Author: Buy2Greece

  • Rent2Greece-Ειδικό αυτοκόλλητο σε όλα τα rooms to let

    Σημαντική αλλαγή στα τουριστικά καταλύματα, φέρνει τροπολογία του υπ. Τουρισμού με την οποία θα πρέπει να υπάρχει ειδική σήμανση σε κάθε δωμάτιο του τουριστικού καταλύματος ώστε να αποδεικνύεται ότι λειτουργεί νόμιμα,

    Η ειδική αυτή σήμανση θα ακολουθεί την έκδοση του Ειδικού Σήματος Λειτουργίας του καταλύματος.

    Επιπλέον θεσμοθετείται η αρμοδιότητα έκδοσης και χορήγησης της σήμανσης στον Σύνδεσμο Ελληνικών Τουριστικών Επιχειρήσεων (ΣΕΤΕ).

    Τέλος, επιβάλλεται από τα αρμόδια όργανα του Υπουργείου Τουρισμού πρόστιμο ύψους 1.000 (χιλίων) ευρώ ανά τουριστικό κατάλυμα σε περίπτωση μη συμμόρφωσης του φορέα επιχείρησης που εκμεταλλεύεται τουριστικό κατάλυμα στην υποχρέωση επικόλλησης σε κάθε δωμάτιο του ειδικού θεωρημένου αυτοκόλλητου.

    Προτεινόμενη Διάταξη
    1. Στο άρθρο 2 του ν. 4276/2014 (Α’ 155) προστίθεται παράγραφος 6 που έχει ως εξής:
    «6. Από την 1.4.2015 και εφεξής τα τουριστικά καταλύματα των υποπεριπτώσεων αα, γγ, δδ ως προς τα ξενοδοχεία που αποτελούν μέρος του σύνθετου τουριστικού καταλύματος, εε, στστ της περ. α και της υποπερίπτωσης γγ της περ. β της παρ. 2 του άρθρου 1 του παρόντος νόμου υποχρεούνται να επικολλούν σε κάθε δωμάτιο αυτών ειδικό θεωρημένο αυτοκόλλητο νόμιμης λειτουργίας στο όποιο θα αναγράφεται ο αριθμός του Μητρώου Τουριστικών Επιχειρήσεων (ΜΗ.Τ.Ε.) και η επωνυμία της επιχείρησης. Το ανωτέρω αυτοκόλλητο θα έχει ετήσια ισχύ και θα εκδίδεται σε αριθμό αντιτύπων ίσο με τον αριθμό των δωματίων του τουριστικού καταλύματος, σύμφωνα με το ειδικό σήμα λειτουργίας του. Έκαστο αντίτυπο θα φέρει ειδική θεώρηση και αύξοντα αριθμό εκδόσεως σε συνάρτηση με τον αριθμό των δωματίων του τουριστικού καταλύματος. Το προβλεπόμενο στην παρούσα παράγραφο αυτοκόλλητο θα εκδίδεται από τον Σύνδεσμο Ελληνικών Τουριστικών Επιχειρήσεων (Σ.Ε.Τ.Ε.) ή από επαγγελματικές ενώσεις μέλη του, στα οποία θα μεταβιβάζεται από τον Σ.Ε.Τ.Ε. η σχετική αρμοδιότητα κατόπιν καταρτίσεως εγγράφου συμβάσεως αντίγραφο της οποίας θα πρέπει να κοινοποιείται στο Υπουργείο Τουρισμού. Το αυτοκόλλητο θα χορηγείται κατόπιν προηγούμενης αίτησης του επιχειρηματία και αφού προηγηθεί διασταύρωση των στοιχείων του τουριστικού καταλύματος με το μητρώο τουριστικών επιχειρήσεων που τηρεί το Υπουργείο Τουρισμού. Με απόφαση του Υπουργού Τουρισμού θα καθορίζεται ο τύπος και τα χαρακτηριστικά του προβλεπόμενου στην παρούσα παράγραφο αυτοκόλλητου, οι όροι, οι προϋποθέσεις και η διαδικασία έκδοσής του καθώς και κάθε άλλο στοιχείο απαραίτητο για την εφαρμογή της παρούσας.»

