Real Estate Crowdfunding?

Investing and Markets 📈 Alternative Investments 👽
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What are everyone’s thoughts on real estate crowdfunding? Seems like a good option for income and some capital appreciation.

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I invest on reinvest24 only in one project so far, I usually only do collateral debt. They way they do it is you buy shares in the project a share is usually €1.

Any good UK firms that do equity with the intent to sell in a few years?

Your article is for the American market nearly all those are US specific and some of them are even only for accredited investors

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I would love to invest in property this way, the main benefit that I could build a diversified property portfolio which would in turn diversify my wider portfolio, which is predominantly stocks/ETFs and some Bonds.

My criteria for a property crowdfunding platform, in rough order of importance, are:

  • An equity product as opposed to loan (for, hopefully, higher growth)
  • Tax efficiency (ISA, SIPP, etc) - this feature is especially rare
  • Relatively low fees
  • Low platform risk (i.e. well funded/profitable platform)
  • Direct property exposure

No platform has met these criteria for me as yet:

Bricklane is VC backed, with modest fees and tax efficient vehicles. However, the product is essentially a listed REIT, so it could be especially prone to stock market swings, (high beta) making it a useless diversification tool - which is, for me, a key reason for investing in property.

PropertyPartner are probably the market leaders, with the largest portfolio/AUM. They now have infamously high fees, especially for smaller portfolios. They also don’t have a tax efficient vehicle for their property equity products. On the flip side, this new business model has put them on course for profitability, so you can count on them hopefully not to go bust anytime soon.

Most other platforms, whilst promising, are simply too young, posing a significant platform risk, something I’m admittely over-averse to. FCA rules protect your interests somewhat in the case of a platform wind down, but it is simply not a situation I would like to risk if I can help it in any way.

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Thanks for the Bricklane input @anon1435622 I will do some research into them this evening. Do you know anything about Brickowner?

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