According to recent research by KPMG, the Middle East is one of the most promising regions for real estate crowdfunding.
The region has seen a ten-fold increase in deal value over the past two years.
Other studies have found that this is because entrepreneurs in the Middle East struggle to find adequate sources of funding and instead mostly rely on personal assets, family, and friends.
They face immense difficulties if they need to take out loans from banks.
Incredibly shows that only 8-10% of bank loans in the Middle East and North Africa go to entrepreneurs.
However, before you jump into this relatively new and exciting form of investment, there are a few things you should know.
Let’s start by finding out exactly what white-label real estate crowdfunding is.
What is White Label Real Estate Crowdfunding?
White-label real estate crowdfunding is a platform that allows multiple investors to pool their money together to finance a real estate project.
The platform is run by a sponsor, who is typically a real estate developer or an investment firm.
The sponsor brings the project to the crowdfunding platform, and the platform then markets the deal to potential investors.
If enough investors commit their money to the project, the deal is funded, and the sponsor can begin work on developing the property.
Once the property is completed and sold, the investors receive their share of the profits, minus any fees charged by the crowdfunding platform.
So let’s discover more about why this Fintech is making waves in the Middle East.
Why is White Label Real Estate Crowdfunding Growing in Popularity in The Middle East?
There are a few reasons why white-label real estate crowdfunding is growing in popularity.
One of the main reasons is that it offers a way for smaller investors to get involved in large development projects that they otherwise wouldn’t have access to.
One of the best reasons to white-label real estate crowdfunding in the Middle East is the high amount of interest from individuals in the region who are seeking to invest in property and development outside of their own countries.
“It offers a way for smaller investors to get involved in large development projects that they otherwise wouldn’t have access to.
Bank finance Can Be Difficult to Obtain In The Middle East
The Middle East is one area where this form of fundraising is becoming more popular because It provides more liquidity than traditional methods such as bank financing.
This can be difficult to obtain in the Middle East as we discovered at the top of the article.
The current political and economic situation in many Middle Eastern countries has made it difficult for individuals to invest directly in property there.
White-label real estate crowdfunding provides a way for them to do so without having to deal with the complexities of the local market.
If you’re considering using white-label real estate crowdfunding to finance a development project in the Middle East, there are a few things you should keep in mind:
- The regulatory environment for this type of fundraising is still evolving in the region, so it’s important to seek legal advice before moving forward with a project.
- There is a growing pool of potential investors in the Middle East who are interested in this type of investment, but it’s still a relatively niche market so you may have to work harder to find buyers for your project.
- You’ll need to have a strong marketing plan in place to attract investors, as well as a solid business plan and track record to give them confidence in your project.
By making sure you prepare thoroughly, white-label real estate crowdfunding can be a great way to finance a development project in the Middle East.
Just make sure you do your homework before getting started.
Benefits of White-Label Real Estate Crowdfunding
The Middle East is a hotbed of real estate activity, and white-label real estate crowdfunding is a relatively new way to get involved in the market.
If you’re interested in getting started with white-label real estate crowdfunding in the Middle East, here’s some of the main benefits.
The beauty of white-label real estate crowdfunding is that it allows smaller investors to get involved in bigger projects as we outlined earlier.
And because the investment is spread out among many people, the risk is also spread out, making it a more attractive option for some investors.
A Relatively New Concept
Another thing to keep in mind is that white-label real estate crowdfunding is still a relatively new phenomenon in the Middle East.
That means there aren’t a lot of regulations around it yet. One of the benefits of this is that it gives you more flexibility to structure your deal.
But it also means you need to be extra careful to do your due diligence and make sure you’re working with a reputable platform.
So as with any kind of investment, there are always risks involved.
But what should you be aware of when it comes to White label Real Estate Crowdfunding? Let’s take an in-depth look.
Risks Associated with White-Label Real Estate Crowdfunding
Another risk to be aware of is that real estate crowdfunding is still a relatively new phenomenon, so there isn’t a ton of historical data to go on when it comes to performance.
That being said, there are plenty of success stories out there, so don’t let this deter you from getting involved if you’re interested.
As with any kind of investment, there’s always the potential for loss.
Real estate crowdfunding is no different, so make sure you only invest an amount that you’re comfortable with and that you can afford to lose.
Here are another few things to bear in mind if you are thinking of white-label real estate crowdfunding in the Middle East or indeed anywhere else across the globe.
Choose Location Wisely
According to real estate guru Barbara Corcoran, “The number one rule in real estate is location, location, location.”
When you’re looking at a White Label Real Estate Crowdfunding opportunity, it’s important to do your homework on the location of the property that will be funded.
Make sure you understand the current market conditions and what the prospects are for the area.
Check Out The Quality
You’ll also want to look at the quality of the property itself. Is it a fixer-upper or in move-in condition?
What kind of repairs or upgrades will be needed?
These are all important factors to consider when evaluating a White Label Real Estate Crowdfunding opportunity.
Work With An Experienced Management Team
Another thing to keep in mind is the management team behind the project. Do they have a good track record of successful projects? Are they experienced and reputable?
These are all important factors to consider when choosing a White Label Real Estate Crowdfunding opportunity.
If you do your homework and choose a reputable, experienced management team with a proven track record, investing in White Label Real Estate
Crowdfunding can be a great way to earn passive income and build long-term wealth.
And To End On…
So finally, you need to be aware that not all crowdfunding platforms are created equal. Some have been in the business for a long and are more established, while others are newer startups that might not have the same level of experience or track record.
So it’s important to do your homework and only invest through a platform that you feel comfortable with.
Here at fundraisingscript.com we’ve been in business for over 5 years and have a solid track record of successful projects.
We’re also white-label partners with some of the leading crowdfunding platforms in the US, so you can be sure that your investments are in good hands.
For a 1-to-1 meeting with one of our crowdfunding platform experts, then don’t hesitate to get in touch today to discover more about how you can get started with white-label real estate crowdfunding in the Middle East.