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Post by fundaus on Apr 4, 2020 14:10:24 GMT
Dear All, Let me introduce FUNDAUS, our new lending-based crowdfunding platform that has just been launched: www.fundaus.com. It is operated by Estonian company FUNDAUS OÜ which has obtained an Operating License from Financial Intelligence Unit (FIU) of Estonia fr borrowing and lending operations. Taking into account current market situation and recent developments, including pure scam and fraud and shaking stability of separate loan originators, we undertake 1) to be very transparent, providing comprehensive information on the project and the borrower; and 2) to offer only thoroughly selected and secured investment opportunities. All our investment offers, whether these are development or commercial projects, are secured with a real estate with our Agent Company (S.P.V.) registered 1st mortgage prior to issuing the loan (as a mandatory condition for loan issuing). We believe in the value of real property, which remains a tangible asset and is much less exposed to world market fluctuations. Besides that, we execute a conservative approach to the appraised value of collateral with loan-to-value (LTV) ratio not exceeding 70%. Moreover, we've made a voluntary commitment to comply with the requirements of the prospective EU Crowdfunding Regulation, which is still in the process of adoption and may come in force and become mandatory in 2021 and 2022. Being aware of the prospective requirements and their importance, we undertake to respect the rules starting from the very first day of operations. This concerns providing The Key Investment Information Sheet for each offer, prevention of interest conflicts (none of the borrowers is associated with the Platform) and complying with the limitations of maximum project amount per one project of one borrower. As we have just entered the market, our offers are not numerous, but each of them has been exposed to a thorough due diligence process, comprising legal expertise, independent financial and non-financial scoring, including risk assessment. Welcome on board and we are always at your service! |
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Post by geldregiertdiewelt on Apr 5, 2020 15:24:36 GMT
hilarious timing for launching a crowdfunding platform  |
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r00lish67
Member of DD Central
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Post by r00lish67 on Apr 5, 2020 17:04:45 GMT
hilarious timing for launching a crowdfunding platform Um, quite. Even if we weren't in this most interesting of times, I have to say starting your platform with a 70% LTV property development loan for 3.2 million Euros secured against a half-built clubhouse is just a tad gamey for me. Can they be even vaguely confident of the GDV at this point in time? A voluntary commitment to EU crowdfunding regulations that don't exist yet is not a factor drawing me in. 3 team members: 1 CEO, 1 AML expert, 1 web designer. So basically a 1 person show. Also, aside from the whole global pandemic threatening mankind kind of thing going on, Estonian P2P let's be honest is not in a good place right now. In the last 3 months, there have been at least four platforms I've seen just disappear with investors money in tow. Not suggesting any misdemeanours here, but Estonia seems to have a bit of an issue now in this regard.
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Post by fundaus on Apr 5, 2020 17:36:01 GMT
hilarious timing for launching a crowdfunding platform Hopefully our prospective clients will pay more attention to security issues, not to high interest rates, frequently offered with no collateral at all or vague credit portfolio...
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Post by fundaus on Apr 5, 2020 17:44:27 GMT
hilarious timing for launching a crowdfunding platform Hopefully our prospective clients will pay more attention to security issues, not to high interest rates, frequently offered with no collateral at all or vague credit portfolio... Thank you for your frankness. In contrast to the "platforms that disappeared", we offer full transparency with comprehensive information on the project and the borrower provided. All information can be verified. And, yes, all our projects are backed with real estate that can decrease in value or become less marketable, but will remain a real and tangible asset (compared to "non-collateral loan" portfolio). Kindly note that each loan is issued only after registration of mortgage. By the way, some of the platforms you are speaking about showed a rigorous team of people on their web-site. We believe that it is not quantity, but quality that matters. Should you have any questions or need additional information, we will be glad to answer.
