As we’ve said before in this blog, when traditional bank loans grow scarce, crowdfunding initiatives can take off. That is the case in Spain. As Fortune reports, Álvario Luna and Tono Brusola (who is also founder of popular cloud phone service Upptalk) were trying to raise money for projects, but found mostly investors with little money to invest.
With the market virtually closed to mortgages, selling properties is a challenge, in spite of the 40% devaluation that real estate market has gone through in the country. That’s when they saw the opportunity to start a crowdfunding website to allow those small investors to take advantage of the crashed real estate market, something that only big banks had been doing.
Last week they founded Housers, which they claim is the first real estate crowdfunding platform in Spain. They have established partnerships with real estate brokers all over the country to put their projects in the site, while choosing the most interesting ones for investors.
Investors can participate with as little as 500 euros. Yield can be provided both in the form of rentals and in valuation, with return rates expected to be between 31% and 75% in 5 years, depending on the performance in the market.
The project is still in its earliest stages, but the scenario is good for such initiatives. Overall, in the short period of history since the first crowdfunding platforms were launched and became popular, the trend is clear: crowdfunding grows when traditional ways of financing, such as bank loans, become less available to everyone. In fact, crowdfunding appeared as an alternative to those traditional channels.
The foundation of Housers and so many other equity crowdfund portals proves that we’re now going through the second wave in this newly developed industry. We can expect a lot of changes, from number and sizes of players to legislation. All in all, one thing is certain: crowdfunding will certainly change the world.