Thanks to advances in the technological sector, the real estate market has benefited from the arrival of new investment schemes. One of the most attractive is crowdfunding, a model that not only makes the possibility of investing in the real estate sector within reach of a click, but also helps crowdfunding democratize real estate investments by making the amounts necessary to enter more flexible and allowing more people to have the possibility of participating in this industry.
During the recent broadcast of Real Estate Investments, KarimGoudiaby, Founder and CEO of the digital real estate company Neximo, spoke with the CEOs of three of the main real estate crowdfunding platforms. The experts commented that this model came to demolish the idea that investing in real estate requires large amounts.
Alberto Padilla, CEO of briq.mx, highlighted that crowdfunding stands out today for being a model that opens up the possibility of investing with very small amounts, compared to what was used in the industry. Furthermore, it is a model that allows investing in important real estate projects with interesting profitability.
Pooling the money as if it were a large investor
“Crowdfunding is a method that allows you to have access to a type of investment, in this case, a real estate investment with very small amounts. How does it happen? Pooling the money of many people to function as if it were a large investor in projects that someone brought the public closer,” the CEO said.
He added that crowdfunding makes it possible to address one of the basic rules of investments: diversify. Anyone who wants to put their money to work must think about having several fronts that allow them to reduce risk and maximize results.
“One of the basic things in investments is diversification; it is one of the important elements to be successful in the long term. As real estate is an asset that, if you enter on your own, requires a lot of capital, it becomes difficult to diversify,” commented Padilla.
Therefore, one of the advantages offered by the model is the guarantee that the projects in which it is invested have been analyzed and prequalified, which seeks to guarantee the success of the operation.
In turn, Simon Dalgleish, General Director of M2Crowd, highlighted that crowdfunding arrived as a great investment alternative. Although there is a very strong culture of investing in real estate, the problem was that, to enter, it was necessary to have large amounts of money to be able to acquire an asset.
“People prefer to invest in real estate than in other types of instruments, but the problem is that typically the money is not enough because normally to invest in real estate you need one. What you are doing real estate collective funding is to allow, from a small amount, to participate in the returns generated by real estate investments,” said the manager.
He stressed that Crowdfunding democratizes real estate investments, and also provides the guarantee of betting on projects with great potential. Crowdfunding platforms are made up of a team of specialists that allow the selection of suitable projects that offer significant profitability.
“The platforms are supported by a team of real estate experts, specialists who detect trends in the market, so the projects in which they are invested have already had a detailed review; in addition, to invest, it is a very simple and in accordance with what the regulations establish,” Dalgleish highlighted.
A gateway to great projects
During the intervention of David Agmon, CEO of Monific, said that crowdfunding democratizes real estate investments, and interested parties also have the possibility of investing in high-level projects, a situation that was previously complicated by the high capital requirement. There are platforms that allow you to invest in tourism projects, be partners of hotels and benefit from the profitability they generate.
Crowdfunding, he continued, is emerging as a very attractive scheme for various reasons. For example, investors can earn both from the flow of income that the projects generate, as well as from the capital gains that the properties earn.
“We decided to enter the tourism sector because Central America has great wealth and betting on beach areas means that in these areas the capital gains can reach double-digit annual growth. In the medium and long term, investing in this type of property generates capital gains much superior,” said the expert.
Regarding the regulation that was put in place for this type of platforms under the Fintech Law, specialists agreed that it is beneficial. Although it has involved a significant effort on the part of the platforms, the regulation comes to give certainty to those involved, both platforms and investors.