Real Estate Crowdfunding: investment scheme for small investors
Published 2 years ago the November 5, 2018By Monica Herrera
For years the real estate and business sector was exclusive to a small percentage of the population due to the high amounts of financial capital that the industry demands. However, currently there are real estate crowdfunding companies that represent an investment alternative.
This new form of collective funding arrived in the country in 2010, with a scheme for small investors who seek to obtain higher returns compared to those offered by traditional investment instruments , but with minimal risk and lower amounts ranging from 25 thousand pesos, figure that depends on each platform.
Such is the case of Inverspot , a real estate crowdfunding firm that began operations in 2016 focusing on the Mexico City market ; However, today it has projects in Guadalajara and the State of Mexico.
However, its greatest case of success is located in the street of Illinois in the CDMX "it was one of the best we had since we delivered a profit of 30.34% in 12 months with an investment of 250 thousand pesos" says David Agmon, director executive and founding partner of the firm, in an interview for Inmobiliare .
Since February 2016, the company has completed 18 developments in Mexican territory, which, according to the executive director, “met all expectations, we are proud of all of them since there was no loss in any of them”.
Despite having started in the country's capital, Inverspot has expanded its vision to the United States, where they founded their first development in a coworking in 2017, located in New York .
For Inverspot, the trust, security and speed that they offer to the public is very important, so the regulation that the Federal Government implemented , with the so-called Fintech Law , means an advantage in the real estate sector, since it will result in greater transparency for clients and above all an increase in their trust.
According to Agmon Mizrahi, the main guarantee for the investor is the same property in which it is being invested and second, the contract that protects participation in the development. As well as an investigation made to the developer about his experience , finished projects, documentation in order, etc.
Likewise, he points out that collective funding has more advantages than disadvantages, “in reality the only (disadvantage) is market risk, that is, the variation of percentages in the returns that can be obtained, which goes hand in hand depending on the area and the added value of the development ”, since the latter helps to increase yields , mainly due to the progress of the work.
From this point on, everything offered by the platform is aimed at the profit and needs of its investors "we offer personalized advice , the only requirements to start are: have a bank account with the amount you want to invest and your personal data" .
Once these two requirements are met, the investor can choose to enter all his capital in a single development or diversify it in all the projects that are open at that time with the same number of participations, which in the words of the executive director, is the better recommendation, in addition to supporting them to achieve a greater investment portfolio.
Inverspot grants the opportunity to invest from 50 thousand pesos in developments that are funded, on average, between one and three weeks with attractive returns , which are estimated between 18% and 20%; however, once completed, the utility may be higher than originally planned.
One of the advantages is that it does not limit its clients with respect to the investment amounts , since if it is greater than the sum of active shares, "we support them with investment proposals or we recommend that they wait for the next launch" with the aim of not lose the investment and the clients get bigger and better sources of returns.
In the words of Agmon Mizrahi, one of the best advantages that the firm offers additionally is not to make extra charges for capital withdrawal , which despite not keeping a count on these withdrawals; He mentions that there have been few, "because it is a simple and fast process, we do not have charges or penalties , but neither do they withdraw returns, let's say that they leave with their full capital that compared to other scenarios is an excellent plus".