Invest in a residential building in Bernex (GE), thanks to real estate crowdfunding

Each investor expressing an interest in an offer receives the investment file including:

• The investment brochure,
• The brokerage and management mandate,
• The co-ownership agreement,
• The mortgage contract,
• The deed of sale.

And must fill, sign and return the following documents:

• The subscription form,
• The power of attorney form in two copies,
• The accreditation with the mortgage provider (information on the investor and the origin of the funds),
• The document for the notary.

These documents are required by the mortgage provider and the notary.

No, crowdinvesting does not give access to the individual use of the property, unlike the PPE condominium. Co-owners invest in order to collect returns and not for the purpose of living on the property.

No, for obvious logistical reasons we usually do not organize private tours of the buildings before buying them. However, you have access to the photos as well as the technical and structural details of the property, summarized in the prospectus of each investment proposal.

PPE condominium usually consists in the purchase of an apartment. It gives the owner the right to use this apartment either to live in it or to rent it (and generate returns). A crowdinvestment in co-ownership consists in the purchase of a part of a building; each co-owner holds a fraction of the entire building. The goal is to earn a return and not to live in it. As a real estate investment, crowdinvesting in co-ownership has the following advantages over PPE condominium:

• The required investment is lower In Switzerland, to buy an apartment of 80 m2 it takes on average an equity contribution of CHF 150,000. Whereas the minimum amount of a crowdinvestment with Foxstone is CHF 25,000.
• The rental risk is lower In the case of a purchase of an individual apartment for the purpose of renting it, the owner bears the entire rental risk. While owning a part of a building composed of several apartments (as in the case of crowdinvesting) dilutes the rental risk in the case of the departure of a tenant.
• The interests of the co-owners are aligned In the case of a PPE condominium, some co-owners occupy the apartments and others rent them to generate a return. During the votes of the assemblee of co-owners, this situation may lead to divergent interests as to the expenses to be incurred in the common areas. In the case of crowdinvesting, all co-owners share the same goal: to generate a return, which facilitates the decision-making.
• The property management is taken in charge by real estate professionals In the case of a crowdinvestment in co-ownership, the management of the building is delegated to a property manager which is responsible for the collection of the rents and the maintenance of the building. Foxstone acts as the administrator of the co-ownership and takes the strategic decisions for the enhancement of the building. The co-owners can participate in the major decisions regarding the management of the building at the annual general assembly held digitally.

The renovation fund consisting solely of cash, is owned by the co-owners. Therefore, the share of each investor in the renovation fund is calculated pro rata of his or her share of co-ownership. In the event of a sale of a share of co-ownership, the shares of the renovation fund belonging to the out-going co-owner increases the selling price.