The Real Estate Crowdfunding Platforms Recrowd and BuildAround Sign a Commercial Agreement

Recrowd, a leading real estate lending crowdfunding platform in Italy, has signed a strategic collaboration with BuildAround , one of the first real estate equity crowdfunding platforms to obtain authorization under the old Consob regulation in 2019.

Recrowd entered the market in 2019 and, to date, has raised over 136 million euros, while BuildAround had raised more than 3.2 million for 6 financed projects thanks to a base of over 180 investors and more than 1000 subscribers .

BuildAround has waived its right to request authorization under European regulation no. 2020/1503, while Recrowd obtained the license last November 30th. A situation that pushed the two platforms to agree to share experience and contacts in Italian real estate crowdfunding.

The partnership between Recrowd and BuildAround

Projects already financed in the past by BuildAround will be managed independently and separately from this agreement, which lays the foundations for an enrichment of the activities and operations hosted on the Recrowd platform.

Also thanks to this collaboration, and the continuous innovations proposed, the platform aims to make the tool increasingly known, while introducing additional protections compared to the regulatory requirements in force from the end of 2023.

This partnership offers a number of benefits. First of all, it will enrich the offer of projects available to investors, maintaining the focus on lending crowdfunding. Furthermore, the projects, proposed on Recrowd, will be subject to the new quality and delay prevention standards and to the new investor protection contracts ( see another Crowdfunding Buzz article here ).

Gianluca De Simone. Co founder and CEO of Recrowd, commented: “The BuildAround team did an excellent job in selecting real estate operators and related projects, reasons why we immediately found synergistic elements to create a valuable collaboration. Through this agreement we demonstrate, once again, our desire to increase our presence in the Italian market, as a point of reference for operators and investors who want to rely on the real estate crowdfunding tool.”

Granting of power of attorney by the investor

First and foremost, Recrowd will continue to provide free legal support to investors directly or through designated companies, albeit with a new contractual framework.

If until now, in fact, the contracts between beneficiary and investors were simple “peer-to-peer” agreements, now, when an investor opens a wallet on the Recrowd platform, he automatically grants a power of attorney to a debt collection company, allowing it, if necessary, to contact the proponent on behalf of all investors.

On the other hand, the proposer must provide either a promissory note or a debt recognition deed , of his choice, to the debt collection company indicated by Recrowd so that it has the tools to act as the legal representative of the investors.

To encourage the subscription of one of the two guarantees, when an operation presented on the Recrowd platform is financed, Recrowd holds the funds for four days until the proposer releases the bill of exchange or debt recognition to the debt collection company.

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(Featured image by satheeshsankaran via Pixabay)

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