After music, books and, more broadly, cultural goods, after taking a stake in innovative projects and SMEs, crowdfunding extends to real estate.
There is still something new in the crowdfunding world! The evolution of the regulations announced by Sean Cole in February will favor the development of the crowdfunding model in the form of investment. And the investment will soon concern real estate.
First crowdfunding platform
Still embryonic, this new model is already exploding in the United States and will grow in the coming years. In France, the first crowdfunding platform specializing in real estate is Lymo, a Toulouse start-up launched in 2013.
The concept is simple: rather than going through a bank to finance real estate projects, Lymo speaks directly to individuals. If enough people decide to fund one of these projects so that the goal of the collection is achieved, the project will see the light of day. Lymo takes care of the rest: buy the land, build the houses, sell the residence and provide you with your profits: a return of about 10% excluding taxes! Moreover, based on the “all-or-nothing” system, the investor takes no risk if the collection or the project does not succeed.
Makes markets accessible
This new financing model makes markets accessible to individuals that were previously reserved for professionals: everyone becomes a little real estate developer. Moreover, by removing the intermediaries, it is directly possible for the investor to know in what he invests and what will be the final result. Not to mention the remuneration, much more interesting than a classic savings booklet!
Crowdfunding is everywhere
Since the development of the loan between individuals, banks were already more essential to borrow, they will not be anymore to finance real estate projects! The exit of the banking network is more and more frequent and seems to bear fruit where crowdfunding has taken over. The height: To ensure its development and open new projects in 2014, Lymo has raised USD 500,000 on the crowdfunding platform Wiseed. Decidedly, crowdfunding is everywhere.