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funding , but even more about marketing yourself and building a track record that radiates trust .
So it is not really the type of project that triggers crowdfunding , but the vision of the developer . Developers of property or infrastructure can benefit in various ways :
• Property crowdfunding offers an alternative funding source for property developers that have difficulty accessing traditional funding sources and don ’ t have access to an international investor network . Also , the funding source is more risk-reward based than traditional bank loans , which in our region come at high fees without any flexibility .
• Even if property developers can access bank funding easily , crowdfunding might still be attractive . It can leverage a variety of funding sources , but , more importantly , it is also a great source of marketing . It will offer a platform online to show your ability to complete great projects and create a track record .
• Crowdfunding can also be a way of getting buy-in from the surrounding community . Offering the community the chance to invest in your project makes them stakeholders , and they will behave like stakeholders . Realty Africa offers the platform to make this happen .
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HOW DOES A DEVELOPMENT GET LISTED FOR A FUNDING PROGRAMME ? WHAT PAPERWORK OR PLANS NEED TO BE SUBMITTED ?
Property developers can register on http :// bit . ly / africa _ invest , and then they will be verified by our specialists . After verification , projects can be submitted online . An application form and a modest application fee are part of the process , as well as a business plan and formal documentation .
Realty Africa will provide the application form and a “ Business Plan Guideline ” that contains an overview of the total process , a list of necessary documents and guidelines for important items that should be dealt with as part of the business plan . These documents can be downloaded on http :// bit . ly / RA _ applications after payment of the application fee . You can always send an email to developer @ realtyafrica . com if you need assistance .
WHAT HAPPENS ONCE THE DEVELOPMENT IS LISTED ?
Crowdfunding attracts real investors who deserve the same transparency and quality of investment as banks . Therefore we have developed the Realty Africa ECO System ( http :// bit . ly / eco-system ) to protect investors as much as
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possible . We apply a strict due diligence process ( http :// bit . ly / RA _ due _ diligence ), with the assistance of Deloitte , to vet the project and the suitability of investor proposals . This is also to the benefit of the developer . It means that only the best projects will make it onto the platform , increasing the interest of investors and the chances of success . We want to make sure that one bad egg doesn ’ t destroy the whole basket .
Realty Africa will have a preassessment performed by a team of country directors , after which we will propose a contract to the developer before submitting the project to Deloitte for further checks and balances . An important factor is security . Realty Africa provides investors with security in the form of a mortgage bond on the asset . This increases peace of mind and fundability . A trust structure has been set up to facilitate this .
CAN ONLY A PART OF A DEVELOPMENT BE FUNDED ? IF THE DEVELOPER WANTS TO BUILD A CLUBHOUSE ONTO AN EXISTING DEVELOPMENT , CAN THAT BE FINANCED THROUGH CROWDFUNDING ?
A lot is possible with development . Investors like refurbishments or add-ons to existing properties , as they entail less development risk and the future benefits are clearer . These types of projects offer excellent business cases and should
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