complete, your company profile page will be activated and you will be able to submit projects on our platform.

How much can be raised through CrowdfundUP?

CrowdfundUP raises funds for projects generally within the range of $500,000 to $5 million.