How to invest in real estate via Flint crowdfunding

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Real estate is one of the most popular investments among Filipinos. It is a very good asset because property prices, most of time, are subject for fast appreciation, which become a way for everyone to earn passive income.

Real estate in the Philippines

Aside from that, unlike paper assets such stocks or mutual funds, real estate is a tangible asset that you can actually even use for personal utility. There are numerous ways for a regular Filipino to earn income from real estate. Some are the following:

  • Long term renting (commercial renting, office spaces leasing)
  • Short term renting (apartments leasing, Airbnbs etc)

In the Philippines alone, property prices have increased much in Manila over the years. Below you can see the year-on-year price increase for 3-Bedroom Luxury condominiums in Makati from 2013 to 2018:

YearProperty prices
201815.55%
201710.40%
20169.95%
201513.43%
20147.11%
201314.37%

However, most of the Filipinos cannot afford to invest in a property considering the currently staggering prices in the cities. Provincial property rates are also spiking up nowadays. But don’t lose hope; I learned recently that there is still a way for you to invest in real estate as low as P1000. Yes, you read it right – for only 1000 pesos! This is through REAL ESTATE CROWDFUNDING.

What is Crowdfunding?

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.

The emergence of crowdfunding activities in the Philippines in recent years now valued to millions has compelled the Securities and Exchange Commission (SEC) to craft rules and regulations that will govern them. In fact, SEC has released its approved rules on crowdfunding on July 2019.

Crowdfunding in Real Estate: How does it work?

In a nutshell, real estate crowdfunding is a way to invest in properties using small amounts of capital from several individuals. This is mostly done through crowdfunding platforms that bring together sponsors and investors. Real estate crowdfunding requires two parties: the sponsor and a group of investors. The sponsor scouts out the property and raises the funds needed for acquiring and managing its daily operations.

In the Philippines, this innovative way of investing in property is being done and conducted by Signet Properties, a lead generation and property listing platform. Together with SeedIn Technology and RE/MAX Premier Manila, Signet Propery has launched the platform called Flint.

Flint is the FIRST, TECH-ENABLED, LOW-COST Philippine real estate crowdfunding platform.

Here’s how it works:

  • Flint builds, develops and maintains a tech-abled platform powered by Seedin PH’s efficient financial system, which supports Flint’s crowdfunding ecosystem. Seedin PH has five years of experience as a business financing platform and has facilitated over Php7.3 billion worth of funds. Seedin PH is being regulated by SEC.
  • ReMAX Philippines brokers income-generating and/or capital-gaining real estate properties in Flint’s pre-funded portfolio.

At Flint, they pre-funded all real estate properties in their real estate portfolio. This means users can quickly purchase a share of the real estate property (or more) regardless of whether or not total Flint user investment has reached the investment amount of the property selected. Moreover, pre-funding the properties allows Flint to secure higher interest. And again, for as low as 1000 pesos, you can invest in the platform!

If this is something that sparks your interest, I recommend you go to their website at https://www.flint.com.ph/. Read their FAQs and connect to their technical support that can give you more idea on how the platform works. We advocate “informed” investing so make sure you understand how does the process works before investing to anything.

Author: Dean Bernales

Dean Bernales is a brand strategist on behalf of Flint PH, a pioneer in real estate crowdsourcing in the Philippines.

Opinions stated in guest posts are the author's exclusively and do not represent that of this website or its editors.

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