    2. Στο άρθρο 7 του ν.4276/2014 προστίθεται παράγραφος 21 με το εξής περιεχόμενο:

    «21. Στο φορέα επιχείρησης που εκμεταλλεύεται τουριστικό κατάλυμα το οποίο δεν συμμορφώνεται με την υποχρέωση εφοδιασμού του ειδικού αυτοκόλλητου, όπως προβλέπεται στην παράγραφο 6 του άρθρου 2 του ν.4276/2014, επιβάλλεται από τα αρμόδια όργανα του Υπουργείου Τουρισμού πρόστιμο ύψους 1.000 (χιλίων) ευρώ ανά τουριστικό κατάλυμα.»
  • Buy2Greece.com-DELTA INCREASES FREQUENCY BETWEEN ATHENS AND NEW YORK FOR SUMMER 2015

    Nov 11, 2014

    ATHENS, November 11, 2014 – Delta Air Lines (NYSE: DAL) is increasing its flights from New York John F. Kennedy International Airport to Athens International Airport for the 2015 summer season.

    Delta will resume operations with a five-times weekly service from March 30, 2015, growing to daily on May 2, 2015. From June 2, 2015, additional flights will be added bringing the weekly total to 11. During the peak summer months, Delta will offer up to 5,900 weekly seats between Greece and the United States. All services from Athens are operated in conjunction with Delta’s joint venture partners Air France-KLM and Alitalia.

    “The UN World Tourism Organisation recently confirmed the importance of tourism to the Greek economy, and Delta is proud to support this by connecting Athens to New York – one of the world’s most important travel and trade hubs,” said Perry Cantarutti, Delta’s senior vice president for Europe, Middle East and Africa. “We hope that by increasing our frequency next year, we are able to facilitate even higher tourism and business traffic as Greece continues its economic recovery.”

    According to the Association of Greek Tourism Enterprises (SETE), in 2013 almost 755,000 U.S. tourists visited Greece – a 35% increase of the previous year.

    Delta’s Athens to New York-JFK schedule is as follows:

    Flight number Departure Arrival
    DL263 Athens at 12:00 noon (daily) New York-JFK at 3:45 p.m.
    DL042 New York-JFK at 4:30 p.m. (daily) Athens at 9:30 a.m. (next day)
    Flight number Departure Arrival
    DL216 Athens at 2:30 p.m. (Monday/ Wednesday/Thursday/Saturday) New York-JFK at 6:25 p.m.
    DL417 New York-JFK at 7:30 p.m. (Tuesday/ Wednesday/Friday/Sunday) Athens at 12:45 p.m. (next day)

    Delta’s Athens services are operated using Airbus A330-300 and Boeing 767-300 aircraft, featuring fully flat-bed seats with direct aisle access in a 1x2x1 configuration in the BusinessElite cabin. Customers flying in Economy Comfort, Delta’s premium economy service, benefit from up to four additional inches of legroom and 50 percent more recline than Delta’s standard international Economy class seats, as well as priority boarding. Other product initiatives being rolled out across Delta’s international fleet include the expansion of Wi-Fi service by the end of 2016.

    Customers wishing to book travel on Delta’s nonstop service to New York can see their travel agent call Delta’s dedicated reservations team on 14654 or visit delta.com.

    Notes to Editors:

    Delta’s 11th weekly flight (departing Athens on Saturdays from June 6, 2015) will be on sale from November 22, 2014.

  • Buy2Greece.com-Volotea to fly from Greece to Italy starting in April

    Spanish low-cost carrier Volotea announced it will be using Athens International Airport as a hub as of spring, when it will start operating scheduled flights from the Greek capital to four destinations in Italy and even a domestic service.

