Estate Baron – Real Estate Development Crowdfunding

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.