iCrowdhouse is a participatory financing platform that offers the possibility of real estate investments through the subscription of shares in a limited company through a capital increase.
Below we explain how our real estate Crowdfunding platform works, and how the investment projects that we publish are evaluated and can be viewed and analyzed and also how investments are made:
1.- Previous study of the project:
The first thing that is requested to the projects that are received in iCrowdhouseIt is complete information on the current status of the project, what experience the promoter team has and both its financial and legal situation. If the promoter is a legal person, it must be legally incorporated in Spain or a member country of the European Union, if it is a natural person, its tax residence must be in Spain.
The projects are previously studied by our multidisciplinary team made up of experts in various professional sectors, such as Real Estate, brokerage, promotion, technology, finance, market study and planning, they are analyzed according to objective parameters in order to discard projects that are not of quality in order to limit investment risks.
2.- Study of the viability of the project
Subsequently, the analyzed projects that meet our objective parameters are requested all the necessary additional documentation, in order to determine the viability of the project, the reliability of the promoter team and the fairness of the proposal.
With all this information, the team of iCrowdhousecarries out an exhaustive analysis of the project that includes from checking that it adapts to the provisions of the legislation for participatory financing projects, review of the business and financial plan as well as a legal, fiscal and corporate analysis, or any other aspect that considered necessary for a better evaluation of the project.
The Due Diligence to assess risks and the feasibility studies carried out by iCrowdhouse is of such rigor that only 5% of the projects we review are offered as a real estate investment opportunity on our Crowdfunding platform, prioritizing the publication of the projects based on the potential for return to investors.
3.- Report and Validation of the Project.
After accepting the viability of the project, an internal report is made to verify that the information provided by the promoter is truthful, and in which the technical, financial and product magnitudes are verified in such a way as to provide an impartial view and objective of the project, and that allows future investors to be transmitted quality information so that they can properly assess and decide their participation in the different investment opportunities that are offered in crowdfunding.
4.- Creation of the limited company of the project.
In this phase, the limited company is constituted in which the real estate of the project will appear as an asset and in which the investors will have a percentage of participation in the company based on the amount invested.
In all the projects of the iCrowdhouse real estate crowdfunding platform, in the companies that are constituted the promoters of the projects participate with a minimum of 10%, which makes their motivation equal to that of the investors.
5.- Publication of the Project
In this phase, prior to publication, we advise promoters in the best way to explain their project to investors and the documentation that is necessary to include in the publication of the project, so that investors can analyze and decide on the investment in their project, we also support them in the development of infographics, videos and photographs that facilitate the explanation of the project on the platform.
6.- Investment period
Once the project has been published on the platform, investors will be able to make their investment within the term established for each project. iCrowdhouse creates for investors a free wallet in our payment gateway where to transfer resources when you want to proceed to make an investment. The amounts are withheld until 100% of the financing is achieved.
In the case of not reaching all the financing necessary to develop the project, the amounts are released as available in the investor's wallet, and in which they can be kept for future opportunities or transferred to their bank account.
During the period open to make investments, the evolution of the financing campaign is visible in real time for all users of the platform, communication channels are also enabled so that interested investors can contact the promoter.
7.- Formalization of the Investment
Once all the necessary financing has been reached, a term is set for the promoter to carry out the legal procedures, the subscription of the investor's shares in the capital of the company is carried out, through a capital increase, moment in which the funds from the investor's wallet are transferred to the Limited Company.
8.- Purchase and reform of the property
In this phase and depending on the type of project, in the case of new properties, the purchase of the asset (usually land) and the development and construction of the properties are carried out, or in the case of existing real estate assets, the purchase of the same and if necessary, the reforms that will be stipulated in the project are carried out
9.- Marketing and sale of the asset.
If the investment project so establishes it, the real estate asset can be marketed by renting it, generating an income, until it reaches the stipulated revaluation and is sold, at which time investors receive the capital they have invested and the distribution of profits for capital gains and income generated.
10.- Dissolution and Liquidation of the Company
Once the asset has been sold and the money contributed to the investors has been returned and they have been limited.