    Volotea chief executive Carlos Munoz stated in Athens that the airline will fly from Athens to Venice, Bari, Palermo and Pisa as well as to Santorini, starting from April.

    The airline has been operating charter flights to 10 Greek airports since 2012, has brought over 190,000 passengers and is also planning to expand to the airports of Thessaloniki and Zakynthos.

    source: ekathomerini

  • Buy2Greece.com – EIBTM 2014 announces the Top 10 Innovations transforming the meetings industry

    EIBTM, the leading global event for the meetings and events industry, has announced the Top 10 Innovations showcased in this year’s specially designated area of the Innovation Zone. The companies were chosen from those who applied to showcase technological, social or design innovations demonstrating revolutionary solutions, applications and the very latest technologies that can transform the meetings, events and business tourism industry.

    The Top 10 Innovations appearing this year are:

    Tech Watch winner Live Group ‘IPS Locator Function’, a dedicated App intended to transform the communications experience for event and meeting planners, by enabling delegates to position themselves, locate others and find specific areas on an interactive floor plan.

    Sli.do (www.sli.do), an audience engagement platform for live events that makes it easy for anyone in the audience to ask questions and vote on live polls via their devices.

    Social Tables, the industry’s leading provider of cloud-based hospitality software that positions venues to work more collaboratively and efficiently with their event and meetings customers.

    Time2®which will be conducting live demonstrations of its web-based event networking solution, which enablesprofessionals at event or on the move to connect more efficiently and increase their networking opportunities.

    DPA Microphones, which will present its new d:screet™ Necklace Microphone.

    Lemon & Orange which provides augmented reality based solutions for mobile devices, websites and big screens as well as interactive applications.

    The Top 10 Innovations also include new product launches:

    Centium Software’s EventsAir, which is a cloud-based, cutting-edge solution for event and meeting professionals that provides a robust environment that leverages its cloud architecture for all types of events, conferences, tradeshows and meetings offering tools such as mobile apps, real-time run sheets, budget forecasting, reporting, analytics and much more.

    • Init Live, which takes a mobile-first approach to managing the team on the ground. The cloud-based system includes a web service and a free mobile device app. It equips event planners, event staff and volunteers with a real-time communication system and a comprehensive scheduling service.
    • Showslice, which is an online platform where organizers of large meetings and events can communicate their upcoming event requirements with each other in order to connect, coordinate and share some of the infrastructure costs back-to-back at one venue, introducing the concept of sharing economy to the meetings and events industry.
    • Slidebox which provides IT services for speakers to manage their presentations and share their knowledge with their audience.

    This year, the EIBTM Innovation Zone has been re-designed with a new look and feel. One of the new features includes Innovation in Action – a multimedia showcase of leading meetings industry innovations as they are applied in real situations, providing global suppliers such as hotels or venues, the opportunity to present case studies around their innovative solutions to enhance the event participants’ experience and move the industry forward. NH Hotels, Marriott Hotels, Artexis and Hyatt Regency Paris Charles de Gaulle are moving the meetings and events forward with their innovative solutions and will show how they have implemented innovation to provide new solutions to customers in this special area.

    The Innovation Zone is also bringing back the Genius Zone, sponsored by DoubleDutch, where everyone can dive into the world of event mobile application, receiving inside knowledge through live demonstrations and one-to-one information sessions.

