Basel, bs
Residential
Funded
Foxstone charges structuring and fundraising fees as a percentage of the loan amount.
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 is the granting of a loan to a real estate company in order to finance a real estate development project or refinance an existing real estate asset. Investors receive a fixed interest on a quarterly basis and recover their capital at the maturity of the loan, the duration of which varies from 1 to 5 years. They have the possibility to put their loan contracts up for sale at any time on our secondary market.
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.
