When you think of real estate projects, you might think of large-scale endeavors that require hundreds of thousands of dollars. If you’re running a project like this, it’s challenging finding people to fund your venture. If you’re looking to invest, it’s hard to find projects that accept investors that don’t have tons of money to contribute. This is where crowdfunding platforms comes into play. By relying to small contributions by hundreds – if not thousands – of investors, large-scale real estate projects are funded and made possible by smaller entrepreneurs. Here’s some places to consider when pursuing crowdfunding opportunities.
RealStarter is a crowdfunding platform that let’s you invest up to $1,500 per project. Anyone at least 18 years old living in Quebec, Nova Scotia, British Columbia, or New Brunswick can invest. Most investments last between 12 and 36 months. If you’re looking to secure funds, RealStarter has a seven step application process. Starting with a preliminary evaluation, you are critiqued on your eligibility and subjected to an evaluation committee before you can sign contracts. Once you’re approved, you’ve got your online release, fundraising campaign, and wrap-up of the project once you’re done.
FundingNomad is another fairly standard private investment platform. If you’re looking to invest, you make a profile, browse available investments, choose where to put your money, and track your real estate projects through a personalized dashboard. FundingNomad let’s you participate in projects valued as high as $50 million. If you’re wanting to secure money through crowdfunding, you have the option of requesting specific types of investors such as institutional investors. FundingNomad provides due diligence, reviews your project, posts your listing, handles the administration of funding, and even performs global marketing.
Accredited investors are welcome to use Open Avenue to invest in real estate projects. To join, you have to have a net worth of at least $5 million and meet certain net income levels. These requirements are set by the Ontario Securities Commission. If you’re able to join, you contribute at least $10,000 per project. On the flip side, Open Avenue restricts the number of potential investors you can attract with your project through compliance with Canadian investment regulations. Your investors usually get an equity stake in your building.
Finally, NexusCrowd hosts exclusive private investment opportunities. NexusCrowd will manage the investment and provide quarterly reports. NexusCrowd relies on relationships to make its platform different from others. It relies on partners such as Dorr Capital, Downing Street Group, Neuhaus Developments, Terracap, and Vector Financial Services. These partners are required to participate in projects; in addition to giving a thumbs up that a real estate project is good, each company has a financial stake in the venture just like you. If you need money, NexusCrowd ensures each investment reaches at least 50% of its funding target. After performing due diligence, NexusCrowd’s partners manage each investment.
It’s easy to be intimidated by $50 million real estate projects. If you’re trying to build something, it’s tough to lure in investors. If you’re trying to invest, you might not have enough money to be considered a principal investor. By using the crowdfunding platforms above, you have the chance to raise money or earn money by participating in real estate projects.