Property Buyers (Crowdfunding)
For each crowdfunding project, there is a project owner who creates the project, dictates the terms, and carries out all the administrative work of transacting property. This owner can be a person or a company.
What we do is similar to a REIT (real estate investment trust) where people can pool together funds to purchase property controlled by the group. This concentrates some of the logistical and administrative burden of finding/maintaining property, and lowers the financial hurdle of investing in property. But unlike a REIT, the group can fund specific properties.
Right now, project owners need to contact us to create a project but soon we will allow this process to be done on our site. Once the project listing is created, the owner determines the number of fractional shares and the price. Then they make the project live and investors can start participating.
During these early stages of our platform, project owners should expect they’ll need to market the project themselves to their network. As Fractal’s community grows, we will bring potential investors to these projects.
There’s been a lot of interested in managing real property with DAO’s. The technology & governance ability is still in early days, but as it matures, we may adopt them if they can improve our processes. Click here to read more about one way this is done.