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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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