You know the crowdfunding. Crowdfunding is a way to raise money by companies directly to individuals. You should know the crowdfunding success is mainly due to the fact that either the association of the large number of individuals who invest small sums that allow the financing of major projects.
The crowdlending is a category of crowdfunding is to lend money for a fee. The compensation is in the form of interest, the crowdlending is a loan. Also called the crowdfunding crowdlending simply because it's the crowd and not the banks who will finance the project.
If businesses finance themselves with individuals, it is simply because it is more difficult to get a bank loan. Banks are more cautious and crowdfunding is seen as a solution that allows both to find funding for businesses, but also be able to invest and obtain interesting returns for individuals. So it is a win-win system. Mustn't forget that in real estate projects must be between 18 and 24 months to complete a project and during this time the promoter to these locked-in funds and cannot be used to fund something else whether a project or investment.
. Before such individuals had only two alternatives, invest in a booklet and have a very low performance with very low risk or invest in the stock market, but have a relatively high risk. Crowdfunding is a little mixture of both worlds, less risky than the stock market, but more risky that the booklet was. less profitable than the stock market also, but much more profitable that the booklet was.
What is Immocratie?
Immocratie is a platform that brings solutions by linking of real estate developers who need funds and individuals wishing to invest their money.
Just as banks are asking individuals a personal contribution to grant them a loan, they ask developers a fresh capital to finance their real estate transactions. These operations, financed largely on credit, benefit in the end of the famous leverage. Namely that once sold and the loan repaid, the clear margin allows them, not only to get their departure but often double.
We knew the crowdfunding for industries such as music, new technologies, or even restore, but now this system of crowdfunding is a place in the real estate sector.
After artists, start-ups or even associations, is real estate which launches in crowdfunding with the Immocratie site.
Crowdfunding is so becoming a major player in financing companies in real estate, or even for associations. It's a real revolution in the field of financing.
Real estate crowdfunding is to raise funds from individuals and then pass money to a developer who will carry out a real estate program and sell it. It can be for example a building or a residence with detached houses.
At immocratie, the company raises funds directly to investors, without intermediate holding by issuing bonds and invests the amount sought by the proponent in its operation. This Assembly allows to limit the liability of investors to their contributions. This is a very important point because often in real estate, the problem is that the owner becomes liable for the debts of unlimited. Unlike corporations partnership, civil companies or partnerships investors are therefore not liable for the debts of the company. The most they will lose so investments but never more. But thanks to this Assembly this problem simply does not exist.
Reminder of what is a bond: a bond is like a loan everything is known in advance, as the rate at which it is repaid the principal repaid. Therefore, there is no risk of fluctuation in the value of money that has been invested as at immocratie bonds are redeemed in the same amount as the amount of purchase. Simple and effective platform is meant to be as accessible as possible so useless to have done graduate studies to understand the product. For example if one lent €3000 then the principal will be fine of €3000, these 3000 are reimbursed at the end of the project and in the meantime you tap your interests.
Growth of real estate crowdfunding was supported in France by 2015 since funds have been multiplied by 10 compared to 2014.
Most of crowdfunding real estate investments are over a period of 24 months with rates of return between 10 and 15%. Sometimes more. It is therefore a pure investment product.
"We have more and more difficult to find funding. Crowdfunding is an innovative way to deal with"François Payelle, President of the Federation of real estate developers.
Immocratie is a real estate crowdfunding platform which offers individuals to participate in the financing of real estate developers builders or remodelers.
"Immocratie propose individuals to participate in the financing of real estate transactions carefully selected with the key, prospects of profitability to which they are unaccustomed," announcing the founders.
This specialization in real estate, as well as its independence (Immocratie is linked to a promoter, or an estate agency) allow him to study a wide variety of operations: Classic promotion to operations of renovation operation, through subdivision operations.
Immocratie, crowdfunding platform which offers to individuals to finance real estate transactions with a strong financial compensation is based in Paris and founded by a team with strong skills in intermediation and real estate, for example means raise 187.000 euros (with an entry to 3,000 euros) to fund the renovation and transformation of a villa in Orange.