    Source:- EIBTM

  • Buy2Greece.com – Sabre Corporation is developing travel services that work across the emerging spectrum of wearable technology including smartwatches and Google Glass, preparing for the dramatic impact wearables will have on the way consumers shop for and experience travel. Researchers expect a large proportion of the population to embrace wearable computing in the near future as evidenced by the adoption trajectory of other technology advances like the smart phone and tablets. Juniper Research forecasts that worldwide spending on wearable technology will hit $1.4 billion this year and will reach $19 billion by 2018. Further, wearable computing is already expanding beyond the early adopters and quickly becoming more mainstream, according to International Data Corporation (IDC). The research firm estimates that more than 19 million wearable computing devices will be sold in 2014, and forecasts the global market to reach 111.9 million units in 2018. TripCase, Sabre’s leading travel itinerary management app, is the first travel app of its kind to integrate with the highly-anticipated Samsung Gear S smartwatch, launched Nov. 7 in the US market. The integration allows the traveler to click the notification on the watch to open the TripCase app to the relevant place on the mobile device, and will include a click-to-call feature next month. In addition, consumers using Android Wear devices and the Pebble and Pebble Steel watches can receive TripCase travel notifications directly to their wearable devices. TripCase users wearing these smart devices will receive real-time flight alerts, gate changes and other travel information conveniently on their wrists at a time when minute counts. This initial integration lays the ground work for more advanced TripCase services to be accessible on wearable technology in the future. TripCase is on pace to manage more than 25 million trips in 2014. “As the adoption of wearable technology grows, we want to ensure that the travel industry is ready to leverage this technology and serve travelers on the device they prefer,” said John Samuel, senior vice president of Sabre Travelers Solutions. “Wearable technology is fast becoming a prominent means of customer notification and communication. We’re looking to take it even further – from a one-way means of communications to an interactive, on-the-go service experience,” said Samuel. Sabre recently showcased its Google Glass prototype travel app at the World Travel Market in London. The app can find a flight based on a user’s simple voice command, for example: “Ok Glass, Find a Flight from London Heathrow to Miami in June.” “Wearable technologies – such as smartwatches and heads-up devices like Google Glass – will forever change the way consumers experience travel – from shopping via virtual reality to voice command recommendation,” continued Samuel. “Creating these full service experiences require not just smart devices but also more precise location services and smart recommendation services.” Sabre Labs, the technology incubator and research lab at Sabre, continues to explore the application of geo-location technologies and their application to wearable devices in the travel experience. Understanding a traveler’s precise indoor location and developing services that use that context to share information and interactions on wearables will be a critical piece in creating a more intuitive experience for travelers.

    Sabre Corporation is developing travel services that work across the emerging spectrum of wearable technology including smartwatches and Google Glass, preparing for the dramatic impact wearables will have on the way consumers shop for and experience travel.

    Researchers expect a large proportion of the population to embrace wearable computing in the near future as evidenced by the adoption trajectory of other technology advances like the smart phone and tablets. Juniper Research forecasts that worldwide spending on wearable technology will hit $1.4 billion this year and will reach $19 billion by 2018. Further, wearable computing is already expanding beyond the early adopters and quickly becoming more mainstream, according to International Data Corporation (IDC). The research firm estimates that more than 19 million wearable computing devices will be sold in 2014, and forecasts the global market to reach 111.9 million units in 2018.

    TripCase, Sabre’s leading travel itinerary management app, is the first travel app of its kind to integrate with the highly-anticipated Samsung Gear S smartwatch, launched Nov. 7 in the US market. The integration allows the traveler to click the notification on the watch to open the TripCase app to the relevant place on the mobile device, and will include a click-to-call feature next month. In addition, consumers using Android Wear devices and the Pebble and Pebble Steel watches can receive TripCase travel notifications directly to their wearable devices.

    TripCase users wearing these smart devices will receive real-time flight alerts, gate changes and other travel information conveniently on their wrists at a time when minute counts. This initial integration lays the ground work for more advanced TripCase services to be accessible on wearable technology in the future. TripCase is on pace to manage more than 25 million trips in 2014.

    “As the adoption of wearable technology grows, we want to ensure that the travel industry is ready to leverage this technology and serve travelers on the device they prefer,” said John Samuel, senior vice president of Sabre Travelers Solutions. “Wearable technology is fast becoming a prominent means of customer notification and communication. We’re looking to take it even further – from a one-way means of communications to an interactive, on-the-go service experience,” said Samuel.

    Sabre recently showcased its Google Glass prototype travel app at the World Travel Market in London. The app can find a flight based on a user’s simple voice command, for example: “Ok Glass, Find a Flight from London Heathrow to Miami in June.”

