Before individuals invest into an online crowdfunding platform, they are always quick to ask how long it will take for them to start receiving returns on their investments. In order to ensure transparency in agreement, most crowdfunding platforms are also quick to provide the necessary information on their websites.

There is a consensus among most crowdfunding firms that collection of funds through their platforms only begins when the project has been secured, which means that all legal issues must have been settled and permit to build must have also been received. Typically, projects usually have a timeline between 12 to 18 months for completion.

French real estate crowdfunding platform Lymo.fr shares the chronology of a real estate crowdfunding project on their platform:

• A crowdfunded project has a lifespan of 24 months.
• Construction work begins by the 12th month (this is after finance has been raised through crowdfunding) and it continues for the next 12 months.
• A 6 months provision is made for unforeseen events/contingencies that could negatively affect the progress of the project.

Below is timeline for a typical crowdfunded building project:

Time Frame

(months)

Project Focus

1-3

· Signing of necessary documents (such as pre-sale contracts)

· Employing the services of an architect and submitting license to the appropriate quarters.

3-7

· Secure a building permit. This should take 3 months.

7-11

· The building permit undergoes a period of accreditation (this period is allowed in order to check the true owner of the property).This should not exceed 2 months.

12

· Launching of crowdfunding campaign.

· Purchase of property and signing of deed.

12-24

· Execution of project

24

· Project delivery and termination of agreement.

· Payment of capital plus interest to investors

The above crowdfunding timeline provides transparency in the execution process of a project. This is a major benefit of a real estate crowdfunded project over traditional methods of investments. Investors can at a glance view the progress of the projects they have invested in and are also able to hold the platforms responsible if they default in its execution.

*Above is aggregated content. TimesRealtyNews.com claims no responsibility for the accuracy of the content published by the original source.

http://blog.lymo.fr/chronologie-dun-projet-lymo/

Photo credits — christiangoth.com

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