Welcome to another episode of the Invest In You Podcast.
Fredrik, Charlie and Ivan discuss the basics of crowdfunding and how it can help you. There are many way you can invest money and crowdfunding is a growing area. With interest rates close to zero crowdfunding can be a great investment opportunity.
Fredrik talks about the need to be smart about the investments you choose and why you should consider the track record of the people involved, as you are heavily reliant on their success. Consider the projects forecast for success and the need to spread your investments across multiple platforms and varies projects. Ensure to think about what your investing in, does it affect the environment? or have negative morale implications?
As a borrower of crowdfunding finance, you risk the deal could not get funded, or the platform used not finding you an audience willing to invest. However when a project does obtain investment you can have multiple rounds of funding as your project progresses, and as your status grows you will become more well known and as a result people will approach you to invest in your ventures, rather than you approaching them.
Example of a deal - Your property puzzle limited
Turning the property into a HMO and toward the end of the project you will obtain a share in the project
Region: UK: South-East
Term: 1 year
Property Type: Residential
Property Stage: Existing Property
Security: Partially Secured
Target Yield: 8.00%
https://investincrowd.envestry.com/deals/1922
KEY TAKEAWAYS
What is crowdfunding? - Where you fund a project or venture, and raise an amount of money of any amount and back by a number of people, usually conducted via an online platform.
How does it work? - If you are on the side seeking funding, you need to create a pitch for your project or venture, understand how much you are looking for and
What are fees involved with crowdfunding? - There are potential transactions costs and fees for the crowdfunding platform itself. However if you pick the right one as the investor you will have no fees to pay, these are usually absorbed by the party seeking the funding ie. the borrower.
What does the risk warning mean? - This means The crowdfunding platform is not responsible for your money. Such as lack of liquidity, loss of the value of investment, delusion of shareholding. When you invest any lost in value this isn’t covered by the financial services compensation scheme.
BEST MOMENTS
A crowdfunding platform is like an advertising board, where you can display your project and people can meet each other
Always be pitching
Only invest money that in theory, you are willing to lose.
Spread your investments so that if you lose, you haven’t lost everything, and realise that even in a loss you learn and gain knowledge
As crowdfunding investment increases you could end up with less pieces of the pie, although the pie will be much bigger
Crowdfunding can compound your finances and give you a great return with interest.
VALUABLE RESOURCES
https://investincrowd.envestry.com/deals
https://www.kickstarter.com/
http://www.crowdinvest.com/
https://www.crowdwithus.london/
https://www.crowdproperty.com/Financial conduct authorities
ABOUT THE HOST
Serial entrepreneurs Fredrik, Charlie and Ivan Sandvall love sharing ideas and interviewing world-class entrepreneurs and influences. Invest In You is about investments, entrepreneurs, personal development and doing fun things. They hope to insure you to take action, helping others and yourself, plus enjoying the journey we call life.
CONTACT METHOD
Facebook - https://www.facebook.com/investincrowd/
Crowdfunding platform - https://investincrowd.envestry.com/deals
Your Property Puzzle Limited - https://investincrowd.envestry.com/deals/1922
