You have 2000 euros to invest, you have heard about real estate crowdfunding and its many advantages, but you don't know where to start? Here is a short practical guide, which describes, step by step, how to invest in real estate crowdfunding.

1. Find out more

The investment sector may seem inaccessible to the novice, who often prefers to entrust his savings to his banker... for an almost zero return . It is true that, to invest in the stock market, for example, one must master the subtleties, and this is not easy. The operation of real estate crowdfunding is much more accessible, since the investor knows in advance how much he will receive and when. But, there is no question of subscribing to it with closed eyes: it is imperative to know the functioning and the risks of a project on which one invests. Reading didactic articles will allow you to know everything.

2. Choose the platform

On the real estate crowdfunding market, there are about 250 platforms, but only about twenty that are financially solid. To be sure of their reliability, you just have to check the platform's certification, the most recognized being that of a Participatory Investment Advisor (CIP). Another parameter to take into account is the default rate of the platform, which calculates the number of projects that are late or default on payment - with a preference for zero rates regarding capital loss. You can usually find this information by looking at the " Performance Indicators "of the platforms. Be careful, prefer platforms with experience (at least a hundred operations financed) for more than 4 or 5 years.

To summarize, favor a CIP platform created before 2016 with over 100 funded cases and 0% capital loss with an average return above 9%.

3. Sign up

In order to access the details of the projects, a registration on the platform is often mandatory and above all a sign of seriousness. In addition to your contact information, you will receive an initial warning about the risks. You must confirm that you are aware of the dangers (loss of capital, illiquidity, change in legislation) before proceeding. And the platform will give you some advice: diversify your investments, do not invest all your savings and use sums that you do not need in the short term.

4. Choose the project

In general, the crowdfunding platform proposes projects to investors one day before the launch of the operation. Thus, the investor can make a first opinion, it is advisable to pay particular attention to the overall profitability of the operation, the duration of the project (coherence with the project), the amount to be collected (are there enough funds to complete the operation with unforeseen events), the type of project (residential or commercial for example), the profile of the entrepreneur and his experience (avoid promoters with no experience), the level of marketing, the guarantees, the legal set-up...

Generally, by clicking on the project in question, the details are displayed and you should find the answers to the points of attention. The consultation of this information and the support of the advisers of the platform allow you to make your choice.

Overall, keep in mind that to limit risk, the rule is to diversify your investments. Ideally, invest in several operations, between 10 and 20.

A little tip: on the leading platforms in the market, operations are financed very quickly (a few hours), so there is not necessarily a permanent offer, but these platforms launch files every week, so you have to be ready.

5. Introduce yourself

Once the project has been selected, you will need to fill in your contact details, provide proof of identity, proof of address and a bank account number (to receive refunds). As required by law, you will also be asked to complete a questionnaire about your experience, capabilities and investment objectives. In particular, you will be asked questions about your assets, to find out if you have the capacity to invest, but this is simply a declaration: you do not have to provide any proof. The number of points obtained by answering the questions will then assign you to one of the following categories:

  • Category A: No specific constraints;
  • Category B: Possible investment of up to 5000 euros per year;
  • Category C: Possible investment of up to 500 euros per year.

Depending on this, you can actually invest, or not.

Once all these steps are completed, all you have to do is wait for your money to grow. Each year, you will receive the coupon, which corresponds to the return of your bond and, at the end of the operation, you recover your capital. Your interest and capital, after the deduction of the Flat Tax, are on your account on the platform, which takes care of the tax returns for you. You can make a transfer to your bank account... or decide to reinvest.

Subscribe to our newsletter

To be informed of all operations currently being financed on Raizers, please fill in the following information:

" * " indicates required fields