The loan is granted to a company which owns only this real estate development project and has no debt related to another project.
Crowdlending consists in lending funds to a real estate developer in order to carry out a real estate development project.
The loan is granted to a company which owns only this real estate development project and has no debt related to another project.
The real estate developer reports the progress and cash flows of the project to Foxstone. We summarize this information and publishes it on your online dashboard for an easy consultation.
Foxstone makes sure the interests of the loan are paid quarterly to your bank account. These payments are accounted on your dashboard for an optimal monitoring of the performance of your investment.
At the maturity of the loan you receive your capital in return. If you want to resell your loan agreement before its maturity, you can put it on sale on our platform.
For crowdlending, Foxstone takes the following fees: 3% of the amount of the loan from the investor and 3% of the amount of the loan from the developer.
Each investor expressing an interest in an offer receives the investment file including:
And must fill, sign and return the following documents:
These documents are required by the mortgage provider and the notary.
The real estate developer supplies quarterly reports (according to the project) on the project’s progress with photos of the construction site. Foxstone synthesizes these reports and publishes them on the investor’s online dashboard for an easy consultation.
Enterprise contracts are generally preferred by Foxstone because they reduce the risk of delays and budget overruns. This is because the company can be held responsible for any variances. Thus, any overrun of the set construction budget is the responsibility of the construction company and any overrun of the delivery time is penalized. Therefore, enterprise contracts are instrumental in the risk of overruns.
In the event that Foxstone were to disappear, this would not affect the loan. Investors are still in possession of the debt contract issued by the company owning the real estate development project entered in the land register on behalf of the company. Depending on the investment offers, these contracts may also be linked to a first or second rank mortgage note, thus increasing the safety of the investment.