From risks to opportunities

Author(s)
Verena Schweder, Andreas Mladenow, Christine Strauss
Abstract

Real Estate Equity Crowdfunding (REECF) enables small investments on big real estate projects through the funding by an online crowd. As there is only limited research on this novel type of financial instrument for the real estate sector, this paper investigates risks and opportunities of REECF in order to establish and improve the understanding of REECF, in particular to identify potential risks and potential opportunities that come along with an engagement in such projects. Based on traditional offline risks of capital investments, three categories of both potential risks and opportunities have been identified: market risks and opportunities, execution risks and opportunities, and agency risks and opportunities. We adopt a holistic approach, as we identified, collected and consolidated existing risks and opportunities in REECF. As a result, we introduce an up-to-date framework on real estate equity crowdfunding.

Organisation(s)
Department of Marketing and International Business
Pages
444-454
No. of pages
11
DOI
https://doi.org/10.1007/978-3-030-59003-1_30
Publication date
09-2020
Peer reviewed
Yes
Austrian Fields of Science 2012
502036 Risk management, 502052 Business administration, 502050 Business informatics
Keywords
ASJC Scopus subject areas
Theoretical Computer Science, Computer Science(all)
Portal url
https://ucrisportal.univie.ac.at/en/publications/from-risks-to-opportunities(1c26804c-c62c-499e-bd72-d8fced77d664).html