P

R
This ebook is created by Ethis, an award winning
pioneer in Ethical Property Crowdfunding.
E
With our unique experience in bringing the world to F
invest in affordable housing Indonesia, we wish to
further spread the beauty of impact Investing through
Property Crowdfunding.
A
C
E
CONTENT

Chapter 1
04
Definition of crowdfunding

Chapter 2
07
Four types of crowdfunding

Chapter 3
10
Property Crowdfunding

Chapter 4
14
Property Crowdfunding: Ethical
Investment through Property
Crowdfunding - Circulating Good,
Making Money, Having Social Impact
 CHAPTER 1

DEFINITION OF
CROWDFUNDING
 CHAPTER 1
DEFINITION OF CROWDFUNDING

What is crowdfunding?

The gathering of many people online to financially support a cause,

business or individual. Each person gives a fractional (small or large)
amount towards a targeted total.

““Crowdfunding is the practice of funding a project or venture by raising

monetary contributions from a large number of people, typically via the
Internet.” [Oxford dictionary]
“

Source: https://www.techlicious.com
 CHAPTER 1
DEFINITION OF CROWDFUNDING

“
“Crowdfunding is a new tool for raising money for businesses and an easier
way to access such ventures for investors. It utilizes social media outlets
like Facebook, Twitter and LinkedIn to reach an audience of potential
investors. The idea behind crowdfunding is that many people are willing to
invest a small amount, and when they do, large sums of money can be “
raised quite quickly. It opens doors for businesses to investors they could
never reach otherwise.” [Investopedia]

What campaigns can be crowdfunded?

Anything that requires funding can be crowdfunded, either for profit or
non-profit.
In the early stages of crowdfunding,
the campaigns that were being
funded through platforms were
typically business ventures.

Later on, as crowdfunding gained

rapid popularity, it started to be
channeled for funding a wide
variety of campaigns across the
world ranging from
micro-businesses to property
developers to entrepreneurs
seeking capital for their endeavors
like producing a new book, new
inventions or launching a new bag
line.
 CHAPTER 2

FOUR TYPES OF
CROWDFUNDING
 CHAPTER 2
FOUR TYPES OF CROWDFUNDING

Crowdfunding is of 4 types. The figure below will allow you to get a glimpse
of the different types.

Reward Donation CROWDFUNDING

$US 6,923.6m
Debt Equity TRANSACTION VALUE 2019

Reward based:
Members of the crowd may contribute a portion starting from $1 to the
maximum about required. And in return they are rewarded with the product
of the campaign or a form of recognition that acknowledges their generous
contribution.
For instance, the campaign owner sends you a gift with the product of the
crowdfunded campaign.

Donation Based:
This type of crowdfunding involves
pooling of funds from the crowd to
aid a cause, individual or an $US 100,000+
organization. As the name of type TOTAL CHARITY
suggests, a return is not expected CROWDFUNDED VIA
from the recipient. GLOBAL SADAQAH
Example: Global Sadaqah
 CHAPTER 2
FOUR TYPES OF CROWDFUNDING

Debt Based:
The crowd lends money to an CROWDINVESTING
organization or the campaign who
initiates the campaign with the aim of $US 4,794.9m
returning the borrowed fund with TRANSACTION VALUE 2019
additional return in the form of
interest (tsk tsk).

Equity Based :
Investors in equity based campaigns receive shares in the contributed project
or company. Which makes them part owners of the campaigns.
Example: Ethis Equity
 CHAPTER 3

PROPERTY
CROWDFUNDING
 CHAPTER 3
PROPERTY CROWDFUNDING

Now that you are familiar with the different types of crowdfunding, let’s get
you familiar with the world of property crowdfunding.

Property Crowdfunding entails facilitating the development of the property

through crowdfunding. We know what you are thinking, “you basically said
the same thing”.
Right! It is self explanatory.

Before going into crowdfunding aspect of property investment, let us inform

you on why you as an investor should consider this. Properties usually have
to trend of appreciating in value in contrast to other assets.