    “Wearable technologies – such as smartwatches and heads-up devices like Google Glass – will forever change the way consumers experience travel – from shopping via virtual reality to voice command recommendation,” continued Samuel. “Creating these full service experiences require not just smart devices but also more precise location services and smart recommendation services.”

    Sabre Labs, the technology incubator and research lab at Sabre, continues to explore the application of geo-location technologies and their application to wearable devices in the travel experience. Understanding a traveler’s precise indoor location and developing services that use that context to share information and interactions on wearables will be a critical piece in creating a more intuitive experience for travelers.

  • Buy2Greece.com – Sunny Greece offers three-generation visa for HK$2.4m

    Tired of your shoebox in Tin Shui Wai? Here is a chance to upgrade to a plush home in Athens.

    Under a new initiative by the Greek government to attract foreign capital and kick-start the beleaguered economy, starting from January next year a property investment of just €250,000 (HK$2.4 million) in the European country will come with residence visas for the applicant, children (aged 25 or below), parents and even in-laws.

    According to Greek property listings, HK$2.4 million can buy more than 900 square feet of apartment space in Athens, compared with a 400 sq ft cage somewhere in the New Territories.

    To sweeten the deal, Greece has more than 300 days a year of glorious sunshine, bucolic landscapes, and world-class coffee for €1& a cup, down from €4.50 before its economy collapsed.

    Athens even has three decent Chinese restaurants, says Stephanos Issaias, the chief executive of Enterprise Greece, a government bureau tasked with promoting the country.

    Called the three-generation visa, the programme is the latest sales tool from a Mediterranean government desperate for overseas capital and talent to support a struggling economy. Under the current emigration law, parents are excluded.

    In Greece’s case, 29 per cent of its gross domestic product has been wiped out over 27 quarters of economic shrinkage that has driven national unemployment levels up to 28 per cent.

    In Hong Kong as part of a China-wide tour to meet immigration agents and investors, Issaias said Greece had cut back on bureaucracy, imposed budget discipline, introduced electronic tax filings and begun to dismantle protectionist regulations. “Greece has moved from red tape to red carpet,” he said.

    Chinese corporate investors have already snapped up sections of Piraeus harbour and are now eyeing the country’s airports, railways and energy sector amid plans for a cash-raising privatisation programme.

    “We are a developed country with developing-country returns,” said Issaias.

    Hopeful for the future, he pointed to EU data that forecasts 0.6 per cent growth for Greece this year, 2.9 per cent next year and 3.7 per cent for 2016.

    Chinese nationals were the second-largest group after the Russians to take up residency visas under laws that extend to living rights to the property buyer,spouse and children. In the past four months, Greece has welcomed 456 immigration investors, 119 from China.

    Greece, Spain, Portugal, Malta and Cyprus are all heavily marketing similar schemes to wealthy Asians with money to splash and one eye on the attractions of a European bolt-hole.

    In Greece’s case, the visa is purely for residential purposes. Spend a minimum 180 days a year for seven years in the country, attend a local school for six years and pass a citizenship test in Greek, and you become a full European Union citizen.

    Property prices and rents in Greece have dropped 40 per cent since their peak and labour costs are down 23 per cent amid a continent-wide downturn.