For his first try, Immocratie has acquired the villa in joint ownership with the promoter. After work, the goal was to sell it to the cutting, which is transformed into two apartments. A compromise of sale having already been signed at the time of crowdfunding, investors were certain to benefit from a return on investment quickly.
For this operation, the platform announced a return of 3% on two months (i.e. 18% over 12 months) to individuals willing to commit financially in the project.
"For the start of our activity, we wanted to offer investors an operation with an attractive risk/return ratio and especially a downtime of funds very short," explained at Immocratie. And the bet is more successful than, the project brought together around twenty individual investors who paid on average €9.350.
Immocratie, real estate crowdfunding platform, occurs at 2 levels:
- She selects real estate operations after have spent them sifting through 30 checkpoints and negotiates with developers financing (debt or capital) as well as compensation to serve individuals in view of the risk of their operations.
- She offers private investment by providing transparent information on operations.
The entrance ticket is located at 1,000 euros minimum and expected returns are generally superior to 10% per year, net of fees. Immocratie takes between 3 and 5% fee of Council at the time of the subscription for investors. These are the only costs for investors. Also, there is no charge for borrowers.
Why choose Immocratie?
As an investor
By organizing the collection of funds from individual investors, Immocratie responds to this pressing need for capital. Interest is clear: most important financial flexibility which allows to complete operations of larger or more operations simultaneously. This solves the problem of companies that have too strong growth because who says strong growth of very strong immediate cash needs.
Individuals need a return on their investment because with yields of the livret A it takes almost 90 years to double the sum as saying that no one becomes rich by investing on a booklet has. As for real estate developers they can go offer yields of 15% to 20% annual but can't find financing. These operations are construction or purchase and resale of buildings (not buying apartments for rental income) are a good opportunity for individuals to place their savings.
On the platform the bonds have a duration of six to 24 months is rather short so your money unlocking long within just two years. It is quite normal that there is no investment to 60 months because simply companies end a project within two years in general they have so more money beyond this period which explains why bonds have a short shelf life also serve so well to finance the corporate cash.
In return so there is no possible deductions and interest are taxed conventionally as the interests of the banking booklets. That is the income tax and social security contributions.
You should know that the team has strong skills in intermediation and real estate. Immocratie, this new platform of crowdfunding in real estate and a real market place which collects and gathers savings investors to guide it into operations, rigorously selected, real estate, residential, commercial or office
Real estate has always been, and will probably always be the preferred investment of the French. He has the distinction of being concrete unlike stocks whose value seems more uncertain in the eyes of french households.
The great advantage bonds compared to the monthly repayment of the principal plus interest is that your money is placed more long and so it is unnecessary to return every month on the platforms to be able to put his money and duty unfortunately placed on less interesting projects.
You should also know that bonds are still redeemed little matter the value of the property so if ever the market fluctuates downward so that the value of the property drops a lot has no real influence on what we will refund you only one account the solvency of the company.
Another significant advantage is the possibility to choose yourself where your money is going. In practice it is much more comforting to know exactly in which company and in which project his money has been placed rather than to see his money in a Bank and don't really know where it is.
Because of platforms of crowdfunding, or rather of crowdlending it is possible to place their savings without being a millionaire. Indeed it is quite possible to start from a few thousand euros which is much more affordable than buying a building or apartment knowing that it will increasingly take a credit. Indeed taking a credit you have certainly leverage which increases performance but it takes consideration be solvent enough to get credit while in crowdfunding it is not necessary to use the lever of the credit it is possible but not required so this investment is accessible to the greatest number.
Last the advantage of bonds is diversification indeed there is no need to have a substantial sum to invest, so with a few thousand euros it is possible to have a very diversified portfolio. Thus loss did not lose all your assets and liabilities but only the amount invested in the project, the risk is therefore limited to lose all of its investment. The risk is so under control through the financing of the company.
The project selection procedure
The selection of projects by Immocratie procedure consists of two basic steps:
- The pre-selection
- In-depth analysis
For the pre-selection, projects must comply with certain requirements to be accepted.
