iCrowdhouse is a participatory financing platform that offers the possibility of real estate investments through the subscription of shares in a limited company through capital increase.
Below we explain how our real estate Crowdfunding platform works, and how the investment projects we publish are evaluated 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 iCrowdhouse, is a complete information of what the current status of the project is, what experience the promoter team has and both its financial and legal status. If the promoter is a legal person, it must be legally constituted in Spain or a member country of the European Union, if it is a natural person, its fiscal residence must be in Spain.
The projects are studied in advance by our our multidisciplinary team formed by experts in various professional sectors, such as Real Estate, intermediation, promotion, technology, finance, market research and planning, analyzing them according to objective parameters in order to Discard projects that are not quality in order to limit investment risks.
2.- Study of the viability of the project
Subsequently, to the analyzed projects that meet our objective parameters, all the necessary additional documentation is requested, 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 iCrowdhouseIt carries out an exhaustive analysis of the project that includes from the verification that it adapts to what is stipulated in the legislation for participatory financing projects, review of the business and financial plan as well as a legal, fiscal and corporate analysis, or of any other aspect that It is considered necessary for a better evaluation of the project.
Due Diligence to assess risks and feasibility studies conducted by iCrowdhouse is of such rigor, that only 5% of the projects reviewed are offered as a real estate investment opportunity in our Crowdfunding platform, prioritizing the publication of projects based on the potential for return to investors.
3.- Project Report and Validation.
Subsequent to the acceptance of 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 quantities are verified in such a way that it provides an impartial view and objective of the project, and that allows to transmit to the future investors a quality information to be able to 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 asset of the project will appear as an active cone 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 real estate crowdfunding platform of iCrowdhouse, in the societies that constitute the promoters of the projects they participate with a minimum of 10% which makes their motivation equal to that of the investors.
5.- Project Publication
In this phase, prior to publication, we advise developers in the best way to explain their project to investors and the documentation that needs to be incorporated into the project publication, so that investors can analyze and decide on the investment in their project. project, we also support them in the preparation 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 period established for each project. iCrowdhouse creates a free wallet for investors in our payment gateway where you can transfer resources when you want to make an investment. The amounts are withheld until 100% of the financing is achieved.
In the case of not reaching all the necessary financing to develop the project, the amounts are released as available in the investor's wallet, and in which you can keep them for future opportunities or transfer it to your bank account.
During the open period 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 developer.
7.- Formalization of Investment
Once all the necessary financing has been reached, the promoter is set a deadline to carry out the legal procedures, the subscription of the investors' shares in the capital of the company is made, through a capital increase, at which time the funds of the investor's wallet are transferred to the Limited Company.
8.- Purchase and reform of the property
In this phase and according to the type of project, the purchase of the asset (land usually) and the development and construction of the real estate, or in the case of existing real estate assets, are made in the case of new real estate, 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, the real estate asset can be commercialized by renting it generating an income, until it reaches the stipulated revaluation and proceeds to its sale, at which time the investors receive the capital they have invested and the Benefit sharing 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.