How does Crowdprop Work?
Real estate crowdfunding is a modern and unique investment solution with the potential to transform the property market as we know it.
Crowdprop (RF) Ltd is South Africa’s first ever fully regulated property crowdfunding platform. We are managed by ELA Asset Management, an authorised financial services provider (FSP 49010). Our platform provides investors with access to a range of lucrative property investments across South Africa and offshore.
Previously, property investments were available only to individuals of a high net worth, as these types of investments required large amounts of capital. Crowdprop was founded with the aim of making property accessible to everyone through the use of crowdfunding.
Democratising investments
By leveraging crowdfunding and fractional ownership, we allow investors to select which property they want to invest in and enable them to partake in owning a portion of a property from as little as R10 000. The platform also serves the property owner who is seeking to raise capital on their property or development, in exchange for equity in that property.
Crowdprop enables you to invest in the real estate sector in an affordable way that doesn’t require large amounts of capital and doesn’t involve any debt. You can confidently gain access and invest in pre-screened and fully vetted real estate investment opportunities. Our strong relationships with leading real estate developers provide us with access to a range of prime investment opportunities. This means that investors can, for the first time, partake in property investments with a low capital output. It is a great way to earn a passive source of income and realise financial goals.
A step-by-step guide to how Crowdprop works:
1. Source the Property – Crowdprop Sources the property. We invest in Residential, Commercial, and Industrial properties, as well as Property Developments and Offshore Properties.
2 Conduct Due Diligence – We conduct a thorough due diligence on the property to determine its viability as an investment. Crowdprop utilises independent experts to assess each property through a strict screening process. This process ensures that only safe and qualified investments are listed on the platform.
3. Market the Property – The property is marketed to prospective investors via our platform and marketing channels to raise awareness and create interest in the property.
4. Register your Crowdprop Profile – The investor registers a profile on Crowdprop and verifies their identity. Once completed, they will gain access to all available property investments.
5. Select a Property and pledge your funds– Investors can view all our available property investments and is given the tools required to make an informed investment decision. Each investor will receive an investment prospectus which is a legal disclosure document that provides information about an investment offering to the public. The prospectus will outline all the details relating to the sale and investment and is solely for informational purposes. The investor will then navigate to the Crowdprop wallet on the dashboard and add their desired investment amount to their Crowdprop wallet by way of an EFT.
6. Fundraising Phase – The property is divided into various shares, so investors are able to invest in, and own a portion of the property from as little as R10000. A total funding target is required to complete the purchase of the property. Should this target not be met, investors are refunded in full.
7. Property Purchased – Investors pay Crowdprop a certain amount in exchange for shares. We purchase the property with that money through an individual company known as a Special Purpose Vehicle (SPV). This ensures that each property is independent and ring-fenced from one another for security and tax purposes. We also provide investors with estimates of the expected returns of a property upfront before they can invest. These estimates are based on past and relative performance and are not an accurate indication of future performance or guaranteed in any way.
8. Property is Monetized – The investor will own the property collectively with other investors. Each investor is given shares according to their percentage of ownership and rental income is paid into their Crowdprop wallet. This will be paid out monthly, quarterly, or annually, depending on the investment. This amount can be withdrawn or reinvested at any time. In addition, Crowdprop will manage all aspects of the property on behalf of the investors, providing them with much-needed peace of mind.
9. Investors awarded a share certificate – Each investor will be issued with a registered share certificate, proving they own shares in a specific property. The share certificate is a digital certificate that will be sent to the investor once the subscription agreement has been completed. Each property investment will have a different share certificate as all properties are independent and ring fenced from one another.
10. Exit & Sell – Once the investment term has come to an end, all investors will vote on whether they are interested in selling or maintaining ownership in the investment. If the property is sold, the investor will receive their portion of the proceeds from the sale. We will ensure the property is sold at the best available price in the least amount of time required.
We understand that not everyone is familiar with property investing. Crowdprop makes it easy for you by doing all the homework and ensuring the property is managed in the most efficient way possible. Giving investors peace of mind knowing that their money is working hard for them. “You invest, and we do the rest!”
Get started today and build your very own property investment portfolio. For more information, contact one of our consultants on Whatsapp 073 029 6139, or email us on info@crowdprop.co.za
