Estate Baron was founded with the simple idea that anyone, not just the wealthy few, should have the ability to invest in property development and take advantage of this great asset class without the need for large amounts of money.
After working for a decade with various investment banks across US and Australia, our founders came to the conclusion that the financial markets are rigged in favour of the brokers and the fund managers. The best deals are open only to the insiders and the small guys only get the scraps. And whether the market went up or down, whether or not the investors made money, the fund managers always made money. Through layers and layers of exotic derivatives and funds, investors often seem to be completely at a loss of where their money is going.
And in property this becomes even more problematic as it typically requires large sums of money to get started leaving the small guys in the dust.
We believe that this model is broken and completely unacceptable. Investors should be able to choose exactly which project their money goes to and everybody should have the opportunity to invest in high quality deals.
The advent of the internet and change of regulations in the US and UK made property crowdfunding possible. This allows many small investors to be sourced online. Property crowdfunding can be thought of as very similar to Syndicates but on a much larger scale. Under our model in Australia, investors invest in a Registered Managed Investment Scheme structured in such a way that allows them to choose the specific project they want to invest in.
When we started on this journey, we quickly realised that the regulation in Australia around this is quite rigorous. However, we decided to take the time and effort to meet the necessary compliance obligations and are proud to say that we are the first and only Real Estate Equity Crowdfunding Platform in Australia that is open to all, including everyday people or Retail investors.
While we do a lot of diligence on the projects we list, there is always risk. You will find that we lay out all the risks very transparently and provide all relevant information in our PDS. We can only lay down the facts as they are, and it is then your responsibility to decide if this is the right decision for you, or in consultation with your own advisers.
After a project commences we will provide regular updates via email, photos and videos. We are also available via chat, email and also can meet you in person at our offices. After the project completes or as per the terms in the offer document you will receive your returns in your nominated bank accounts.
We have started on a journey to change the way finance works, to make it a bit more reasonable and give the little guy a fighting chance. We hope that you will join us.