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r00lish67
Member of DD Central
Posts: 2,691
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Post by r00lish67 on Apr 5, 2020 18:24:51 GMT
Hopefully our prospective clients will pay more attention to security issues, not to high interest rates, frequently offered with no collateral at all or vague credit portfolio... Thank you for your frankness. In contrast to the "platforms that disappeared", we offer full transparency with comprehensive information on the project and the borrower provided. All information can be verified. And, yes, all our projects are backed with real estate that can decrease in value or become less marketable, but will remain a real and tangible asset (compared to "non-collateral loan" portfolio). Kindly note that each loan is issued only after registration of mortgage. By the way, some of the platforms you are speaking about showed a rigorous team of people on their web-site. We believe that it is not quantity, but quality that matters. Should you have any questions or need additional information, we will be glad to answer. I have a few, if you have the time: 1) Given that it is part-completed, what happened previously with this building? Did previous funders back out or is this a new owner of the building? 2) The details state "estimated future value upon completion is 9.57 million EUR" whilst "Total project investments amount to 9.1 million EUR". Is this correct? That doesn't seem like sufficient profit margin. 3) Given the great level of economic uncertainty COVID-19 has introduced, has the GDV been amended? If so, by what factor? 4) Likewise, what assumptions are being made about being able to start construction - has any additional cost contingency been added to account for extended development timescales? 5) You have a very bullish funding target, especially for a brand new platform, of 3.2 million euros. What happens if this is only partially filled? 6) In your "why choose us" section, one of your bullet points is "high profits". Should this be more carefully worded? 7) The interest rate paid to investors is stated as 10%. What % will the borrower be charged if the loan is drawn down successfully, and what arrangement/platform fees are there for them?
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Post by fundaus on Apr 6, 2020 10:47:26 GMT
Thank you for your questions. Will try to answer them.
1) Given that it is part-completed, what happened previously with this building? Did previous funders back out or is this a new owner of the building?
The owner of the building remains the same. The purpose of funding is to refinance the existing loan obligations (previous loan disbursements, issued for previous construction activities) and to receive additional funds for construction activities. This is also the reason why the total amount to be gathered is substantial - as, for the security of our investors, our mandatory condition is registration of 1st mortgage, thus for this purpose we need to fully refinance previous loans. More information is available in KIIS, Key Investment Information Sheet, which is available for registered users.
2) The details state "estimated future value upon completion is 9.57 million EUR" whilst "Total project investments amount to 9.1 million EUR". Is this correct? That doesn't seem like sufficient profit margin.
9.75 million EUR is future value of the building as an object upon completion and putting in operation as per valuation report of an official real estate appraising company. 9.1 million is the total amount of investments, including the funds already invested previously and the remaining amount according to construction estimates. None of these figures itself illustrate profitability, as the revenues will be generated by selling apartments.
3) Given the great level of economic uncertainty COVID-19 has introduced, has the GDV been amended? If so, by what factor?
The GDV has not yet been amended, as at the moment we have no grounds yet for quantitative assessment of COVID-19, if any. At the moment we have information from construction sector about a slight decrease in prices for certain construction materials. In our opinion, it is premature to judge on the impact and whether it will have a long-term effect. GDV will be recalculated subject to further developments. If construction costs decrease, the borrower will need less funds and, therefore, further tranches will be corrected. Should the impact on Real Estate market be significant, sale prices will be corrected accordingly. Taking into account that a) in case of decrease in prices, both costs revenues and costs are likely to decrease; b) the project has substantial profit margin we do not expect a critical effect on profitability. However, at the moment it is premature to make conclusions on a long-term effect.
4) Likewise, what assumptions are being made about being able to start construction - has any additional cost contingency been added to account for extended development timescales?
The project will be implemented in several stages. After putting in operation the first stage, the sale of apartments will start that will substantially reduce the total project timetable risks. Pre-sales can be started as soon as there is certainty about financing of the 1st stage.
5) You have a very bullish funding target, especially for a brand new platform, of 3.2 million euros. What happens if this is only partially filled?
I definitely agree with you, it is an ambitious project to start with. The minimal target of the project covers refinancing of the previous loan obligations. Should it be gathered, we will establish our 1st mortgage and announce new investment pools. If it is not, then the investment pool shall be deemed as not completed within the stated term, thus the loan will not be issued and the funds will be returned to the investors.
6) In your "why choose us" section, one of your bullet points is "high profits". Should this be more carefully worded?
Good comment! Thank you! We will review these bullet points. In present conditions, our main accents are stability and security, rather than high income.
7) The interest rate paid to investors is stated as 10%. What % will the borrower be charged if the loan is drawn down successfully, and what arrangement/platform fees are there for them?
The worst case is debt recovery through sale of collateral. Thus we always care that LTV is never above 70% (for the project in question it is slightly lower). The proceeds shall be distributed between the investors.
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