The concept of traditional crowdfunding or fundraising for a cause is well-versed among the people. But if we ask you to give your share towards investing in an asset like ‘Real Estate’, will you contribute towards such crowdfunding? Well, are you still thinking about the authenticity of this prospect? Hold on! What if in return, we offer you passive income through interest or rent on your share of contribution? Still, confused?
Let’s not keep you wondering more! We are referring to ‘Real Estate Crowdfunding Investment’! Real Estate Crowdfunding is an emerging form of passive investment in real estate. In a crowdfunding setup, multiple investors contribute towards funding a real estate project. The Online Crowdfunding Platform acts as the mediator managing the investments and protecting the interests of the investors while at the same time providing the funds to money makers i.e. real estate developers. The funds collected are invested for the exchange of passive income through fixed interest return or rental yield.
In India, crowdfunding platforms offer a hybrid model through rental yields for their crowdfunding investments. This is to boost up investors’ confidence and provide security for their money. In this article, we explore the top players offering such a hybrid of Real Estate Crowdfunding and Fractional Ownership in India.
1) ASSETMONK
Assetmonk is a leading investment platform offering real estate crowdfunding and fractional ownership avenues. Based out of Hyderabad, Assetmonk specializes in real estate properties in Hyderabad, Bengaluru, and Chennai. The company’s vision aims to give retail investors access to institutional-grade properties with customized real estate solutions. As global investors are attracted towards India’s Real Estate, Assetmonk has leveraged its Customer driven services to scale up as the market leader!
Striking Features of Assetmonk
- Minimum Investment – 10 Lakhs
- Institutional Grade Commercial Properties
- Short-Term and Long-Term Investment Options
- Expected Annual Growth Rate – 14 to 21% p.a.
- Consistent Interest Income/Rental Yield – 8 to 12% p.a.
- Risk Due Diligence and Detailed Investment Projections
- Capital Appreciation and Passive Income
- Real-Time Investment Tracking
- Interactive Dashboards
- Full-Time Investment Management Support
Along with the above benefits, Assetmonk offers complete investment assistance in 6 stages as follows:
6 Factor Investment Assistance
- Access
- Returns
- Decisions
- Tracking
- Investment
- Support
Focussing on careful asset selection with legal and regulatory compliance, Assetmonk takes immense care to protect its investors through the appointment of trustees. For a tailored real estate investment, Assetmonk is pioneering the concept!
2) STRATAPROP
Strataprop is a Commercial Real Estate Platform headquartered in Bengaluru. With a commercial project portfolio consisting of properties in Mumbai, Bengaluru, Hyderabad, and Chennai, Strataprop specializes in making commercial real estate accessible to all.
Striking Features of Strataprop
- Commercial Real Estate Properties
- Minimum Investment – 25 Lakhs
- Expected Annual Growth Rate of 12 to 14% p.a.
- Property Screening based on selected parameters
- Asset analysis and legal checks
- Financial Analysis for Investment Decisions
- Passive rental yield of 9 to 12% p.a.
- Performance Tracking
- Liquidity Sales Options
Strataprop specializes in providing tech-driven commercial real estate investment solutions to its investors.
3) PROPERTY SHARE
Property Share is a real estate platform providing quality institutional assets to ordinary investors. Combining technology and real estate, Property Share is making real estate a democratic space for everyone. Headed at Bengaluru, Property Share majorly operates in real estate spaces in Bengaluru, Hyderabad, Mumbai, and Pune.
Striking Features of Property Share
- High Initial Investment
- Online Dashboards
- Rental Distributions straight to the bank account
- No lock-in period
- Resale platform
- Due diligence and market reviews
- Rental Yields – 8 to 10% p.a.
- Annual Projected Returns – 17 to 20% p.a.
With these above features, Property Share has considerable experience in raising funds for properties. The key focus of the company is to provide:
- Access
- Liquidity
- Asset Management
4) SmartOwner
SmartOwner is a real estate crowdfunding platform operating in South Asian Regions. It is a FinTech company specializing in finding real estate opportunities and crowdfunding them to earn returns for its investors. With a highly selective approach towards listing the properties, SmartOwner ensures a complete background check for crowdfunding real estate properties.
Striking Features of SmartOwner
- 16 to 24% Average Annual Returns
- Quick Entry and Exit Options
- Easy Operations through Digital process
- Management of Investment by team
- A major presence in Bengaluru properties
- Offers portfolio management services
- Constant updates of profit
The SmartOwner is also a real estate investment management company offering investors to personalize investments according to their goals and needs.
In a Nutshell
Comparison | Assetmonk | Strataprop | Property Share | Smart Owner |
Minimum Investment | 10 Lakhs | 25 Lakhs | Price per sqft. | Not known |
Passive Returns | 8 to 12% p.a. | 9 to 12% p.a. | 8 to 10% p.a. | Not known |
Annual Average Growth | 14 to 21% p.a | 12 to 14% p.a. | 17 to 20% p.a. | 16 to 24% p.a. |
Digital Support | Yes | Yes | Yes | Yes |
Since the real estate crowdfunding space is in its nascent stage, very few platforms cater to the market. The above four are the top performers in Real Estate Crowdfunding in India. Each company has its strength in terms of customers’ needs, technology, returns, expertise, and so on. For a common investor like you and us, choosing between them is a tough task. Real estate is a complex space, understanding the parameters to choose between the platforms can be an overwhelming experience for many!
But you don’t have to worry! We got you covered! To make your real estate investment journey comfortable and easy, here is a top 5-factor checklist you must follow before choosing a Real Estate Crowdfunding platform in India!
1. Registered Company
The authenticity of any company is known from its registration with the regulators. A company in India is said to be a valid company if it is registered under the Companies Act, 2013 and administered by the Ministry of Corporate Affairs.
2. Speak to the Investment Managers
Before investing in a real estate crowdfunding platform, consult the advice of the company’s investment managers and understand their due diligence process in filtering out the real estate properties. Moreover, make sure that you pay attention to key details like lock-ins, initial investment, payout policy, and so on.
3. Do your research
For every investor, it is of due importance to evaluate the investment opportunity based on their investment goals, holding period, return expectation, liquidity, and so on. Failing to do this will result in an aimless investment with no clear objective on when to enter and when to exit causing lower profits.
4. Consider the risk
Like any investment avenue, real estate crowdfunding also possesses associated risks. They can range from payment default, lower actual returns, project delays, etc. To minimize this risk, factors like the developer’s credit background, legal compliance, and timely completion of the project should be inspected.
5. Invest in a trustworthy partner
Investing in Real Estate requires a trustworthy network. Thus, partnering with a trustworthy crowdfunding platform will be a great aid. A platform that not only provides digital convenience but also becomes a savior in handling other important queries. For this, make a smart investment in a customer-friendly platform.
This article aims to guide any potential investor in real estate to start onto a new journey in real estate crowdfunding. Analyzing the key parameters discussed above and acting upon them, you will be able to select the best real estate crowdfunding platform catering to your needs as well as optimizing the returns for you!
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