Crowdfunding to buy acquire properties

Discussion in 'Loans & Mortgage Brokers' started by PropertyInsight, 10th Sep, 2017.

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  1. PropertyInsight

    PropertyInsight Well-Known Member

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    just wonder anyone uses Crowdfunding platform to raise money to acquire IP or CIP? i.e CrowdfundUP
     
    PropertyInsight, 10th Sep, 2017
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Someone will fund the purchase of your IP why?
     
    Scott No Mates, 10th Sep, 2017
    #2
  3. Archaon

    Archaon Well-Known Member

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    Not sure why people would give someone else money to invest in property, unless you are somehow offering them a return on that money.

    And especially considering the sentiment towards property investors in the media and abroad, i doubt it would be looked on favourably at all.
     
    Archaon, 10th Sep, 2017
    #3
  4. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    May as well crowd fund a new car and holiday while your at it
     
    Johnny Cashflow, 13th Sep, 2017
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  5. TMNT

    TMNT Well-Known Member

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    I personally dont understand the practicality of crowdfunding for a business venutre,
    different if its a sad story of someone getting sick or losing a family member

    if you cant afford it, you cant afford it,
    I know businesses offer discounts/freebies/rebates if its busines venutre, but for a property purchase? i have no idea

    however the world has gone mad sometimes
     
    TMNT, 14th Sep, 2017
    #5
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The Crowdfund UP link is for commercial deals and I would imagine behind it you will find a private unit trust hold each property. Thats the big end of town. Lender of last resort funding land too. Sophisticated investor deals too.... Take care you could get chewed up and spat out the other side. Years ago I cautioned two SMSF clients about similar deals. They were unsecured and guaranteed ...experienced etc they said.....Sure..... Neither have recovered their funds...Or seem like it. Yet it was property. 100% safe they said.

    Unlisted trusts etc can be as good as a promise to repay. And a IOU on a scrap of paper is useless as a security. What the difference ?
     
    Paul@PAS, 14th Sep, 2017
    #6