- Projects must have a link with the sector of real estate, construction, habitat or landscaping
- Projects must be of a professional nature
- Projects are brought by incorporated companies (K-bis) for several years and that can boast a history of significant achievements
- Projects must be purged of all administrative risks (building permits, prior declaration,…)
- Projects must be financed by own funds by the holders of the project to the tune of 20% minimum. No project where the carrier is not at risk is retained;
- The projects must have realistic development opportunities in terms of turnover and of forecast margin
- Real estate projects must meet tertiary or residential real estate (offices, logistics, trade,…), construction, renovation promotion or subdivision development operations. Only projects in France are being held.
This step is based on an analysis of administrative, financial and technical documents. Different elements are collected and forwarded to a Committee of professional real estate and project finance.
The location, the local market
- The project (construction, renovation, rehabilitation)
- The business plan, the timing of the operation
- Financing (Bank, other investors)
- Your previous transaction history
The Committee deliberates and notes the projects according to an internal grid including the location, the financial structure of the transaction, its adequacy in its environment, the strategy and the realism of marketing, as well as the experience of the operator. If the score is higher than 10/20, the opinion is favourable and the project accepted. If it is lower, the project is rejected.
What risks does this type of investment?
There are many projects in the stone. They offer no guarantees, but strong prospects of return.
Crowdfunding in real estate is a recent but growing practice. The purpose of this mode of funding is to allow individuals to take share in construction projects, renovations, rental or even life. With crowdfunding, project leaders are freed of the classic circuit and eliminate the intermediaries to find funding directly to individuals.
Returns dangle estate crowdfunding platforms are based or must be wary?
For Immocratie, these high returns are only the result of the financial package and the level of risk of the real estate transaction. There is nothing wonder in real estate returns are important because the market is normally almost inaccessible it takes a lot of money to be able to purchase real estate so it is difficult to properly diversify its portfolio of real estate except to be very rich. With crowdfunding finally it pools the money needed for the project.
Investment with companies however present a risk of loss of the entire invested capital and a risk of lack of liquidity of the investment. There is no such thing as zero risk.
Risk of capital loss
The prospects for return on investment in the capital of unlisted companies are the counterpart of a high risk of partial or total loss of the invested amounts. Before you invest, the user must ensure that he has sufficient financial resources to bear the risk of capital loss. Only of the amounts which the user has no need to be invested.
real estate risk
A real estate transaction is never without risk. It is the risk of delay in construction, risk of failure of a subcontractor, too high prices leading to a difficult marketing, use of a third party.
Lack of liquidity risk
The liquidity of the investment in unlisted companies is not guaranteed due to the absence of regulated or organised market. The user must ensure that it can withstand the immobilization of the amounts invested over a long-term horizon, without predictable time limits.
In conclusion, there is nothing new under the Sun. Real estate developers regularly appeal to private funds to finance their operations by offering this level of profitability.
Only real estate crowdfunding, by significantly reducing the entry ticket, now allows small investors to be part. But if it became possible to play in the big leagues, he must also accept the risk. Because a real estate transaction is anything but a bed of roses…
For the developer
Developers, builders, commercial property… If you think you have an operation that is a good immocratie investment opportunity is still open. Whether the construction, rehabilitation, development, asset management, real estate, residential, commercial, industrial or office. Funds can be made either to start the project, or to refinance. Immocratie is a specialist in real estate crowdfunding platform but it remains General and remains open to any opportunities.
Immocratie is an alternative to banks, and therefore a new solution to find funds and thus grow faster.
The funds are provided to the operation in the form of equity participation in the capital of the operation as well as a contribution in the current account.
Information about immocratie and its references
immocratie (SAS Socfirev) is registered under the number 15000926 in the single register of insurance intermediaries, Bank and Finance (ORIAS) as consultant in investment financial (CIF). immocratie (SAS Socfirev) is also a member of the ANACOFI (professional association).
An application for registration as a consultant in investment participatory (CIP) is currently under review with the services of the financial markets authority (AMF)