How it Works

Crowd with Trans Equity matches property deals with investors.

In a Country like South Africa, where Crowd with Trans Equity is based, is a tough market to enter for many everyday investors and small developers as well. Crowd with Trans Equity offers an innovative way for you as an investor to team up with entrepreneurial property developers from around the Country in deals that would normally be out of reach for many. 

The deals are found and carried out by property developers around the Country in areas where we believe there is opportunity for growth and/or where we feel the deal itself presents good profit margins for you as an investor. 

The property developer takes care of the finding, acquiring & developing of the properties and prepares them for rental or sale. Your investment funds are used together with bank finance taken out by the developer to acquire and develop the properties which are then rented and/or sold.

Details are given in full on a deal to deal basis.

Investing

You can Invest as a share holder in the company that owns the property

Each property development is bought in a special purpose vehicle company (SPV Company). The SPV Company is owned by the property developer and you are issued shares when you make your investment into the SPV Company via the Crowd with Trans Equity website. The properties are developed with the aim to sell for a profit. Assuming there is a profit, you will receive proportionate amount of profit to your investment into the SPV Company. 

If a property is rented for a period of time before selling it, you will be issued rental dividends from the rental profits of the property after deduction of running costs such as mortgage payments, maintenance & rental management fees.

Profits

  • Rental dividends paid monthly to investors (if property is rented)
  • Share in profit from sale of property paid to investors
  • If a property is rented, it will be sold when it hits a target sale price (set by developer before deal is promoted)
  • Target profit on day one from purchase discount or development gain is 20% profit.

Fees

  • 5% fundraise fee (of total deal acquisition costs) released to Crowd with Trans Equity on completion of successful fundraise.
  • Rental management fee is 10% of gross rent plus VAT

Structure

  • You buy shares in Special Purpose Vehicle (SPV) Company
  • The SPV Company owns property with you & other shareholders
  • Company shares registered at Companies House
  • Company ownership registered (Pty) Ltd

Term

  • You may sell your shares at any time via the website *
  • Properties may be sold when development is complete; or
  • Properties may be rented until they reach a sales trigger value set by developer. This protects against a downturning market as it means properties don’t have to be sold if the market is down.
  • Anticipated project term 1 to 5yrs depending on project.
  • If the properties haven’t reached the sales trigger values within 5 years, in some cases, you and other investors may be able to vote on whether the properties are sold or not.

*We cannot guarantee you will find a buyer for your shares or what price you may be able to sell them for

Exit Strategy

  • Finish development
  • Rent until the profit margin reaches pre-determined level set by developer (eg 50% growth on the total deal costs, with 20% achieved by development)
  • Sell when the target sales profit is achieved
  • Your money back
  • Profit shared between investors & developer

Risk Management

  • Each developer must undertake identification and anti money laundering checks carried out by Crowd with Us
  • Crowd with Us assesses each developer’s project appraisal
  • If the due diligence checks are satisfied by Crowd with Us, the property will be listed on website
  • Specialist property lawyers are used in the conveyancing process
  • If target sale price is not achieved in the target term, investors may vote to decide if property is sold or not

Voting Rights

  • Where the properties are rented, investors may be given the opportunity to vote if the property doesn’t reach the pre-determined sales trigger value within the given time frame.
  •  

Documents

  • Investor Agreement or Shareholders Agreement
  • Share certificates

Directors : 
P.J. Mc Master (CEO)
Financial Manager :
P.J. Mc Master
H.O.D Accounts :
Martin Ferguson
Email

Head Office
Tel: +27(0)861 888 223
Fax: +27(0)86 666 5254
Address:
Bellville Business Park
3rd Floor Skyscape Terraces
D J Woods Street
7530