Raizers platform review.
Over the past decade, the French real estate market has experienced remarkable growth. So, if you're considering investing in French, Belgian, or Swiss real estate, Raizers is a platform worth exploring. In this article, we will discuss the major strengths and weaknesses of the Raizers platform, provide guidance on getting started, and outline what you can anticipate when investing through the platform. Let's delve into the details!
What is Raizers?
Raizers is a reputable real estate crowdfunding platform that provides individuals and professionals with access to various real estate investment opportunities across France, Switzerland, Belgium, and Luxembourg. With its establishment in 2014, Raizers has built a strong track record in the industry.
Investors on the Raizers platform have the opportunity to finance development projects for new properties or renovations of existing properties. The aim of these projects is to generate profits through property sales. Upon completion of the project, typically within 18 to 24 months, investors receive their principal investment along with accrued interest.
One notable aspect of Raizers is its offering of real estate projects in France and neighboring countries, which provides investors with the opportunity to diversify their portfolios within the real estate crowdfunding space.
How does Raizers work?
Raizers offers a global investment opportunity in western European properties, allowing investors from around the world to build a diversified real estate portfolio. To ensure the quality of investment projects, Raizers has a dedicated team of analysts and real estate experts who conduct extensive due diligence on the properties, owners, and developers involved.
Operating on a crowdfunding model, Raizers aim to facilitate direct connections between borrowers and lenders, eliminating intermediaries. The process begins with Raizers actively scouting the market and identifying financially stable property developers seeking loans for specific real estate development projects.
Once a potential borrower is identified, Raizers performs a comprehensive audit of the company, thoroughly evaluating its economic, legal, technical, and other relevant aspects. If the project demonstrates coherency and advantages, Raizers proceed to accept the project.
Subsequently, the borrower issues dividend-paying bonds through a loan agreement, which Raizers presents on its website as an investment project to its pool of investors. This allows investors to participate in the project and potentially earn returns through dividend payments.
Who regulates Raizers?
Raizers operates within a highly regulated environment in the French market for alternative investment platforms. The platform holds a license as a crowdfunding adviser issued by the national association ORIAS (L'Organisme pour le registre unique des intermédiaires en assurance, banque et finance), which is under the supervision of the French Financial Markets Authority (AMF).
Additionally, Raizers is licensed to operate in Belgium as an Alternative Financing Platform, authorized by the Belgian Financial Markets Authority (PFA). These licenses demonstrate Raizers' compliance with regulatory requirements and its commitment to maintaining a transparent and trustworthy investment platform.
Investing on Raizers platform
Getting started with Raizers and initiating your investment journey on the platform is a simple and efficient process. Opening an account can be completed in just a few minutes. You have the option to sign up using your email address and name, or you can conveniently register through your LinkedIn profile. Raizers caters to both individual investors and companies, allowing you to choose the appropriate registration method.
The initial sign-up requires basic information such as your name, email, and password. Once registered, you can provide additional details like your nationality, date of birth, zip code, and tax residence to complete your profile. This information is necessary for identity verification purposes.
Individual investors will be required to submit their government-issued ID card, proof of address, and property survey. For legal entities, Raizers will request documents such as the commercial register, articles of association, shareholder's declaration, and identity card of the company's legal representative. Once you have provided the relevant information, your account will undergo the verification process, after which you can proceed to transfer funds.
Once you have transferred funds to your Raizers account, you can begin investing. Since investment opportunities tend to fill up quickly, subscribing to the newsletter ensures that you receive a notification at least 24 hours before a new project is launched. Investors are provided with comprehensive operational details of each project, allowing them to make informed investment decisions.
By following these straightforward steps, you can set up your Raizers account, complete the necessary verification process, transfer funds, and start exploring and investing in available projects.
What return can you expect on Raizers?
The potential returns on Raizers vary depending on the specific projects in which you choose to invest. On average, investors can expect annual returns of up to 10%. This places Raizers in the higher range compared to similar platforms in Western Europe, where projects typically offer an average return of around 8%.
Is it safe to invest on Raizers?
Ensuring the safety of investors' funds is a crucial concern when engaging with a real estate crowdfunding platform. At Raizers, this concern is addressed through several measures. Firstly, all projects featured on the platform are supported by mortgages, which provide an additional layer of security. Additionally, the borrowers responsible for the projects also offer personal guarantees, further bolstering the assurance of investment safety. These safeguards aim to instill confidence in investors that their deposited funds are well-protected and aligned with the projects they choose to invest in on Raizers.
Although Raizers lack a secondary market feature, which allows for early liquidation of investments, it's worth considering the investment duration when assessing the significance of this limitation. Given that the investment terms on Raizers typically range from 18 to 24 months, the absence of a secondary market may be less of a concern, as it aligns with the relatively longer-term nature of the investments. However, it is important to approach real estate crowdfunding platforms with a long-term perspective and allocate funds that are not expected to be needed in the short term. This ensures that investors can maximize the potential returns and mitigate the impact of the absence of a secondary market.
At present, Raizers does not offer an automatic investment function on their platform. However, considering the relatively smaller number of new projects available compared to P2P lending platforms, manual investment on Raizers can be a convenient option. Investors have the opportunity to review and select projects individually, ensuring a more hands-on approach to their investment strategy. While an automatic investment feature may streamline the process, the ability to invest manually allows for greater control and careful consideration of each investment opportunity on Raizers.
Established in 2014, Raizers has emerged as a prominent platform in the European real estate investment landscape. The platform is subject to regulation by reputable financial authorities, ensuring a secure investment environment. With the potential for annual returns reaching up to 10%, Raizers offers an attractive opportunity to investors seeking exposure to the real estate markets of France, Belgium, and Switzerland. Whether you are a novice investor or an experienced professional, Raizers provides a solid choice for exploring and engaging in real estate investment ventures.
- Reliable and regulated platform: Raizers is a trustworthy and regulated real estate crowdfunding platform, ensuring a secure investment environment.
- Secure investments: the majority of projects available for financing on Raizers are backed by first-line mortgages, providing an additional layer of security for investors.
- Diversified investment opportunities: Raizers offers the opportunity to invest in real estate projects across France, Belgium, and Switzerland, allowing investors to diversify their portfolio within a single platform.
Points to consider:
- Lack of secondary market: Raizers do not provide a secondary market, limiting the liquidity of investments and making it difficult to sell or exit investments before the completion of the project term.
- Minimum investment requirement: the minimum investment of €1000 may be relatively high for some investors, potentially limiting accessibility for those with smaller investment budgets.
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