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View Full Version : I'm trying to get a few thousand people to crowdfund a rental property - advice?



mathewferguson
03-03-2013, 08:08 PM
G'day everyone,

I've just started Crowd Funded Property http://www.crowdfundedproperty.com to see if a few thousand people can buy a rental property around the $100,000 mark and then have the income distributed back to them.

It's only been a few days and I already have two backers (woot $40!).

Basically I want to give people with $20 access to investing in a rental property and getting money back for their investment. I think there are a lot of investors at this level. I'm also trying to solve my own problem: when I have $20 there's not much I can do with it.

I'm looking for advice on how to kick this into gear and really get it going. Is the site specific enough? Does it answer questions you might have? Would you fund it? Why/why not?

And the big question: what do you need to see to throw $20 into it?

cheers,
Mat

**Apologies if this is the wrong forum for this.

ReportCrowd
03-03-2013, 10:28 PM
Interesting idea, I think you need to go into more detail, specifics. 100k is a lot to ask for an idea with no clear guidelines or goals other than buy a house and rent it out. For instance, $20 does not get you much in terms of rental income from it, so you would be relying on the value of the house appreciating. How and when is it sold, maintenance costs, and so on. more detail will definitely help. -Chris @RC

mathewferguson
03-04-2013, 12:06 AM
Interesting idea, I think you need to go into more detail, specifics. 100k is a lot to ask for an idea with no clear guidelines or goals other than buy a house and rent it out. For instance, $20 does not get you much in terms of rental income from it, so you would be relying on the value of the house appreciating. How and when is it sold, maintenance costs, and so on. more detail will definitely help. -Chris @RC

Thanks for your response.

So, for example would you want to see something this like:

House price $111,111
Per week rent: $165
Per year rent: $8580
25% deducted for repairs/real estate agent management: $2145 per year
Shares available: 111,111

Estimated returns:
10 shares $0.05 per month ($0.56 per year)
20 shares $0.09 per month ($1.13 per year)
ROI 5.64%

The idea is to give people who don't have $10,000 access to direct investment in a rental property. So it's not so much about the capital gains or selling the property within two years. It's about buy and hold and earn investment income. I'm also trying to give someone with $20 a 5% ROI.

ReportCrowd
03-04-2013, 12:19 AM
Yes exactly, just more information. That breakdown is a good example of what needs to be on the page. The more info the better. Say that the main goal is to get 5% ROI and not buy and sell, but also go into what would happen if the house is sold. -Chris @RC