Sep 25, 19By Rizza Sta Ana

Crowdfunding is the quickest route for investors to raise money or capital for a single investment. Popular websites such as Kickstarter, GoFundMe and Indiegogo have made crowdfunding not only as a legitimate business model but also an investment opportunity for those who wanted to have a share of the meat of the pie but don't have large amounts of cash to get it. Crowdfunding has helped so many dreams to become a reality. Crowdfunding has helped fund movies, buyback foreclosed properties, to as simple as financing entrepreneurs with their business ideas.

A key contrast among crowdfunding and progressively customary techniques for fundraising is the venue where is conducted. Thanks to the Internet, anyone can set up a crowdfunding page, provide details as to why and how the funds will be used, and benefits investors will get should they choose to fund. Customary fundraising activities usually happen in avenues that are not accessible to the average Regular Joe, and one needs to be vetted to be able to participate.

Real Estate Investment for Shares?

Thanks to technology, real estate investors are becoming more open to embracing crowdfunding as an option in contrast to conventional methods for real estate financing. While each real estate crowdfunding platform seems to take a different approach, the ultimate goal is to provide real estate investors who are on a budget or who would like to diversify their money to value-added properties. Some are crowdfunding loans to buy properties or fund mortgages to real estate buyers. In the Philippines, donation and rewards-based crowdfunding are popular in smaller sizes.

Managed and usually backed by SEC-registered financial organizations, crowdfunding companies allow members to invest in assets-backed and income-generating real estate properties for as low as a reservation fee for a condo for sale up to a downpayment for a house and lot for sale. Because these investments are well-leveraged, they are already considered liquid in paper and can be treated as equity in proportion to the money invested.

Is Crowdfunding safe?

Real estate crowdfunding is a relatively new concept in the market today, but it has not stopped real estate investors, particularly from the OFW community to divest their hard-earned money into crowdfunding. The biggest positive benefit of taking part in real estate crowdfunding is that first-time investors will have access to a national to global network of investors who can also shed real estate market and investment insider insights.

On the other hand, the infancy stage of real estate crowdfunding might scare those who wanted to enter into a secure and stable market. Investors like them can always partake tried and tested real estate investments that operate on real estate crowdfunding concepts. 

REIT or Real Estate Investment Trust allows investors to buy and sell securities and grow their portfolio. In some REITs, an investor’s portfolio growth opens to opportunities of creating their own stock in the future.Some resort to buying real estate stocks and other financial instruments from real estate developers. In 2018, Ayalaland offered 10-year bonds that yield 5.92 percent annually for the first five years.

There's no doubt that online real estate websites like are primed to transform their user-friendly platforms to provide crowdfunding opportunities to Filipino homebuyers. But at the end of the day, whatever the investment choice is, is a few steps away towards homeownership in the foreseeable future.

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