  • Buy2Greece.com – Beaches in Athens. Greece which is unknown to foreigners

    Spending nice vacations is possible not only in Crete or Rhodes, but in Athens as well, with its cheap real estate and beaches that are next door to. But buying a more expensive home, gives already a residence permit allowing access to European round trips, Greek medicine and education. Panagiotis Petrakos, Real estate agent at Riginos Real Estate (Greece) tells to the ee24.com readers about all this issues. – It is known that the Russians prefer the sea. Is it difficult for Athens to compete with resorts offering beach vacation? – Athens may be different. For example, accommodation in a densely populated urbanized center has some certain advantages. But there are suburbs, nestled in a picturesque location near the beach and if you buy a property there, the level of your life will be much higher. Athens is not as popular among Russians as islands or resorts are, because only a few people are aware that there are beaches in Athens! Just in half an hour from the city center. If you have a house in a suburb of Athens, say, in Voula or Vouliagmeni, which are 15 km away from the center, you can walk to the sea. – Who are the foreigners dominating at the Athens housing market? – Athens as one of the oldest and most interesting cities in the world is popular among residents of different countries. Customers come from both, outside the EU – from Russia, China and also from Europe. – What current offers do you have, what are the prices? Is it possible to buy a new property in the heart of Athens, or at best, one has to be content with a renovated housing? – Athens, of course is the ancient city and housing in the secondary market is more widespread there. But sometimes you can find new high-quality property. Of course, if you have a realtor who will “monitor” the situation and respond quickly. As for the prices, its range is truly great, starting from €100,000 (if we talk about liquid housing, of course), but the average price tag of what we sell is €250,000-300,000. Most of the proposals are formed by houses and apartments with an area from 60-80 up to 200-250 sq.m, including the primary market. – How do you feel about the program of issuing the residence permit to buyers purchasing luxury real estate in Greece? – The advantage is that the residence permit holder may travel to other Schengen states for up to 90 days within any six month period and also have an access to health and education services. The residence permit is not provided with a labor permit, except for the executive directors and shareholders who may be engaged in economic activities in the country. I believe that having made this decision, the Greek government has earmarked a friendly attitude towards those who want to buy a home. I think that this measure has a positive impact on both the real estate market in Greece, and potential buyers as well. In general, it is advantageous for all. – And why do you think Greece has made such a step and has accepted the “golden visa”? Is it because of the crisis? – I do not think that the law allowing foreign investors to obtain a residence permit (or else a golden visa as is widely used) was adopted just because of the crisis. We strive to create a favorable investment environment of an open economy attractive for foreign capitals. – Have you ever faced with cases of buying the property and applying for a residence permit? How much time it takes – weeks or months maybe? – Yes, we had such clients and the demand for Greek residence permit exists. The procedure takes few months, but you get a legal basis to remain in the country during all this time. Interview: Kyrill Ozerov, ee24.com

    Read more on ee24.com: http://ee24.com/expert/greece/beaches-athens-greece-which-unknown-foreigners/

  • Buy2Greece.com – Luxembourg tax deals weigh on Juncker

    More than 300 companies, including PepsiCo Inc, AIG Inc and Deutsche Bank AG, secured secret deals from Luxembourg to slash their tax bills, the International Consortium of Investigative Journalists (ICIJ) reported, quoting leaked documents. Commission President Jean-Claude Juncker, a former prime minister of Luxembourg, was asked yesterday (5 November) to comment.

    The companies appear to have channeled hundreds of billions of dollars through Luxembourg and saved billions of dollars in taxes, the group of investigative journalists said, based on a review of nearly 28,000 pages of confidential documents.

    The leaked documents reviewed by ICIJ journalists include hundreds of private tax rulings – known as comfort letters – that Luxembourg provides to corporations seeking favorable tax treatment.

    Luxembourg officials denied any “sweetheart deals” in its tax system.

    “The Luxembourg system of taxation is competitive – there is nothing unfair or unethical about it,” ICIJ quoted Nicolas Mackel, chief executive of Luxembourg for Finance, as saying in an interview.

    Pepsi, AIG and Deutsche Bank were not immediately available for comment.

    EU state aid regulators are investigating Amazon’s tax deals with Luxembourg, saying the arrangements could have underestimated the US online retailer’s profits and given it an unfair advantage, Reuters reported in October.

    In October, the European Commission opened an inquiry over whether EU law has been broken by the tax deals in Luxembourg.

    Commission President, Jean-Claude Juncker, who was Prime Minister of Luxembourg from 1995 to 2013, was asked yesterday (5 November) if there wasn’t a conflict of interest since he took over as chief of the EU executive.

