How to Start Real Estate Equity Crowdfunding: Invest in Property from Just €300
Learn the basics of real estate crowdfunding, key risks to avoid, and how to earn returns—even on a small budget
Welcome to a new issue of the Unlocking Real Estate Value newsletter. Each week I will provide you with exclusive advice and professional insights to help you realise long-term value through real estate development.
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Have you always wanted to invest in real estate but felt priced out of the market? Real estate equity crowdfunding is changing the game, allowing everyday investors to own stakes in property developments with minimal capital.
In this newsletter, we'll explain how this simple but powerful investment model works, including:
How Crowdfunding is Opening the Real Estate Market to Everyone
The Risks You Must Know Before Investing
Realistic Returns: What to Expect from Your Investment
By the end, you'll have the knowledge to start building your property portfolio—even with just a few hundred euros.
Let’s dive in.
1. How Crowdfunding is Opening the Real Estate Market to Everyone
Ever wonder how regular people can invest in big real estate projects without needing a fortune? For years, property investment was only for the wealthy. High entry costs kept average earners out.
But something big has changed. Real estate crowdfunding platforms now let people invest with just a few hundred euros. This opens the door to a new kind of investor.
Instead of putting all your money into one building, you can spread it across different properties in cities like Milan, Rome, and Florence. You own small pieces of big developments—something that was once only for banks or wealthy funds.
Many platforms also offer educational resources, FAQs, and walkthroughs to help beginners understand how the process works. Some even allow you to follow experienced investors or view ratings on projects based on crowd sentiment.
Real estate crowdfunding has gained traction globally, and in Italy, it's on the rise thanks to platforms like Recrowd, Walliance, Trusters, Concrete. These services are regulated and often list details such as the project timeline, developer credentials, expected returns, and potential risks.
To get started:
Research platforms that operate in your country and check if they are regulated
Begin with €300–500 across 2–3 projects to lower your risk
Choose platforms with strong project details and background checks on developers
Know that real estate is a long-term game, so be patient with returns
2. The Risks You Must Know Before Investing
Is real estate crowdfunding as safe as it sounds? Not always. While it sounds exciting, there are risks that aren't always clear at first.
One big risk is losing all your money if a project fails. Also, once you invest, your money is often locked up for 3–5 years. You can't just sell and get it back. This lack of liquidity is a major difference from stocks or bonds.
You're also last in line to get paid if something goes wrong. Delays and budget issues are common in construction, and they can affect your returns.
Also, platforms are not all created equal. Some may have looser vetting standards or less experience managing defaults. Always look into how the platform itself earns money—do they charge upfront fees, or only take a cut after the project performs?
To protect yourself:
Check the platform’s history and look for past project results and any defaults
Look into the developers—do they have successful projects in the past?
Read financial estimates carefully. Are they realistic?
Don’t invest money you might need soon
Spread your money across different projects to lower your risk
Avoid platforms that don’t disclose financials, developer background, or track record
3. Realistic Returns: What to Expect from Your Investment
How much money can you really make from equity crowdfunding? Some platforms promise big profits, but those numbers are often best-case scenarios.
Gross returns might be 10–15% on development projects. But after taxes, fees, and delays, the actual number is lower. You should expect a net return in the 6–10% range after accounting for platform fees and a 26% capital gains tax in Italy.
Returns also vary based on project type. Debt-based crowdfunding (where you act more like a lender) typically offers lower but more predictable returns. Equity-based crowdfunding offers a share of profits but carries more uncertainty. You may not see returns until the property is completed and sold.
In addition, remember that market conditions can affect performance. Rising interest rates, inflation, or a drop in property values can all impact your returns. The developer’s ability to manage costs and timelines is equally crucial.
To set smart expectations:
Don’t just look at the top-line returns. Look at the costs too
Figure out your net returns after taxes and fees
Choose platforms that show how past projects really performed
Mix high-risk, high-return deals with safer ones
Only invest what you can afford to lose
Your First Steps into Property Investing Start Today
Real estate equity crowdfunding makes it possible to invest in property—even with a small budget.
Here’s a quick recap:
Start with €300–500, spread across a few different projects.
Do your homework—research platforms and developer history.
Plan for real returns, not just what platforms advertise.
Think long term—real estate isn’t a quick win, but it can be a solid part of your portfolio over time.
The more effort you put into research and understanding the platform and project details, the more confident and successful you’ll feel as a new investor. Crowdfunding won’t make you rich overnight, but it offers an exciting way to grow wealth through diversification and smart risk management.
That’s all for today.
See you next week!
— Carlo
Founder and Managing Director Benigni
Weekly Resource List:
The Ultimate Guide to Real Estate Crowdfunding – GowerCrowd (11 min)
A comprehensive guide that breaks down the fundamentals of real estate crowdfunding, covering key benefits, risks, and actionable steps to start investing even on a limited budget.
Invest Through Equity Crowdfunding: Risks and Rewards – Investopedia (8 min)
An in-depth article that explores the pros and cons of equity crowdfunding investments, highlighting essential factors and risk management strategies for novice investors.
Real Estate Crowdfunding 101: Everything You Need to Know – Crowdbase (15 min)
An extensive overview of the real estate crowdfunding landscape, detailing investment types, due diligence tips, and strategies to optimize returns from small-scale investments.
Real Estate Crowdfunding: Everything You Need to Know Before Investing in 2023 – Properstar (10 min)
A timely article providing insights into current trends, advantages, and potential pitfalls of real estate crowdfunding, with practical advice for investors starting with minimal capital.
Related Articles:
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This post is sponsored by Benigni a specialist development manager working with international investors to realise long-term value through optimised development strategies. To learn more click this link to our website.
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