CONSTRUCTION OF HOUSES AND MULTI-FAMILY RESIDENTIAL BUILDINGS

Construction of houses and multi-family residential buildings

Basic information about the investment.

1. Type of investment:

• Construction of houses and multi-family residential buildings with mixed use, with the aim of selling the detached property units.

2. Forms of investment:

The investment can be in the form of "Cuentas en Participación" or "Debt Investment", depending on the preferences and risk profile of the investor.

• With "Cuentas en Participación", the investor provides capital to the company in exchange for 30 to 60% from the profit from the successful implementation of the project. This form of investment allows the investor to benefit from the profit generated by the project together with the entrepreneur.
• In "Debt Investment", the investor provides a loan to the company and receives a fixed annual interest of 12 to 18% , which is agreed in advance. This form provides a stable and predictable return without being tied to the success of the project.

3. Minimum amount of investment:

• The minimum amount of investment depends on the available investment opportunities at the time of investing the funds. Typically, minimum stakes start at €100,000 for single-family houses and from €1,000,000 for multi-family residential buildings, with some projects also offering smaller investments through collective participation.

4. Minimum term of the investment:

• 24 months with the option of exiting the investment through the so-called "substitute party". In this case, the contract is terminated, and the investor receives back the funds paid by him, including a proportional part of the profit or the agreed interest. This part is calculated based on the time during which the funds were used, relative to the total contract period.

5. Minimum guaranteed annual return on investment:

• 12% guaranteed annual return on the invested amount with full capital recovery at the end of the investment period.

How the investment is made: Step by step

1. Identification of suitable sites for construction:

• We select strategically located plots in areas with high development potential. We analyze the location against infrastructure, demand and value of future properties.

2. Purchase of the plot:

• We purchase the selected plots that meet the criteria for investment growth and high demand. The prices are adjusted to the future sale prices of the properties.

3. Design and planning:

• We assign a team of experienced architects and engineers to develop the projects for the buildings, in accordance with modern standards and the needs of the market. We are preparing a detailed construction plan.

4. Construction of residential buildings:

• Construction begins in accordance with the plan, including all necessary infrastructural and architectural elements. We strictly monitor construction quality to ensure long-term value.

5. Sale of completed property units:

• After construction is completed, we sell the individual property units (apartments, houses, etc.) at market prices. Our marketing team is actively working to promote the project.

6. Return of invested capital and profit distribution:

• After the successful sale of the properties, we return the initially invested funds and distribute the profit among the investors in proportion to their share.

7. Repeat the process:

• After distribution of profit, we start new projects, and investors have the opportunity to reinvest their funds in the next projects.

This strategy ensures stable returns through the realization of innovative construction projects with high potential.

Frequently Asked Questions (FAQ)

1. What are the main risks with this type of investment?

• The main risks include possible construction delays that can complicate the process and fluctuations in the real estate market. Also, unexpected costs during construction can reduce the expected profit. Careful planning and professional project management are required to minimize these risks.

2. How is the security of my investment guaranteed?

• The security of the investment is guaranteed by the selection of strategic locations with high demand and growth potential. Careful selection of contractors, strict quality control and the use of high-quality building materials are key factors that ensure stability of property values. Also, the transparent process and accurate financial calculations ensure predictability of the investment.

3. What does return on investment depend on?

• The return depends primarily on the form of the investment. Investors who choose to invest in the form of "Cuentas en Participación" can expect a percentage of the profit on a successful investment. For those who choose Debt Investment, the annual return is fixed and is based on a pre-agreed interest rate on the capital borrowed.
• The return also depends on the size of the investment. Smaller investments offer a lower rate of return and lower interest, while larger amounts increase the rate of profit and interest. The larger the amount invested, the higher the return will be.
• In addition, the return is also tied to the term of the investment. The longer the investor leaves his funds in the project, the higher the interest and profit he will be able to realize.

4. What happens if you fail to sell the properties?

• In rare cases, if we are unable to sell the properties at the expected price, we will continue to work to find suitable buyers. If this drags on, we can offer various options for exiting the investment, including selling at a lower price or renting out the properties until market conditions improve.

5. Can I exit the investment before the end of the project?

• Investments in this type of project are usually fixed-term. However, in some cases we may offer to buy out your share if there is such demand from other investors or partners. The conditions for this are discussed individually on a case-by-case basis.

6. Which form of investment is for you?

• If you are an investor who is willing to take on higher risk in exchange for the possibility of greater profit, Cuentas en Participación is right for you.
• If you are an investor who prefers minimal risk with predictable and stable returns, Debt Investment is the best solution for you.