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.
The construction contracts are of the “general contractor agreement” type. These contracts are slightly more expensive than the “total entreprise contract” type, but they reduce the risk of delay and budget overrun because the company is responsible for any discrepancy. Thus, any overrun of the agreed construction budget is the responsibility of the construction company and any delay from the delivery deadline is penalized.
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.