How to invest in real estate without having to buy buildings directly, and without depending, either, on the financial markets?
We think of course first of all of the famous real estate investment companies (SCPI), which manage property and redistribute the rents to their shareholders. If they have been favored by savers for several years, there are other real estate investment products not listed on the stock exchange, with different investment logic, in particular crowdfunding, real estate funds and real estate companies (SCI).
With crowdfunding, the saver lends money, through a crowdfunding platform, to a real estate actor so that an operation can be set up. It is often a promotion program (such as the construction of a new residential or office building) or a major renovation of an existing building by a property dealer.
In these two scenarios, the repayment of the bond loan granted to this actor will take place once all the lots have been marketed. The operation will therefore generally unblock after twelve to thirty-six months.
The advantages of crowdfunding
Participating in these projects often allows you to benefit from a very interesting performance, between 7% and 12% per year. Enough to beat down many other investments. “The yield served is high here because the saver is paid on part of the margin of the promoter or the property dealer. It has nothing to do with the logic of a traditional real estate investment transaction for which the income is the rent ”, explains Guillaume Lucchini, founding partner of Scala Patrimoine, a wealth management firm.
In addition to its potentially significant return, real estate crowdfunding has several other advantages. It is easily accessible to all, thanks to an online subscription. It does not require to immobilize its capital over a long period. And entrance tickets are modest – a few hundred euros. The other side of the coin: as this investment relates only to a single project, we could lose all the invested capital if the operation is convertible or if the operator goes bankrupt. In order to minimize risks, it is advisable to build up a diversified portfolio by mixing operations and platforms.
Second possibility to access unlisted stone: real estate funds, which can be found on the market under the acronyms OPPCI (professional real estate collective investment body), FPCI (professional private equity fund) and FPI (real estate investment fund) . Most often offered by private banks and wealth management advisers, these “turnkey” investments often require a significant financial commitment – a few tens of thousands of euros, or even 100,000 euros.
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