Find the right investment property for you.
Here's how to buy on Freehold Crowd
Our projects are selected and curated by our crack team of real estate developers. They know that you make money in real estate when you buy, more so than when you sell. The properties are chosen for their respective area’s long term trends, the construction/remodel/development opportunities, and the entry price point, among many factors. The plans may be simple and straightforward for a quick turnaround or complex development including demolition and new construction. In any case you can browse through our available (and some past) projects, review the plans and estimated projections including estimated investment returns, and select the ones you like to invest in.
Once you have selected a project feel free to Invest your desired amount. Note that you can invest in the equity portion of the project, for a higher return, or in the financing, which we call the “Development Loan”, for the highest security and lowest risk. Each project will clearly show minimum investment amounts, and you are welcome to invest any amount over that (up to the full available amount). As users commit their money, the Investment Progress Bars will fill up towards 100%. Typically you only have to send a small deposit to hold your investment opportunity. When that threshold is reached, and the project is fully financed, then your investment is activated and the full amount should be forwarded. At that point, the project is launched!
Enjoy watching the project’s progress. We will have regular updates as well as a live webcam feed on site! Once the project is completed, collect your earnings. Most projects are set to be sold upon completion, but others may be meant for hold and rent. This will be indicated in the project details. Throughout a project’s lifetime and holding period, we may circulate offers to investors for those who may want to exit earlier. You can always inquire about an early exit and we will do our best to accommodate you. Of course it is always best if your holding preference matches that of the projects you chose to invest in.
Of course the choice is up to you. It is important that the project’s key parameters match your preferences and investment appetite. Can you invest the minimum amount? Do you believe in the future of the region where the project is located? Do you think the overall plan makes sense, for example the demolition of an old home in a neighborhood that was once quite modest and is now upscale and booming. A luxury home there may unlock the property’s value. Do you like the plans? Always consider the project’s ultimate goals and timeline. Can you invest for the duration of the development, and would you rather hold and rent the property or sell to collect your earnings.
You don’t need to worry about anything. Our investments are turn-key. Our in-house team of expert developers, with nothing short of a stellar track record, manage every facet of our projects. You can expect development to be on time, and within budget (things rarely encountered by retail investors on their own). In our experience development comes with endless challenges, foreseen and unforeseen. We expect to be dealing with, and surmounting these on a daily basis. Through our experience and relationships with top professionals, we minimize the problems that may arize in every project. Freehold Crowd takes a management fee for this critical work. It is built into a project’s figures, and part of the initial projections that you may review before investment.
At Freehold Crowd, you can be the entrepreneur, going after the higher yield, or the bank, preferring the highest security and safety with healthy profits. You can also choose to play both sides! Most projects will have the opportunity to invest in “Equity” and/or in the “Development Loan”. The latter is the project’s financing. The percent return is set at the project’s outset, and is guaranteed by all the assets. Just like the bank, the investors here are the last to lose and the first profit. Typically property values have to crash very significantly, for the Development Loan investors to face any potential losses.
If the project refinances at any point in time, all Development Loan will be paid off, principal plus interest. When the project is completed, the Development Loan investors can expect a project sale or refinance, which will see them paid off. Of course, investors are welcome to continue investing in other projects.
As we’v seen, investing in the Development Loan makes you the bank. You can think of this type of investment just like a mortgage. If a home buyer puts up 30% of a home’s value as down payment, and the bank puts up the other 70% as a mortgage loan, that is like what the Development Loan investment does for the Equity investment. The home could drop in value 30% and the bank (or in our case the Development Loan investors) would still be made whole.
The equity investors on the other hand, are the first to take any losses. However, they also have an unlimited upside since they will take all profit above the project’s expenses which includes the Development Loan interest payments. Furthermore, just like a mortgage, the Development Loan provides leverage for the equity investors, and this amplifies their potential returns. This is because the potential profit, after interest and expenses, belongs to the equity investors alone, who may have provided much less than 100% of the needed capital.
You are always free to invest in either the equity part of a project, the Development Loan, or both!
