April has begun, and Fellow Funders is celebrating! April marks one year since the opening of our new Real Estate division. On 8th April of last year, we officially opened our real estate division by launching our first funding round: a house flipping project. Together with Re-Aviva, we aimed to raise €870,000 for refurbishing and selling a commercial property in the Delicias district of Madrid.
One could say that this real estate sector investment was the perfect storm at the precise time, specifically for the house flipping at the earliest stage of Fellow Funders Real Estate. The “perfect storm” for the successful outcome of this and subsequent funding rounds. The precise time for the 2021 boom in the real estate sector, best figures since the 2008 crisis. Last year, the number of home sales, purchases, and prices increased.
Sotogrande: record investment round
If 2021 was a successful year for the Fellow Funders Real Estate division, 2022’s first four months are radiant. As radiant as the sun that bathes Costa del Sol: an unbeatable and unique location for our real estate division’s debut in the real estate development field. There is a difference between house flipping and developments. The former involves the acquisition of existing premises for refurbishment, while the latter refers to acquiring a plot of land to build directly on it.
The development we are referring to will take place in the luxurious residential area of Sotogrande where, among others, you can find the famous golf course of Guadarrama. In addition to celebrating the anniversary of Fellow Funders Real Estate, we are proud to announce that we raised the expected two million euros to embark on this project together with the developer Onys!
To date, this project is the most ambitious we have ever undertaken. Thanks to Onys, a developer with almost 40 years of experience in the real estate development sector, we expect to offer our investors returns that could exceed 50 %. For their part, the purchasers of these homes will benefit from a unique construction model based on WELL health and wellness criteria. In addition, Onys homes will be made of materials that can be converted into biological nutrients for the soil, in line with our commitment to ESG values.
Five million raised!
We previously told you about the Delicias and Sotogrande projects, our first and last stone (so far, of course) in this exciting journey. However, they are not the only ones. There were three house flipping projects with Re-Aviva (Cuzco, Fuente del Berro, and Puerta de Hierro). Together with the Delicias project and the Sotogrande development, Fellow Funders Real Estate has raised five million euros! Just in one year!
Not even in our best forecasts would we have imagined reaching this round figure in the first 365 days of Fellow Funders Real Estate. Just as Winston Churchill said, “Success is not final.”
We look forward to the final months of 2022 to surpass these figures. To prove it, we are launching our fifth round of house flipping in Plaza Lima, just a few meters away from the iconic Paseo de la Castellana. The project, with a fundraising target of 700,000 €, will comprise the purchase and renovation of a house for subsequent sale. It has estimated profitability of 11.64% and an estimated return period of nine months.
Bet on Real Estate!
We want our Fellow Funders Real Estate’s second year to be (at least) as successful as the first. For this purpose, we have the best team, the best partners, and, most importantly, the best investment community! Over the coming months, we will continue to offer you the best projects to diversify your investment portfolios.