Crowdfunding and peer-to-peer lending are similar concepts but with an important distinction.
Real estate crowdfunding is essentially equity funding – you own a share of the property being funded and a share of the profits it generates. It is usually a longer-term investment.
Peer-to-peer lending, on the other hand, is a debt-based form of investment. You lend money to another party to buy or develop a property and earn a flat rate interest. You are simply lending the money and do not own any of the asset in question, and investments tend to be for the short-term.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
