Crowdfunding, more commonly known as crowdfunding, still attracts a large number of investors. It comes with several advantages, and remains accessible to all. Real assets for savers looking for good deals. It will just be necessary to understand the principle of crowdfunding before starting.
Crowdfunding crossed the symbolic billion euros mark in 2020
Crowdfunding has its origins in the United States. Iconic historical monuments have been built using this method. We can cite in particular the Statute of Liberty. Crowdfunding has evolved over the years. It is now accessible to all project leaders. Even individuals can use a crowdfunding platform.
Crowdfunding platforms were very popular in 2019. During this period, 600 million euros have been invested in it. In 2020, the collection volume of crowdfunding platforms finally crosses the symbolic billion euros mark, despite the health crisis.
Real estate crowdfunding is still on the rise. Indeed, 561.2 million euros have already been collected on crowdfunding platforms. Significant funds used to finance mainly real estate projects. It is a growing market with a promising future. The advantages are real, despite a few flaws.
A little reminder on the principle of real estate crowdfunding
Crowdfunding is an innovative investment method. Accessible to individuals, it allows people to come together in order to finance a real estate project. The funds are collected on online platforms. Crowdfunding therefore consists of resorting to public savings. It is generally used to smooth large investments such as building homes for sale or starting a business.
Thanks to crowdfunding, project leaders are no longer obliged to go through banking establishments to finance their construction projects. Enough to allow individuals to embark on a construction project without getting into more debt. Of course, crowdfunding platforms do not generate immediate income. The profits are distributed to the participants (investors) in the form of capital gains at the end of the project.
Precautions to take before getting started
Real estate crowdfunding is an advantageous solution for project leaders. Since the funders are individuals, they are not at risk of getting into debt. Collections close quickly. And the funds raised during a campaign are sufficient to finance different types of projects.
It is easy nowadays to find real estate crowdfunding platforms. However, they are not all created equal. 100% French sites are recommended for security reasons. We are talking about platforms approved by the Autorité des Marchés Financiers (AMF).
As a real estate project developer, you must choose your crowdfunding platform with care. Better to opt for those which already appear on comparisons. They are known and therefore are reliable. Don’t forget to check the user reviews to weigh the pros and cons. Their opinions will be very useful to you in order to optimize your choice. This detail must therefore be taken into account before taking the plunge.
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