Before real estate crowdfunding, it usually meant that those with wealth or a network were the only ones able to invest in property. As real estate crowdfunding started to develop, this began to change - now, property investment across a larger asset class was available to a wider pool of people.
Real estate crowdfunding brings together a 'crowd' of people (Investors) to raise capital for a project proposed by a Property Group. These Investors can choose what they invest in, how much they invest, and also invest the funds completely online. On the other side of the equation, real estate crowdfunding provides another means for Property Groups to access capital for their projects outside of traditional networks and banks.
As mentioned above, real estate crowdfunding allows property groups an alternative way to raise capital from an entirely new network of individuals and companies. Particularly in a time where Banks are becoming more restrictive in their lending, CrowdfundUP fills the void of the Banks and opens the funding to a wider range of Investors.
Real estate crowdfunding platforms allow for different types of investments, such as equity and/or debt, in addition to varying asset classes (Commercial, Residential) and also locations right across Australia. Diversity in your investment portfolio is important - we had a chat about it in this Blog post here if you want to find out more. Diversity in location, length of investment, investment amount and asset class mean you're balancing your portfolio and this hopefully will also work to mitigate any riskier investments as well as any changes the market may see over the course of your investment lifecycle.
CrowdfundUP does the due diligence on every Property Group and Project that comes through the platform and only lists those that have been pre-vetted and are of a high standard. For Property Groups, we manage the entire process - including Investor relations, reporting and investment management.
At a time where everything is becoming more technologically advanced, real estate crowdfunding embraces the use of technology too. CrowdfundUP's online platform manages the entire investment process - from initial investment interest, through to Investor identification, all legal documentation, signing of documentation, funds transfer and auto-investing capabilities. With real time data on Investment performance and detail available in the Investor Dashboard, it means Investors are able to stay up to date across all stages of the investment.
To view CrowdfundUP's latest investment opportunities, visit the Project Page here.