Real estate crowd investing
Real estate crowdinvesting (also swarm financing of real estate , English real estate crowdinvesting , shortened to REC or RECI) is a separate sub-category of crowdinvesting . A specifically named existing property, a property under construction, a real estate project or a piece of land is financed. The classic crowd investing structure can also be found here. Many people (private investors and institutional investors) with typically small amounts of money and the intention to make a profit participate in a company via an online platform. In contrast to classic crowd investing, real estate crowd investing is usually not a start-up .
The investor does not participate directly in the property in Germany and Austria, so he usually does not acquire equity in the project company and is usually not entered in the land register. Usually it is a subordinate loan to a project company (a so-called Special Purpose Vehicle (SPV)), often in the legal form of a limited liability company, or partial amounts from the claim for a bank loan.
term
In German-speaking countries, the term real estate crowdinvesting has become established for financing real estate by the crowd. In principle, an intention to make a profit is assumed. If there is no intention to make a profit, the project should be assigned to crowdfunding .
In the English-speaking world, the term real estate crowdfunding (from English real estate for 'property', shortened to REC or RECF) has established itself. The term crowdinvesting here mostly does not refer to the intention to make a profit, but rather indicates equity participation. Often a distinction is made between real estate equity crowdfunding (from English equity for 'equity') and real estate debt crowdfunding (from English debt for ' liability ') or real estate crowdlending (from English lending for 'credit') as a synonym for real Estate Debt Crowdfunding.
In Germany there is only debt-based crowdinvesting because, according to the legal situation, equity cannot be acquired in a company by means of crowd investing. There is therefore no further distinction between equity-based and debt-based crowd investing.
Uniform distinctions and definitions of the various terms do not currently exist.
Benefits and Risks
In contrast to real estate investment trusts or real estate funds, real estate crowdinvesting usually only finances a real estate project or small real estate portfolio. The properties are known before the start of the project. It differs from other forms of crowd investing mainly in that the loan is secured by the asset, i.e. the property itself.
literature
- Orthwein, Ilona ,: Crowdfunding: Basics and strategies for capital seekers and donors . Hamburg, ISBN 978-3-95485-602-2
Individual evidence
- ↑ a b c d e Carsten Kotas: Real Estate Crowdfunding in Germany: An empirical study from January 1, 2012 to December 31, 2017 . In: Working papers of the FOM University of Economics & Management . No. 69. Food.
- ^ A b Jan Wunschel Anna Gaßner: Crowdfunding - Real Alternative for Real Estate Financing: Legal Model, Opportunities and Risks in the Light of the Small Investor Protection Act . In: ZfIR . tape 2015 , p. 853-870 .