Some common funding models

This is a complex area and we will not attempt to go into detailed explanation of what each term means. This summary is just to give you a broad idea when you hear these terms used. If you intend to become an investor you must do your own research to ensure your investment is wise and safe.

A brief overview

State Description
Property syndicates Commercial property syndicate A commercial property syndicate is a direct form of property investment where a property investor with limited capital has the opportunity to invest in industrial, commercial, retail, rural or residential properties with a group of other people who are looking to do the same.
Land syndicates Small and large investors who participate in the ownership and development of land earmarked for residential development. When development is completed, the syndicate is wound up and final dividends and returns of capital are made to syndicate security holders.
Joint venture syndicates A joint venture is an agreement between two or more individuals or companies where parties will work together towards the same strategic goal while maintaining their separate businesses/entities.
Property Collectives A group of individuals pool financial resources to design and build their own project, within which they each customise a property to suit their individual needs. They cut out the property developer in the process.

Property Collectives projects are similar to German Baugruppen or “self-build” projects which allow future owners to assume the role of the developer

Crowdfunding Donation-based crowdfunding a contributor makes a payment (or ‘donation’) to the project or venture, without receiving anything in return.
Reward-based crowdfunding the promoter provides a reward (goods, services or rights) to contributors in return for their payment
Equity crowdfunding the contributor makes a payment in return fora share (or equity interest) in the company undertaking the project or venture
Crowdlending debt-based crowdfunding the contributor lends money to the promoter (or pool of promoters) who, in return, agrees to pay interest and repay principal on the loan

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