The figure above by IMF shows the steady growth of the housing market
over the course of last 18 years.

Okay we will cut to the good part about it. You get to kick off your journey in
property investment through a platform as you first step. Why? Well, it allows
you to invest a relatively less amount and gives you an opportunity to learn
how and what the investment process of this lucrative industry holds for
you. Crowdfunding will allow you to get in tune with the housing market
easily.
 CHAPTER 3
PROPERTY CROWDFUNDING

Property crowdfunding falls under 2 categories, depending on the

preference of the platform owners:
1. Debt Based Crowdfunding, 2. Equity Based Crowdfunding

or also known as P2P in Malaysia. In this scenario, the investor is a

Borrowers, which is the developers shareholder in a specific property,
create campaigns through and their stake is proportionate to
real-estate crowdfunding platform to the amount they have invested.
fulfill their financial needs in Returns are realized in the form of a
developing properties. Lenders, share of the rental income the
which is the investors contribute property generates, less any service
towards the goal for an fees paid to the crowdfunding
interest/profit. When the properties platform. Investors may also be paid
have been sold, investors will out a share of any appreciation
receive their money back with value if the property is sold.
interest (or profit for Islamic
Platform).

Islamic Crowdfunding Platforms

operates within the guidelines of
Shariah. Which entails utilisation of
Islamic Contracts in P2P setting and
returning the capital along with a
share of profit to the investors. This
sharing of profit is usually based on
a predetermined ratio between the
investor and the campaign owner.
 CHAPTER 3
PROPERTY CROWDFUNDING

In the past, real estate development was only available for investment
through private equity in the development company or through real estate
investment trusts (REITs). It was not feasible as a direct investment for most
individuals. Furthermore, real estate developers were not allowed to
actively market or solicit investments for their campaigns.

As the concept of crowdfunding was growing, real estate development has

opened the door for more direct marketing and solicitation to accredited
investors. Now, real estate developers can rely on crowdfunding sites to
solicit investments from high-net-worth investors who are eager to make an
investment in this market.

The regulators in some countries are reviewing material in an attempt to

open this market up to all investors, but for now, crowdfunding sites must
classify each investor to ensure they qualify to make private investments in
real estate in this manner. It is the hope that the online investment market
for real estate will flourish in the coming years, giving investors a great
alternative.
 CHAPTER 4

ETHICAL INVESTMENT
THROUGH PROPERTY
CROWDFUNDING
 CHAPTER 4
ETHICAL INVESTMENT THROUGH
PROPERTY CROWDFUNDING

We at Ethis are proud to claim that

we provide a platform that facilitates
you to make money, have social
impact & circulate good.
Making money is something
everyone looks an opportunity. How
does Ethis assist in that? Glad you
asked. The projected returns of all
the campaigns onboarded are
competitive that allows you as an
investor to get a healthy amount of
return in the given period which
usually extends up to a year.

Having social impact is a crucial

element everyone should attempt to
have. Through your participation in
the campaigns, you ensure
construction of subsidized and
affordable housing in Indonesia that
gives a chance to the low earning
individuals to secure a home.
Once the housing is assured for
these people, you as an individual
are circulating good!
That’s right, helping your brethren
securing a house is definitely one
way to be part of circulating good.
 CHAPTER 4
ETHICAL INVESTMENT THROUGH
PROPERTY CROWDFUNDING

All of these are achieved through an investment opportunity that is Ethical in

all possible ways. One of the ways is by ensuring the investments made
through Ethis have a social return on them. The end buyers of the
campaigns facilitated get to be owners of their own house which increases
their wealth. It also assists in their overall wellbeing both physically and
mentally as the security of being a homeowner and increased wealth
reduces stress tremendously. CLICK HERE to check out our Social Return on
Investment (SROI) to know more.
support@ethis.co

www.p2p.ethis.co

+6582502854

@ethis.co