Recrowd

Basic information

For Investors

Why do companies borrow from RECrowd?

Companies choose to borrow from RECrowd because it provides an alternative funding source to traditional financial institutions. It allows real estate companies, especially those operating in Italy, to present their projects to a wide base of investors on the platform. RECrowd offers four types of projects that vary in risk, minimum capital, duration, and return, catering to different investor risk profiles. The platform also facilitates personalized negotiations between the company proposing the project and the investor, which is a unique feature that allows for the negotiation of the interest rate.

What happens if RECrowd ceases to operate?

If RECrowd were to cease operations, the details of how investors' funds are protected are not explicitly stated in the available information. However, as a general practice in the industry, platforms often have measures in place such as holding investments in a separate legal entity or having a wind-down plan. Since RECrowd is not regulated by a financial authority, as there is no current regulatory framework for real estate crowdfunding in Austria, the level of investor protection may differ from regulated platforms.

How Recrowd Works:

Investors on Recrowd can browse through various real estate projects listed on the platform. After selecting a project, investors lend money to property developers, with the loan amount starting at €250. These loans are typically repaid over the short to medium term, with investors receiving regular interest payments. Recrowd handles all the administrative and legal aspects, providing a seamless investment process for its users​

Risks When Investing on Recrowd:

Investing in Recrowd involves standard risks associated with real estate crowdfunding, such as project delays, market fluctuations, and the potential for developer default. Without a secondary market, investors should be prepared to hold their investments for the full term. Recrowd’s focus on due diligence and regulatory compliance helps mitigate some of these risks, but investors should still consider diversification to manage their overall exposure

Investment Types Offered:

Recrowd primarily offers debt-based investments in real estate projects. These projects may include residential, commercial, or mixed-use developments. Investors earn returns through interest payments made by the property developers, which are secured against the properties involved​