Ed: I believe this an underserved market, development finance is really tough to get, but there is a reason for that.
Property development is a highly risky game with massive rewards once you get it right but so many things can go wrong during the process.
Development Application delays from the council, legal action from neighbours, building delays due to weather and every day you lose comes off the bottom line.
Its a tough market and it has a high failure rate but this problem is real, the banks do a crappy job, my biggest concern is that developers are probably a lot sharper and have a highly honed sense of survival, far more than startups.
The toughest thing is for the investor to ensure they get their share of the profits and the investment vehicle has some methods to enforce this, its not a game for young players.
I note that each project is ASIC regulated which is a step in the right direction.
|Startup Name||Estate Baron|
|What problem are you solving?||We are giving everyone the chance to be able to invest in expensive Melbourne real estate, while providing project developers with the financing they need.|
|What is your solution?||We provide users with a list of development projects and allow them to invest as little as $2000 for a share of the property, using the model of crowdfunding.|
|Target Market||Our target market are primarily Men between 25-54 years of age.|
|How will you make money?||We take a percentage of the returns on each investment.|
|Tell us about the market & founders, why is this a great opportunity?||Real Estate Crowdfunding has grown to become very popular and successful in the American, European and British market and Australia has just started to catch on. We are one of 3 companies in Australia who provide this service. Crowdfunding is a new and popular way to bring people together to fund a communal project instead of depending on Banks for financial backing all the time.|
|Founders Names||Moresh Kokane, Mark Winslade and Luke Hindson|
|What type of funding has the company received?||Private Equity|