The founders of Max Property Group have been in the real estate business for a long time. They decided in 2015 to start structuring property funds with a relatively low minimum entry. Max Property Group set up two funds in the Netherlands, one in Germany and one in the UK. They soon realized that dealing with a large number of investors is time-consuming and inefficient.
In 2018, Erwin van Kekem set up Max Crowdfund and automated the entire real estate investment process. From listing projects to investing in the opportunities to providing monthly, quarterly and annual statements for the tax authorities. The goal of the founders has always been to make real estate investments accessible to everyone worldwide.
According to Mark Lloyd, the crowdfunding market in the Benelux region is starting to become more mainstream. He believes that the worldwide growth potential is immense.
Max Crowdfund is only allowed to offer debt-based real estate-backed loans, but in the future, when MCF obtain the license following the new European regulation for crowdfunding platforms, they will add equity-based loans. Since the Dutch Financial Authorities’ approval in July of 2020, the platform is live, and the first project was placed in October. The approval of the AFM is, according to Mark Lloyd, the biggest success of Max Crowdfund.
Max Crowdfund has raised just over €1.7M. The funded projects consist of project development, buy-to-let and buy-to-sell. The investors receive an average return of 7.92% per annum.
“Our next big challenge is to obtain the EU license and receive banking facilities in all the jurisdictions we are expanding to,” says Mark Lloyd.
Max Crowdfund has embarked on an aggressive expansion program via joint ventures. That’s why they are already expanding to New Zealand and Sweden. By the end of 2021, Max Crowdfund is hoping to launch in an additional 5-10 jurisdictions.
Mark Lloyd thinks that the real estate crowdfunding market will become more mainstream, and he expects to see more cross-border investment.
Written by: Julia van der Kooij