How To Start a Real Estate Crowdfunding Platform

Commercial, residential, buy-to-let real estate crowdfunding platforms are disrupting the traditional methods of funding and investment in real estate. These platforms allow investors to crowdfund and invest in commercial, residential and buy-to-let properties.

The main purpose of these platforms is to provide a means for people to invest in real estate without the need for a large initial capital investment or expensive due diligence process.

The rise of crowdfunding has created a new way of funding that is democratising access to investment opportunities

Even though real estate field, is one of the most competitive niches in crowdfunding market, it is still a highly popular and viable business. If you're currently planning on starting one, this post will perhaps help you with some market insights that we have noticed in the last couple of years.

Starting a Real Estate Funding Platform

In order to create a successful real estate crowdfunding platform, it is important to have an understanding of what the industry is about. Understanding these specifics will help you create a better idea of what your goals are and how you want your business or product to be perceived by potential investors.

What exactly is a real estate crowdsourcing site?

A real estate crowdfunding site is a platform that offers investors the opportunity to invest in real estate projects. Investors can invest as little as € 50 and they are repaid with interest over time. The advantages of investing in real estate through a crowdfunding site are that investors can diversify their portfolio and avoid the high costs associated with traditional investment strategies.

Most real estate crowdfunding sites offer the opportunity to invest in multifamily, commercial and industrial properties.

Largest European Real Estate Crowdfunding Sites

EstateGuru

EstateGuru is definitely one of the most successful European real estate websites. Based in Estonia, they have a lot of investment options with bullet payment schedules, which means you'll start receiving your passive income right after investing your money. 

They also have a pretty good auto-invest tool, thus if you want to same some time, make sure to check auto-invest at EstateGuru. One more thing worth mentioning - EstateGuru have some good interface features, that stands them out among other platforms on the market.

Rendity

Rendity is a platform focused on German & Austrian real estate markets. In these turbulent times, it is recommended to consider investing in solid markets such as Germany and Austria. The German economy has remained robust, with growth rates that are among the highest in Europe. In addition, German companies have been investing heavily in new technologies and innovations.

Reinvest24

Reinvest24 is an Estonian company, that started by focusing on Estonian projects, but now they have expanded to offer projects also. Real estate offers from Latvia, Moldova and Spain are currently also present on platform.

They boast up to 14% interest rates, which is frankly massive under current market conditions. 

Main Points of a Successful Real Estate Platform

• Registration
• Investor's account
• Market (secondary market)
• Auto-Invest
• Property page
• Investing process

Think of these as pages (some might be multi page) and these pages are critical to your investor's successful investment. Think of it as a funnel, and each page has to be perfectly optimised in order to have high conversion rate. 

Software For Real Estate Crowdfunding

When it comes to choosing software provider, you have multiple options here. Either you work with software provider, who knows all ins and outs of the business (like us for example) or you can always go "self-code" route, which obviously has its advantages and disadvantages. Here is our other post, that into more details about whitelabel vs source code not only in crowdfunding/p2p lending platforms.