Exploring Crowdlending in Real Estate:

1st April 2024
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A Comparative Analysis for Buyers

Investing in real estate has long been synonymous with building wealth, but the notion that it's solely for the affluent is changing. While traditional methods still dominate, innovative avenues like crowdlending offer lucrative returns without the need for property ownership, revolutionizing real estate investment.

Imagine contributing to the funding of a residential development. That's precisely what Civislend facilitates – a platform connecting developers seeking project financing with investors eyeing returns, starting from just 250 euros.

Accessibility is key. Crowdlending platforms like Civislend aim to welcome both large and small investors, fostering inclusivity and opportunity.

When it comes to returns, transparency reigns supreme. Civislend's track record is a testament – financing 60 projects totaling 62 million euros, with an average return surpassing 9% on reimbursed projects and an annual average return of 10.45% last year.

But what about risk? While no investment is risk-free, Civislend meticulously vets projects, conducting comprehensive viability analyses to mitigate risks. In case of default, robust intervention methods, including mortgage and corporate guarantees, safeguard investor interests.

Why Civislend? Trust – it's built on seriousness, security, and transparency. Licensed by the National Securities Market Commission (CNMV) since 2017, Civislend obtained the coveted European license in October 2023, ensuring reliability and integrity throughout your investment journey.

Now, let's weigh the pros and cons of crowdlending compared to traditional methods:

1. Lower Barrier to Entry: Crowdlending platforms offer lower minimum investments, democratizing real estate for a broader audience.

2. Diversification: Spread investments across multiple projects, reducing risk.

3. Predictable Returns: Know projected returns upfront, providing clarity.

4. Passive Income: Earn without the hassle of property management.

5. Potential for Higher Returns: Competitive returns may outperform traditional investments.

Cons:

1. Lack of Control: Limited influence on project management.

2. Market Volatility: Subject to real estate market fluctuations.

3. Risk of Default: Inherent risk, though mitigated by platform interventions.

4. Illiquidity: Limited liquidity compared to publicly traded options.

5. Limited upside Potential: Forego potential long-term capital appreciation.

In conclusion, crowdlending offers a compelling alternative in real estate investment, providing accessibility, diversification, and predictable returns. Yet, buyers must weigh the trade-offs – limited control, market risks, and potential illiquidity. Whether traditional or innovative, informed decision-making is paramount in navigating the dynamic real estate landscape.


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