Crowdfunding for real estate is booming. The advantages outweigh other forms of real estate investments. Nevertheless these investments are not automatic. The crux is the right choice of project. Michael Stephan, Managing Director of real estate crowdfunding platform iFunded.de, explains what investors must be aware of.
Editor: Mr. Stephan, what should investors look for in real estate crowdfunding to invest successfully?
Mr. Stephan: Choosing the right real estate project.
Editor: Is that possible without any real estate know how?
Mr. Stephan: No, without the necessary experience in real estate investments investors will have a hard time estimating whether a project has a guarantee of success or is doomed to failure.
Editor: But only few have this knowledge…
Mr. Stephan: That’s right. I see this being the duty of the platform operator.
Editor: How so?
Mr. Stephan: The platforms need to ensure that only thoroughly examined projects are offered. To accomplish this, the platform must be able to rely on real estate professionals who can assess the individual risks of real estate projects properly.
Editor: And as an investor, how do I know whether the platform has this expertise?
Mr. Stephan: As an investor I would be sceptical about platforms which not only offer real estate projects but also start-ups for example. The specialization in real estate is crucial in my opinion. With iFunded investors can be sure that we only offer projects in which we would invest ourselves.
Editor: From where does iFunded have this expertise?
Mr. Stephan: Our platform was co-founded by real estate experts. Einar Skjerven has over twenty years of experience in real estate, and our CIO Alexander Punt has twelve years’ experience. They both exactly know what is important in real estate projects. That is what makes iFunded.
Editor: Thank you very much for this interview Mr. Stephan.