AH HospitalityParticipant@patocaballoJoin Date: 2015Post Count: 5
What do you think of crowdfunding for a cashflow business instead of just an apartment? Many people is buying little shares at https://www.brickx.com and leaving the control to other people and the market. I saw a crowdfunding platform in the USA where they are buying hotels, cashflow business and sharing the returns with the people who invested, they also buy the asset not just the business.
As you are all here property investors. In your opinion, do you think this will work in Australia? Would you invest a little bit of money on crowdfunding a boutique hotel or boutique service apartment like for example http://www.adgehotel.com.au ( not saying that this hotel has been crowdfunded) but more like this model and/or size.
Any feedback good or bad will be appreciated.Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
The main problem with crowdfunding is that in many cases there is little security attached to the loans. If you are thinking of entering into such an agreement I suggest you seek legal advice to make sure your interests are protected.
One way to do this is yes put a group together to purchase but make sure that you are part of the ownership group. In other words if a company or a trust owns the asset make sure that you have a percentage ownership so that you have direct ownership in the asset.
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