As the summer vacations started a couple of weeks ago, the students’ break began for those who did their homework during the school year. Fellow Funders Real Estate can’t talk about vacations. Our offices are still busy looking for new investment opportunities that will benefit our community. However, just like the best students, we close the 2021-22 academic year with the satisfaction of someone who comes home with a report card full of “A’s”.
Ten Commandments. Ten. For us, at least in this blog, this number does not represent perfection, total success. If so, we would have no room for growth for the 2022-23 academic year, which, by the way, looks very exciting for the whole team. We are referring, however, to the number of projects we have already funded on our platform. From our debut in Delicias to the latest round for a development in Quinta de los Molinos, we have already raised more than ten million euros for real estate projects!
As good students do, hundreds of hours of dedication and effort are to blame for this success. But that is far from enough. Our goal is not only to increase our investment opportunities but also to offer the best of them! For this purpose, we have a series of standards and rules of reference in our day-to-day work. Today, we would like to introduce you to the ten commandments our Fellow Funders Real Estate team follows:
- No project that we do not believe in is offered to our community. We dedicate hours of exhaustive analysis before launching projects on our platform.
- All projects must go through our exclusive analysis and valuation model. This model measures the net return project yields to our investors and can examine different options for financial structuring based on different scenarios and sales rates, LTC variations, execution costs, developer contributions, execution timelines, licensing timelines…
- We align the interests of the investor with those of the developer. In the event that the project deviates in terms and costs due to the developer’s inability, all our operations will be influenced by conditions that will reduce the developer’s profitability in favor of the investor.
- The financial structure of the projects must be capable of withstanding an increase in material execution costs of about 20% without suffering liquidity problems throughout the development.
- The financial structure must also have a break-even point of around 15-20% below the sale price. Consequently, if the established sales prices fall by these percentages, the investment remains profitable.
- We rely on teams with proven experience in the sector.
- We offer projects with a risk-return mix that is acceptable to our investors.
- We are investors, not speculators. Similar to the rest of the opportunities that are listed on the platform, we offer a report of objective viability. This report includes an in-depth study of the metrics and risks of the projects.
- We do not stop there. Once the investment is made, the information is still just as important. That’s why we are committed to sending periodic updates with project information.
- We are Fellow Funders. We offer different opportunities than startup investment. We continue to follow all the values that have led us to grow these six years and the guidelines of our regulatory body, the CNMV (Spanish Securities and Exchange Commission).
Our mission can be summed up in a single commandment: to offer our Fellowers community attractive and profitable projects. Projects that will always be based on a policy of maximum transparency. Do you want to learn more about the Fellow Funders Real Estate offer? Visit our website, and don’t forget to contact us if you have any questions!