I wish to understand if crowdfunding in real estate is legally permissible in India? Many startups have come up in USA which are providing a platform for retail investors to invest in properties on per sq ft basis (Fundrise.com, Groundfloor.us, Crowdbaron.com to name a few).
This is how it works: 1) Developer wants to raise funds. Typically he goes to High-net Worth Investors, Banks for loans etc. Instead he lists his properties online and sell it on a per sq ft basis. 2) Normal people can buy property on per sq ft basis (They don't own the property physically, but just the equity/shares in the project). 3) Later they can sell it on profit.
Smartowner.com is trying to do this, but their model is not very clear to me.