Invest in a real estate equity loan in Zürich (ZH) through crowdlending

For crowdlending, Foxstone charges the borrower a percentage of the loan amount, depending on the terms of the loan, to manage the operation. 

The loan is materialized by a debt contract issued by the borrowing company which owns the construction project or the building to be refinanced.

Crowdlending investments are loans of between 12 and 36 months made to a real estate developer to finance a development project or refinance an existing asset. 

Without replacing the bank, investors match the developer’s equity in the form of a junior loan. They receive fixed interest payments, either annually or at the end of the loan term, and recover their capital at the end of the loan term. 

Foxstone requires at least one of the following four guarantees for crowdlending: 

• Second mortgage registered in the land register 

• Pledge of shares in the project company, known as a share pledge 

• Retention of part of the transaction margin by the bank to repay the first and second mortgage loans 

• Personal guarantee of the project owner 

If a loan is extended, the borrowing company pays the investors contractually-defined penalties, and interest continues to accrue on the period for which the loan was extended.