Real estate group purchases vs real estate crowdfunding

In the context of European and specifically Belgian regulation, it is crucial to make a clear distinction between group buying of real estate and real estate crowdfunding. Both concepts are often used interchangeably, especially when it comes to online financing platforms used for one form or the other.

Unlike the US JOBS Act of 2012, which established specific provisions for crowdfunding and syndication, Belgium has its own rules and regulations shaping the real estate finance landscape. In Belgium, real estate crowdfunding refers to an alternative financing method where a large number of people invest a small amount in a real estate project. On the other hand, group buying of real estate often refers to an alliance of investors pooling resources to finance a larger project, usually through a partnership, corporation or other type of investment vehicle.

Deepening the Belgian regulatory environment

In Belgium, real estate crowdfunding comes under the supervision of the Financial Services and Markets Authority (FSMA). Platforms must comply with specific requirements and regulations to operate legally. Among other things, they must ensure transparency, protect investors' interests and clearly communicate potential risks.

In contrast, buying property in groups is a less regulated form of investment. While there are still legal frameworks, such as the requirement to set up a legal entity (e.g. a company) to manage the property, there is more flexibility in the operational aspects. This can have both advantages and disadvantages, depending on the specific project and the parties involved.

In both cases, it is essential for investors to conduct thorough research and seek professional advice before investing. Understanding the underlying regulations and potential risks is crucial to making informed investment decisions.

Immotokens and Real Estate Group purchases

In the ever-changing landscape of real estate investment, Immotokens is playing a pioneering role in Belgium by offering innovative solutions for group buying of real estate. Immotokens has developed two specific formulas that meet the needs of different types of investors. The "co-invest" formula allows investors from €100,000 to become direct owners of real estate, recorded at the notary. This offers a direct and traditional form of co-ownership. For those who want to start with a smaller initial capital or seek more flexible access to property investment, Immotokens offers an alternative option. Through the purchase of immotokens - with an entry from as little as €1,000 - investors can indirectly participate in real estate projects. Each immotoken represents a stake in a specific real estate project, allowing investors to benefit from the growth and returns of that project without the need for direct ownership. This innovative model democratises access to property investment and offers a range of opportunities for both experienced and novice investors.