Post by pp22 on Nov 27, 2014 14:16:36 GMT
EstateGuru.eu, a real-estate P2P lending and crowdfunding portal is looking at introducing two products that would offer potentially higher returns to investors. We are interested in hearing your feedback and preferences which product is more attractive for our potential investor base:
Product 1 - Pure equity loan – pays 30%-60% in the best case scenario, but in a downturn investor will lose potentially everything, including the principal. Such products are popular in the US and also offered by one of our competitors in Estonia
Product 2 – a ‘success-linked’ loan. Example: The loan pays a guaranteed coupon of 5% and in positive scenario (successful completion and sale of a project) an additional 0-15% (depending on the exit price or realised cash flows), with a total return of 20%. The principal is guaranteed the same way as it is with the current real-estate backed loan.
Which product is more attractive for you? What are your thoughts about the two loans? Would you make an investment in one of those loans?
Your help is much appreciated!
EstateGuru
Product 1 - Pure equity loan – pays 30%-60% in the best case scenario, but in a downturn investor will lose potentially everything, including the principal. Such products are popular in the US and also offered by one of our competitors in Estonia
Product 2 – a ‘success-linked’ loan. Example: The loan pays a guaranteed coupon of 5% and in positive scenario (successful completion and sale of a project) an additional 0-15% (depending on the exit price or realised cash flows), with a total return of 20%. The principal is guaranteed the same way as it is with the current real-estate backed loan.
Which product is more attractive for you? What are your thoughts about the two loans? Would you make an investment in one of those loans?
Your help is much appreciated!
EstateGuru
