Crowd funding, a method in which funds are raised to finance a particular project, offers a number of advantages that can be valuable to investors. The method, which has been used to build projects such as the University of Botswana with people reported to have donated cows to, provides an opportunity for the investors to get equity in the form of crowd funding to properties and locations they would otherwise not have access to.
Eric van Eeten, co-founder and Chief Financial Officer (CFO) of Realty Africa, a property crowd funding platform providing investors with investment opportunities, says Realty Africa will through its crowd funding platform offer clients opportunities to have access to new funding source outside the traditional banking system which mostly is difficult to reach.
Eeten was speaking just few days before the property index conference and Expo billed for the 17th and 18th November 2015 whose agenda will address issues of identifying new solutions to funding property investment opportunities. Realty Africa brings a new way of seeking capital for different categories of investment. It is reported that properties development still has a tremendous amount of upward growth in the region and this presents opportunities for investments with good returns.
Eeten said Africa consists of young population compared to the more advanced economies where the average age is rising and the young average age in the Sub Saharan Africa will boost the development of the region. Realty Africa aims to facilitate the process between the investor and the developer in several ways such as facilitating the money flows between the investor and the developer, managing contracts between investors and developers with strict security measures to protect the investor as much as possible.
Only feasible projects are put up on crowd funding platforms based on their viability, sound and capable people behind it. Realty Africa intends to optimise the use of internet as a means to pull investors and has designed its business model in such a way that it will support the use of internet for supporting investments in the region. This model is seen as an alternative that offers greater investment returns.