How a completed project opens the door to new investment opportunities
Each Investown loan has an expected repayment term, which is always indicative only. The project owner can apply for an extension, but also can repay the loan before that deadline. What does it look like when a project manages to be successfully completed sooner than expected?
Model example
Imagine investing in a model project. You can see that it has a great A rating, a high base yield of 10% per annum and an LTV of 75%. The loan has a maturity expectancy of 24 months, so the money invested should earn you all this time. You invest 50,000 CZK in the project and look forward to the returns. But the project will be completed successfully In 18 months, the money invested will be returned to your wallet.
The project owner can gradually repay his loan according to how, for example, he sells completed housing units. In this case, a proportional part of their principal may gradually be returned to investors.
Investing in a model project will give you earned 7,500 CZK in proceeds and the entire principal was returned to you. This is a great result of your investment. You can now invest the returned principal in a new project, where it will earn you money again.
And if you took advantage compound interest, so you have continuously invested even the returns that have already begun to earn you.
Real example from practice
In order to increase the likelihood that the project will be completed within the expected deadline, we set this deadline together with the project owner to account for possible complications, such as delays during construction.
Meta Development Ltd. applied for the first loan in mid-2023. Project Apartment buildings Meta With a B rating and an LTV of 59.3%, we launched successively in three tranches totalling almost CZK 100 million. The aim of the project was to build a modern apartment building in Kladno.
The owner of the project gradually repaid the interest. In several cases, we have recorded a later receipt of payment due to administrative reasons. The entire loan was repaid on February 14, 2024, and investors returned their principal to Investown wallets before the expected loan repayment deadline.
What happened, thanks to the successful completion of the project
- The owner of the project received space for further development. He completed one project and could embark on another. Today, he is successfully developing two other projects, which he has also funded through Investown. The first of these is Meta Development II, the second is Residence Lesík.
- Revenues were paid to investors throughout the life of the project and subsequently the principal was returned successfully. Investors were able to turn their money around after the project was completed Invest in other projects. In this case, to other projects of the same owner.
(This article does not constitute investment advice and is for informational purposes only.)
.avif)
