Nowadays there is pouring rain of new modern concepts over us, that in some occasions, even being of our interest, we dismiss them because we do not know what they really are. Because of that, firstly we would like to make it clear what these two concepts really mean: Crowdfunding means collective financing, and Crowdlending is lending between people. And now, we are ready for entering in a more detailed way about their characteristics and benefits.
Both concepts have emerged under the umbrella of the internet, through specialized platforms that are in charge of fostering this type of collaborative projects, facilitating the creation of synergies between small and medium investors that are looking for alternative ways of capitalizing their savings; and promoters of projects that look for financing in alternative markets of the traditional banking.
Although it is better not to lie ourselves, because if we analyse who are behind of these platforms, we normally find that directly or indirectly, they are capitalized by one of the big real estate groups, finding on this new system a way of diversification. Even though the users do not care, as far as they can accomplish their goals with a minimum guarantee, as we will see later on, this kind of operations are not exempt of risk.
Crowdfunding or collective finance is a new format of investment, which gathers small investors for covering the costs of a project. In a concrete case of real estate crowdfunding, these small and medium size investors, join the project through specialized platforms, for investing on construction projects without the need of investing too much money.
Obtaining also higher yields than in a traditional housing investment. In the canvas bellow, you can see a comparative table of 6,000 € investment in the long term (15 years). It can be seen clearly how the profitability with this new model of investment would had been pretty superior than the one you can get through traditional financial products (funds, bonds, stock shares, etc).
In the Crowdlending platforms, they offer some projects in which you can invest, through the participation on loans for financing them. The main service that they offer -as well as the intermediation between investors and promoters-, is the financial analysis of these projects. In this way, we can compare between different types, regarding to many factors (profitability, time, type of risk, etc); you can choose the one that fits best to our investor profile. Following, you will see an example about the study of a construction project for investing.
As a matter of fact, as we have seen along the article, both Crowdfunding and Crowdlending are financing alternative systems, that offer opportunities either to investors and companies for undertaking different projects. Thanks to the easiness that generates everything through the internet or in the digital channel, it reduces time and management costs. But, as in all businesses, if we do not want to take risks, it is always recommendable to ask for support of a real estate expert, that helps us to analyse the operation, and gives us information about which assets are more advisable and fits best to our profile and expectations. Because the destiny of our funds, is always an investment on real estate assets and so, the profitability to obtain will depend on the quality of them.