    Juncker avoids commenting on Luxembourg tax deals

    Juncker said that such a question deserved a long answer, but that in any case, the Commission was perfectly in its right to investigate, and that he would not interfere in the work of the Commissioner in charge of competition, Margrethe Vestager.

    “I wouldn’t do it, because that would not be decent. I have my idea about the issue, but I will keep it to myself,” he said.

  • Buy2Greece.com – Crowdfunding: the new darling of real estate equity funding

    Crowdfunding, or the use of raising equity or debt through online portals and social network contacts instead of through the regular medium of investment banks, partnerships and financial institutions, has grown much more significantly in 2014 than even its early supporters would have expected. Crowdfunding got its start on sites such as Kickstarter, which allowed inventors and artists to post an idea or project and allowed benefactors to fund them. No promises were made yet often the “investors or benefactors” received a product or service once available. This lack of a promised return opened up a sliver of a door crack in the highly regulated securities world.

    The concept has now carried over to real estate, where the loosening of the laws defining how funds and private companies solicit investors in 2013 through changes to the US based Jumpstart Our Businesses (JOBS Act) has allowed crowdfunding to soar as a viable alternative to banks, traditional partnerships and institutional cash. New portals emerge monthly seeking some of the market share for serving this new way of funding enterprises. The websites allow potential investors can learn about and invest in a any scale real estate project from micro deals to the revitalization of a whole neighborhood. See for example, CityShares LLC’s Neighborhood Investment Fund which will invest in a basket of residential and mixed use properties in Brooklyn’s up and coming Bedford-Stuyvesant neighborhood. Although the portion of the JOBS act defining how funds can be raised through “nonaccredited investors,” or those incomes less than $200k per year or net worth less than $1MM have yet to be set, dozens of portals have already launched crowdfunding opportunities with as low as a $100 minimum investment.

    Crowdnetic, a provider of technology and market data solutions to the global crowdfunding marketplace, found that from October 31, 2013 to May 31, 2014, the number of total crowdfunding portals or funds grew by 336.4% (Rand, 32). According to Nav Athwal, cofounder and CEO of RealtyShares, “Over the last year, crowdfunding for real estate platforms has been responsible for raising over $100 million for hundreds of real estate properties across the U.S.”

    The funds work by creating a limited liability company for each property or project, through which investors can commit to funding a project once they have researched and completed internal due diligence. When sufficient commitments are reached the funding is required. Investors receive returns but with few promises, aside from revealing track records of prior investment returns from the same sponsor. Thus, the track record is key and it takes time to be able to pull down a larger funding, but some funds expect to soon approach $100 million via crowdfunding.

    In addition to allowing those without significant means to become investors in a project, crowdfunding can also be used as a metric to show that there is community support for a specific project which may be valuable to getting regulatory approvals and permits, and arguing that any profits from a project will go to local pockets. The nature of real estate: tangible, regulated, and well defined by data, make it more compatible with crowdfunding than other type of venture or investments such as software development.

    Currently, most portals are independent of specific properties or projects; that is, a developer would come to a portal and sign their project up funding through that specific portal. Fees tend to run 5% to 10% of funds raised plus legal costs for documentation, but this is rather modest compared to typical investment banking costs for start ups and smaller funds. Portals which opened just 2 years ago expecting to be working with 100 developers in a year have far surpassed their goals.

    In the future some investment sponsors, developers and building owners may try and become portals themselves to gain direct funding for their projects. We will see a shake out in this industry in terms of portals and probably a few that will be more successful for real estate, but for now it is the wild west and every portal is out to be the last one standing. Industry insiders see the key challenge to crowdfunding’s growth as being the potential for a “bad apple” to tarnish the industry’s reputation. They believe this can be minimized through utilizing education, promotion, and public awareness. Transparency seems to be key to credibility and delivering on what is promised. Specialization by size and geography and property type will surely follow if crowdfunding continues to become a new favored form of capital raising.

    Co-written by Brian Sanger, MSRE University of San Diego and Dr. Norm Miller, University of San Diego