The financing of the real estate developer through co-promotion and crowdfunding.

Regulatory, environmental and energy constraints are disrupting an industry rooted in a model that is having difficulty reinventing itself. It will be necessary to rethink the act of building for our fellow citizens while preserving a virtuous economic model in line with the aspirations of private and public investors.

Attracting investors to new models that are more in line with this change is becoming a new field of opportunity, particularly through financing and investment. Indeed, the traditional financing of developers is based on three main pillars: the developer's own funds, of course, but also bank loans and the future state of completion (VEFA).

New sources of financing now allow it to extend its room for maneuver, including co-development operations, but also and especially with real estate crowdfunding. 

The new platforms allow developers to make real public calls for savings from small investors, and to be less dependent on bank credit.

Crowdfunding platforms can also finance the equity needed for the operation. Rates are often higher than bank financing, but financing a developer through real estate crowdfunding allows borrowing up to 100% of the amount needed to build equity. The multiplication of operations is then easier for the promoters wishing to extend and diversify their activities.

As a consulting firm, we help developers rethink their development model and strategy in the face of this increasingly important paradigm. We also propose a platform of exchanges in order to democratize, secure and simplify these financial arrangements while offering to the investors the possibility of easily accessing the promotional projects.

The PHÉBÉ team 

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