The 5 essential criteria to avoid a bad deal in real estate crowdfunding

You've spotted a real estate crowdfunding project with a 10% return, super well presented, well located, with visuals that make you want it... but how do you know if it's a good deal or a future nightmare?

In the world of real estate crowdfunding, appearances can be deceptive . And the line between a solid project and a risky one is often thin.

Here are the 5 essential criteria that every investor must absolutely check before clicking "Invest" . These are the basics to avoid unpleasant surprises.

1. The strength of the promoter: experience counts

The promoter is the conductor of the project. If he goes off the rails, the whole project can collapse.

Before investing, check:

• How long has it been active?

• How many projects he has already completed

• Its success rate / delays / defects

• If it is already known quality platforms

💡 Tip: Favor developers with at least 3-5 completed projects with investor reimbursement.

2. The financing plan: balance or tinkering?

A good project is based on a coherent financial structure .

You must have:

• A reasonable share of equity provided by the promoter (at least 10 to 15%)

• Bank financing already approved or on track

• Pre-sales or pre-marketing started

📌 A project too dependent on crowdfunding = red alert .

3. The location of the project: not just “pretty city”, but real demand

Location is the basis of any real estate project . But don't be fooled by a simple "in the South" or "near the sea."

Analysis :

• Actual demand in the area (rental or purchase)

• Demographic evolution

• Upcoming urban projects (developing area or saturated area?)

🧠 Bonus: look for areas with an imbalance between supply and demand , even outside major cities.

4. The pre-marketing level: a project that sells… or not

A good project is also a project that finds a buyer quickly .

Look at :

• The announced pre-sale rate : the higher it is, the lower the risk

• The typology of lots sold (not just investment studios)

• The promoter's ability to sell without selling off

💡 30 to 50% pre-sales before work starts is generally a good signal.

5. The time limit and conditions of reimbursement: no gray area

You need to know when and how you will be reimbursed.

Check:

• The expected duration of the project (the shorter it is, the riskier it is if something goes wrong)

• The estimated repayment date

• What is provided in the event of delay (extension? additional interest? exit clause?)

📌 Good projects are clear, with specific deadlines. Be wary of "vague" proposals.

In summary: invest, yes, but never blindly.

Before you start a real estate crowdfunding project:

✅ Analyze the promoter

✅ Scrutinizes financing

✅ Study the location

✅ Observe the marketing

✅ Understand the refund conditions

And above all, don't hesitate to ask the platform questions. The best ones are fully transparent .

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Performance is good. Discernment is better.