[Report] Real estate crowdfunding knows no crisis

In the midst of a fundraiser with Raizers

Raizers appeared on August 20, 2020 in a report broadcast by TF1 about participatory financing in the real estate sector. The Raizers team can be seen in its Parisian offices, working on the launch of a new financing campaign. The financing of the project put online via the platform amounts to 1.3 million euros and will be repaid to investors by the developer at a rate of 10% annually after two years. In less than 15 minutes, the set amount is reached. Raizers democratizes an investment product that was normally reserved for expert or institutional investors by making it accessible to individuals or professionals (private banks, asset management firms, etc.). The amount invested on the platform in 2020 amounts to 46 million euros with more than 50 operations financed and 1000 homes created or renovated.

Real estate crowdfunding, advantages for both investors and developers

The sector has so far not suffered from the crisis, prices have increased by 5.1% over one year, and short-term investments, which can yield 10% of the stake per year, are attracting more and more investors. These investments are attractive because they are also 10 times more profitable than traditional bank investments. The Autorité des Marchés Financiers (AMF) warns, however, against the possibility of a partial or total loss of the invested capital in case of non-solvency of the promoter. Real estate crowdfunding, like any investment, involves risks that one must be aware of.

Promoters also find advantages in this. It allows them to release funds quickly, to be able to gather an additional contribution without which they might not have been able to finance their project. Some projects have only seen the light of day thanks to the financing of part of their own funds via the crowdfunding platform, which has enabled them to unlock a loan from a bank.

In the end, each party benefits and this is why real estate crowdfunding is so popular today.