All about real estate crowdfunding

By | April 6, 2021

Doing everything collectively is a trend in the market and real estate crowdfunding is like this: micro investments that anyone can make to participate in the sector.

Crowdfunding is a system made to invest in the real estate sector, managed through platforms where it is possible to select the types of investments and execute them.

Most of these activities involve the purchase of properties to be remodelled and then sold at a higher price, so that this represents a significant profit for all investors.

The central idea is to give the opportunity to anyone to bet on a safe business and to be able to compete with banks and other institutions that have great fortunes.

There are small investors who see in this Internet niche the possibility of obtaining better profits, because to begin with, it is much easier for a person to start the search for their new home online, be it houses or apartments.

In addition, a collective investment is capable of financing projects of all kinds, since from the beginning it specifies the necessary amount to which various stakeholders can contribute who will invariably charge their original capital and more.

The first step of crowdfunding occurs when the company or entrepreneur presents a prototype and makes it public domain so that whoever sees it is interested in it and contributes the amount they consider profitable.

The totality of the money that the investment requires tends to have few risks because it does not exceed the characteristics that a common development represents.

In Mexico this modality is still not explored enough, but it would be worth trying, since high returns are received in the future for a small amount of initial capital.

The cities where companies that promote collective funding already operate are the three most important in the country: Mexico City, Guadalajara and Monterrey, where the value of real estate grows exponentially every year.

It should be noted that in Mexico City, for example, there is a demand for about 40,000 homes, but there is only a supply of half, that is, approximately 20,000.

So, investing in meeting this need is very necessary. The minimum amounts range from 5 to 10 thousand pesos with a yield of almost 18% per year, which opens a new opportunity for people who have some savings and still do not know what to use them for.

Whoever invests in a crowdfunding regularly is between 25 and 45 years old, that is, they are at a productive age and find a future retirement solution.

To participate. Normally, the first thing that the future investor is asked to do is register on the portal or platform. The personal data and a collection account will be enough to register.

Types of crowdfunding

Investment

You provide capital in each new project to continue participating.

Loan

You provide money for loans that will later benefit you with interest.

Reward

It applies to commercial ‘barters’, that is, to contribute money to obtain a product or service.

Donation

There is no profit as such because it goes to support social causes.

Characteristics of a successful real estate agent

Since 2013 we work with people who are highly dedicated to the real estate sector, we have detected that they all share certain characteristics that make them stand out from the rest within the medium.

These are the points that make them successful.

They face restlessness with a good attitude.

The sales sector is an extremely volatile job and at times stressful, each day is a different challenge. The future of the market may change day by day but being able to confront every day with a good attitude not only attracts good things but is also a reflection that you give to the customer.

They are professionals all the time.

You can have an incredible relationship with their clients, but the line that separates the good treatment of a friendship must be clear. Know that your role is as a real estate agent, not a lifestyle advisor, or a motivational coach.

They avoid getting carried away by emotions.

The job of an agent is to advise and accompany the client to successfully complete a purchase or rental. It is extremely important that the communication channel is adequate, to provide useful information, presenting a why, but also a why.

They are not discouraged.

To be completely honest, getting disappointed after not making a sale is one of the bad moments for any agent. But it is important that you do not get hooked on that feeling, but rather that you learn what areas of opportunity you can improve and apply them in the future.

They believe they are the most capable and are associated with the best.

As we mentioned in previous paragraphs, what one reflects to the client and his colleagues in this medium is extremely important. If you feel successful, you reflect to be; of course, without crossing arrogance. Learn every day and being constantly improving within your profession is the key.

In this, like any other profession, it is extremely important to be committed, have passion in what you do, humility and enthusiasm. The key to success is being willing to work hard and improve.

3 options for investing in real estate.

The profitability of a property depends on several factors and there are types of investments that you should know.

 

Although the growth in profits that comes from buying and renting a property also depends on the status of the market and the country’s demand, the reality is that investment can reduce economic uncertainty.

During 2019, a low growth is expected that will be on average 1% of the Gross Domestic Product, if true, there is nothing more certain than to think of real estate as a kind of life insurance, an activity that can be easily capitalized.

The investor must take into account that before putting his capital in a property, he must know how to choose it, that is, that the property is in a favourable condition and an attractive location.

People will prefer to live in a place that is well connected, safe and close to their work centres, shops, clinics and schools, then in any other that, even if it is cheaper, does not have all these characteristics.

According to the Tajarat properties real estate portal, there are three most common types of income investments:

Residential investment

The purchase of houses or apartments is an investment that allows generating a return through leasing with a profit of between 3.5 and 5% depending on the segment to which the property belongs: low-income housing, medium-interest, residential, residential plus or premium.

Investment in offices

Currently, offices for rent are a trend, since rental contracts can be established for more than a year and it is an emerging market that has gained strength in some cities with stable economic development.

It must be taken into account that its high profitability also depends on the growth of the area where it is established and its economic development. The profit that can be obtained if it is an independent office is approximately 6% and if it is in a building it can reach 5.5%.

Investment in commercial premises

Commercial premises are profitable in the long term; however, this does not represent much difficulty because there are usually many interested merchants.

The profit ranges from 3 to 7% if it is considered that it can be a commercial premise, commercial land or a premise within a square. It should be noted that many commercial zones in areas that are experiencing extensive economic development are handling high prices that may only be accessible to investors with a large disposition of capital to invest.

The real estate market has an opportunity with the demand for medium and residential interest properties.

The contingency due to COVID-19 has raised doubts about investment in real estate marketing strategies, so far, paying for advertising in digital media remains an excellent alternative.

The number of potential clients received through segmented digital campaigns and advertisements has not decreased and in some cases has even increased, as in the case of properties in the residential and medium-interest segments.

 

 

Experts from the real estate portal have detected that from March 2018 to March 2020 there was an increase in searches of 36%, taking into account that the behaviour of real estate searches is seasonal (it is usually the same every month of every year) so that it can be seen that during the quarantine the increase in traffic in real estate portals has been significant.

Today more than ever, people seek to invest in real estate, since with the fall of the peso, the money that is in their accounts will continue to lose value, while a property will increase or retain its value according to the capital gain of the area in where you are.

As we have mentioned, 95% of people looking to buy or rent real estate, start their search process on specialized portals. For this reason, it is not uncommon for many people to be looking for a property right now.

Real estate companies like capital smart city Lahore establish a direct and immediate connection between the developer or real estate agent and the potential client, which allows to provide a timely follow-up.

In addition, through photos, videos and virtual tours, they make it possible for the user to know the property without having to visit it. People spend more than 60% reviewing the images and audio-visuals of the properties and this represents up to 70% of the purchase decision.

Federico Cerda’s, serial real estate developer of Global Businesses Inc. tells us about the use of the internet: “New technologies and portals have accelerated and expanded the acquisition of clients, guaranteeing quality commercial strategies according to the profile of each investor”, with which It is clear that during this situation it is appropriate to use these tools.