Currently, there are new forms of investment beyond the classic and traditional ones. One of the newest in the real estate sector is called crowfunding. If you want to know what is he through crowdfunding real-estate, in this article we will tell you.

What is the through crowdfunding real estate?

It is a form of investment in which, instead of making a large outlay on the purchase of real estate, small amounts are invested by participating in the purchase of a property jointly with other investors. It is possible to invest in crowfunding analyzing different projects for the sale or reform of real estate through specialized platforms.

What is its operation?

El real estate crowdfunding operation It is done through specialized companies that are in charge of all the necessary analyzes and procedures that these investments entail. Its operation consists of the purchase of real estate to be reformed. With this, they are revalued and, later, they are sold. Thus, the participants recover their investment and obtain profits.

In exchange for carrying out these procedures, the specialized companies take a percentage of the profits of the investors. You should know that these organizations are regulated by Law 5/2015 on Business Financing, which imposes limits on non-accredited investors. In this way, they will not be able to participate for amounts greater than 3000 euros for each project, nor more than 10 euros per year. On the other hand, accredited investors have the possibility of intervening without limit of investment in through crowdfunding real estate in 2022.

Its main advantages

• You can participate with a low investment.
• There are many projects to choose from, which helps to diversify and minimize risks.
• The period to recover the investment is shorter.
• Specialized companies are regulated by the National Securities Market Community.

Therefore, if you are interested in knowing more in depth what is real estate crowdfunding, visit our website and find out.