Crowdinvesting in real estate: insights from zinsbaustein.de - Where does the cash come from?

By Sebastian Brandner | March 9th, 2017
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  • The growth of FinLeap’s venture zinsbaustein.de continues. Having successfully funded 6 real estate projects in the last 12 months with around 1.400 investors and a total funding of 7 million Euros, more projects are just about to be launched. Thereby, zinsbaustein.de proves to be an alternative investment opportunity in a low interest rate environment.

    The growing demand for small scale real estate investments is supported by the fact that the latest zinsbaustein.de project, a housing estate in Herzogenaurach, was completely funded with 800.000 Euros in no more than 19 hours.

    Now, zinsbaustein.de has published some insights into the actual crowd that has been investing on their platform so far.

    The average investor is 46 years old with the individual age ranging from 18 to 88 years. About 20% of the crowd are women. According to zinsbaustein.de’s data, crowdinvesting is especially popular in urban areas although many of the projects are located in rural regions. Hence, Berlin and Munich are leading the list of investors’ locations. However, some of the projects are to a large extent funded by investors from their respective regions, as it was for an office estate in Erlangen and an assisted living estate close to Nuremberg.

    For further insights on the cash flow between real estate project locations and investor locations in Germany check out the map below.

    crowdinvesting cash flow in real estate in Germany

    The crowd does not only consist of German investors. The venture’s projects also attract attention in foreign countries, resulting in investors from Spain, Australia and the United Arab Emirates. According to co-founder and Managing Director Frank Noé, these facts show that the crowd is actually very heterogeneous: not only in terms of origin and age but also in terms of social background. People can invest amounts from 500 Euros up to 10.000 Euros for a period of 12 to 18 months. The rate of return is at 5.25 % for all projects.

    Thus, zinsbaustein.de continues its way towards democratizing real estate investment by offering transparent small scale investment opportunities for a variety of people that make up the crowd.

    Sebastian Brandner