Real estate crowdfunding is the opportunity for individuals to easily invest in real estate projects and to receive a high return rate (8% gross yield/annual yield).
The investor (you) and the project developer (we) are the two parties.
The projects are renovating one or more properties in order to resell them. In order to do that, the project needs funds. So, it has three financing options:
- Equity capital
- Traditional bank loan
For the project leader, crowdfunding is therefore an alternative source of financing which may cost more than bank financing, but which is much more responsive to the project’s needs. For the investor, this is a way to invest in real estate and enjoy the excellent profits that can be made without having to worry about selecting the property, monitoring the work, or reselling the property.
HOW IS THE INVESTMENT GOING ?
- CHOOSE THE REAL ESTATE
The property is chosen by very specific criteria :
– Kind of real estate (houses, apartments, …)
– Access (Local transports, highways ,…)
The goal is to maximize the chances of resale with the best possible value.
As soon as the property is chosen and the offer is accepted, we sign a sales agreement and begin the financing stage.
- LAUNCH THE CROWDFUNDING CAMPAIGN
As soon as the sales agreement is signed and the working budget is finalized, we launch the crowdfunding. If you want, you will receive an email describing the project, and you can choose to invest the amount you want: between €5,000 and €100,000 for projects of less than €100,000, and between €100,000 and € 1,000,000 for larger real estate projects.
- LOAN AGREEMENT
Investments are the subject of a standardized loan agreement between the investor (you) and the project developer (us).
The companies we contract for the work are companies that work with us on all our other projects. Photos will be regularly posted on our blog, so you can follow the progress of the work throughout your investment.
The duration of the work depends on the project, and is part of the description email you’ll receive in the beginning, during the fundraising. On average, a complete renovation lasts about a year, and the entire project lasts about 18 months (including resale time).
- SALE OF THE PROPERTY
After completing the work, we put the property up for sale using our client base and real estate websites.
Once a potential buyer has signed a sales agreement, the deed is transferred (to finalized the purchase) within 4 months. This can of course be done sooner, depending on the buyer’s wishes.
- RETURN ON INVESTMENT
The duration of your investment will be on average between 12 months.
The 8% is calculated from the first day of your investment until the day of repayment. For example, if the project lasts 18 months, the gross return is 8%.
The investment is subject to certain risks. The investor runs the risk of partial or total loss of the invested capital and the risk of default or deferred payment of interest. As the investment instruments are not quoted, the investor may find it very difficult to sell his position to a third party should he wish to do so.
The investment consists of a loan subordinated to all current and future debts of the issuer. The investment is also exposed to all the risks associated with the various real estate projects of the issuer. We recommend that any investor read the prospectus before making an investment decision in order to fully understand the potential risks and rewards associated with the decision to invest in the standardized loans offered.
Information relating to each project, including the information note, can be found on the “projects” page.