Review the opportunity
Read the project presentation, investment terms, key risks, financing purpose and supporting documentation.
Investor education
A practical guide to real estate crowdfunding.
Learn how an investment is structured, how returns are generated, what information deserves closer attention and which risks should be understood before committing capital.
How it works
The investment journey
From reviewing a project to receiving repayments, each stage has a different purpose and set of considerations.
Commit capital
Choose an amount that fits your financial situation, investment horizon and capacity to absorb a potential loss.
Monitor progress
Follow project updates, execution milestones, payment information and any changes that may affect the original plan.
Receive repayments
Interest and principal are paid according to the agreed structure, subject to the project meeting its obligations.
Opportunity assessment
What to review before investing
No single indicator tells the whole story. A disciplined review combines information about the project, sponsor, financing and exit plan.
Project and location
Consider the development type, stage, permits, local demand, accessibility and comparable property activity.
- Development stage and remaining work
- Planning and construction permissions
- Local demand and comparable projects
Developer experience
Review relevant completed projects, execution history, financial commitment and the team responsible for delivery.
- Relevant track record
- Capital invested by the developer
- Experience of the delivery team
Financing structure
Understand how much capital is being raised, how it will be used, where your investment sits and which protections apply.
- Use of proceeds
- Loan-to-value and capital structure
- Security and contractual protections
Repayment strategy
Identify the expected repayment source and assess what could happen if sales, refinancing or delivery are delayed.
- Primary repayment source
- Expected timeline
- Alternative exit scenarios
Risk and return
Understanding potential returns
An advertised return is not guaranteed. The actual outcome depends on the project meeting its obligations and timetable.
Interest rate
The contractual rate used to calculate interest, usually presented annually.
Investment term
The expected duration of the investment. Repayment may occur later than originally planned.
Payment structure
Interest may be paid periodically, at maturity or according to another agreed schedule.
Fees and taxation
Consider applicable platform costs and your individual tax obligations when estimating a net return.
Important risks
What can go wrong
Real estate crowdfunding is not a savings product. Returns and repayment of capital are not guaranteed.
Loss of capital
You may lose part or all of the amount invested if the project cannot meet its obligations.
Limited liquidity
You may not be able to sell or withdraw from an investment before its maturity.
Delays
Construction, sales, permitting or refinancing delays can postpone interest and principal payments.
Market changes
Property values, demand, financing costs and economic conditions can change during the investment.
Portfolio discipline
Diversification can reduce concentration
Spreading capital across different projects, locations, developers and maturities may reduce exposure to a single investment, but it cannot eliminate risk.
- Avoid committing capital needed for short-term expenses.
- Consider exposure across several projects rather than one.
- Match investment duration with your own financial horizon.
- Review your total exposure to illiquid investments.
Before you invest
Investor checklist
- I understand how the project plans to generate and repay capital.
- I have reviewed the available documentation and risk disclosures.
- I can keep the invested amount committed for the full term or longer.
- I can financially tolerate a delay or partial or total loss.
- The investment fits my objectives and overall portfolio.
Useful terms
Terms you will come across
Plain-language explanations for common terms used in real estate investment opportunities.
- Principal
- The original amount of capital committed to an investment.
- Yield
- The return generated by an investment, usually expressed as a percentage.
- Maturity
- The date when the investment is expected to reach the end of its agreed term.
- Loan-to-value
- The relationship between the financing amount and the estimated value of the underlying property.
- Collateral
- Assets or rights intended to provide additional protection if repayment obligations are not met.
- Default
- A failure to meet contractual obligations, such as making a payment when due.
Every investment involves risk
Educational information supports your research but does not replace independent financial, legal or tax advice.