What is Property Crowdfunding?

1. What is crowdfunding to buy a house?

In fact, simply put, crowdfunding is a kind of public-facing financing activities, most of which are carried out on crowdfunding platforms, if you have some good projects or ideas but cannot complete them due to limited personal financial strength, you can publish the project on the crowdfunding platform to fundraise, and after the success of the project, the corresponding returns will be issued to the funders.

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Crowdfunding to buy a house is actually to buy real estate by crowdfunding, the developer initiates the project on the crowdfunding platform for financing, and then the raised funds are used for development, house purchase, decoration and other behaviors, and after making a profit, the profits are returned to the crowdfunder in accordance with the agreed proportion.

1. Is crowdfunding reliable to buy a house?

Developers launch crowdfunding is only a small part of the **, not large-scale crowdfunding, and more of a market behavior. It's only a small amount of crowdfunding, and it's more like an eye-catching gimmick. This kind of crowdfunding method has the same effect as some real estate projects launching a ** house at a discount of 5% or even lower, and then bidding, all in order to attract more people to pay attention to their projects.

And crowdfunding is carried out by online platforms, but buying a house cannot only be through the Internet, which limits crowdfunding to buy a house is only a case, and it cannot be the mainstream.

3. Is crowdfunding to buy a house an "illegal fundraising"?

Many people classify crowdfunding to buy a house as an illegal funding, but most developers do not directly obtain crowdfunding funds in this process, but return this part of the money to some participants as a down payment or housing payment in ** or other ways.

The so-called illegal fundraising refers to the promise to repay the principal and interest to the investor within a certain period of time without the approval of the relevant departments in accordance with the law. In addition to the form of monetary repayment, there are also in-kind forms and other forms of raising funds from unspecified targets in society.

However, although crowdfunding to buy a house is not illegal fundraising, due to the lack of supervision, the success or failure of a crowdfunding house purchase project almost depends on the credit and morality of the promoter.

A house is 1 million, I have 20,000, you have 100,000, and then find a few poor brothers and sisters, we will make up enough for this 1 million to take the house, and after three years, it will appreciate and then sell it, and everyone will share it according to the proportion of capital contribution.

Meaning of crowdfunding: Crowdfunding or crowdfunding, refers to the act of soliciting funds from the crowd to support the individuals or organizations that initiate it. Modern crowdfunding refers to the publication of fundraising projects and raising funds through the Internet.

Compared with traditional financing methods, crowdfunding is more open, and whether or not you can obtain funds is no longer based on the commercial value of the project as a reference standard. As long as it is a project that netizens like, they can get the first fund for the start of the project through crowdfunding, which provides unlimited possibilities for more people who operate or create with a small capital.

Composition of crowdfunding:

Initiators: people who have the ability to create but lack funds, or people who need to produce products quickly;

Supporters: People who are interested in the fundraiser's story and returns, and who have the ability to support them;

Platform: An Internet terminal that connects the sponsor and the supporter.

Features of crowdfunding:

1. Low threshold.

Regardless of identity, status, occupation, age, gender, as long as you have ideas and creative ability, you can start a crowdfunding project.

2. Diversity.

The direction of crowdfunding is diverse, and the project categories on crowdfunding include design, technology, film, food, comics, publishing, games, photography, etc.

3. Rely on the power of the public.

Proponents are often ordinary grassroots people, not corporations, corporations, or venture capitalists.

4. Focus on creativity.

The initiator must first display his creativity (design drawings, finished products, planning, etc.) to the extent that it can be displayed before it can pass the review of the platform, not just a concept or an idea, but must be operable.

Crowdfunding, or crowdfunding, is a term for crowdfunding, which is translated as "crowdfunding" in Hong Kong, China, and "crowdfunding" in Taiwan. It is composed of initiators, co-investors, and service platforms. With the characteristics of low threshold, diversification, relying on the level of the masses, and attaching importance to innovation, crowdfunding refers to a way of raising funds from the masses to carry out fund-raising operations.

1. Low threshold: regardless of identity, social status, position, age, gender, as long as there is an idea and a creative level, you can carry out the project;

2. Diversification: The direction of crowdfunding is diversified, and the project categories on China's crowdfunding platform include production, technology, film, product, comics, publishing and distribution, games, shooting, etc.;

3. With the help of the level of the masses: the supporters are generally ordinary grassroots people, not companies, enterprises or professional investors;

4. Pay attention to innovation: the initiator must first achieve a presentable level of its own innovation (design drawings, finished products, program planning, etc.) before it can pass the approval of the service platform, not just a definition or an idea, and it must be executable.