Why Real Estate Crowdfunding could be the next BIG thing

www.CoAssets.com South East Asia’s First Real Estate Crowdfunding Platform
Why Real Estate
Crowdfunding could be the
next BIG thing
Getty Goh
CEO & Co-Founder
1

www.CoAssets.com South East Asia’s First Real Estate Crowdfunding Platform2

Imagine...

$1,000,000
$500,000
Employment
Affordable Housing
Community Building
4

W.I.I.F.M.
(What’s.In.It.For.Me)

Attractive
ReturnsEmpowerment
Access to
Exclusive Deals
6

It is NO LONGER
just a concept
That was a genuine deal that happened in Apr
2014
7

25 Apr 2014: S$700,000 pledged in 1 hour
8

Brief Introduction – Background
• CEO & Co-Founder of CoAssets. We are South East
Asia’s First RE Crowdfunding platform
• CoAssets.com is funded by the Media Development
Authority (MDA) of Singapore under the iJam Reload
scheme
• Director of Ascendant Assets – a real estate think tank
• Education:
– Masters of Science (Real Estate) from National University of Singapore
– Bachelor of Science (Building) from National University of Singapore
9

CTO – Dr Seh Huan Kiat
• Received his PhD from MIT
• Received his Degree from Imperial
College
• Worked at Intel for 6 years
10

SMART Expo 2010
Steve Melhuish
PropertyGuru
Mhd Ismail
Propnex
11

Crowdfunding
vs.
Real Estate
Coinvesting
– what’s the
difference?

There are 2 main differences
19

The other difference?
20

Crowdfunding
in Asia – a
different
ballgame

Crowdfunding in Asia
• There is NO JOBS Act in Asia
• Crowdfunding sites that want to come to Singapore will have
to comply with:
– Company’s Act (Not more than 50 shareholders)
– Securities & Futures Act
– Estate Agent Act (specific to real estate transactions)
• Real estate investment is exempted from the Securities &
Futures Act
• How funds are raised comes under Securities & Futures Act
• US Firms keen to start in Singapore can consider adopting a
PE model
• So how do we do it…?
23

Get a Legal Opinion
24

Crowdfunding in Asia
• Unlike some of the crowdfunding websites,
CoAssets does NOT handle money
• CoAssets is a targeted leads generation site
– allow Opportunity Providers (i.e.
developers, funds, other RE crowdfunding
sites) and Funders to connect
• CoAssets’ niche:
– Helping Opportunity Providers access funds
between S$1million and S$5milllion
– Helping the mass affluent find viable opportunities
25

Isn’t Real
Estate
Crowdfunding
risky?

Isn’t it a matter of perspective?
27

What are the 3 main
risks/challenges
• The Singaporean “LAR”
• Legal – how to manage stakeholders
from different regions ?
• Accountability – will the project
materialize?
• Recourse – what happens if projects
fail?
30

So what do
we exactly
do?

We aggregate our users in 3 ways
32
Co-investCo-own Co-purchase

Why it works?
• Greater Disclosure – Opportunity Providers
can put their deals on the site and attach
relevant project details
• Greater Accountability – Funders can meet
the Opportunity Providers to view the relevant
documentations
• Greater Empowerment – Funders can do
property research before they proceed
33

How have we done?
34

We are the top 3 RE crowdfunding
site globally
35

The growth is encouraging
because…
36

What about Fundrise?
37

Value Added Service: Real Estate Research to
38
Singapore Research Tools
Penang Research Tools

Research Collaboration with A*Star –
Real Estate Online Sentiment Charts
39

Does this business model work?
40

CoAssets
and YOU

Help developers reach out and
aggregate funders
42
Established Developers
Private Landowners

Help funders who are looking for
opportunities
43
Man on the streets
Professional Investors

What does this mean to the
investors?
44
Your risks are lowered There is no “down
time” to growing your
money

Democratizing the funding process
45
You have greater say on which project to
support

CoAssets means Security and Connectivity
46
Security Connectivity

How do we achieve that?
47
Online Cross Border
Legal Contracts
Online Cross Border
Payment

Help to open new markets
48
Residential projects
Infrastructure

In the pipeline: Solar farm project in India
49

What do we want to be?
50
1. A market place 2. An online infrastructure

BUT

We are all here to
make dreams

How does
crowdfunding really
work?

Join us in our EPIC quest…
54

Why Real Estate Crowdfunding could be the next BIG thing

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Editor's Notes