How we protect your investments — what are the options and what to prepare for
Of course, protecting your investments is an integral part of our work. If the project does not go according to plan, we always do our best to ensure that the proceeds and penalties are paid properly, but also the full return of the principal and the completion of the project. However, it is not always a simple process.
Every investment carries a certain degree of risk. That's why we have loans secured real estate — namely, the lien, which is the first in the sequence. This leaves us in a strong position to deal with complications as no other lender can exercise their rights to the property in front of us.
TIP: Read, How we protect investorsif the project owner stops repaying.
However, if we proceed with enforcement, it is necessary to take into account that the process is always conducted through the courts or bailiffs; and subject to statutory deadlines. Therefore, any recovery can stretch up to a few years. We will show how the recovery process for a problematic project can take place using one model example.
Model example of recovery at Alfa
How it all began
The owner of the project, let's call him Alfa Company, he began to have problems with the implementation of the project. We were in regular contact with the project owner and were looking for a suitable way out that would ensure timely payment of interest and subsequent recovery of the principal. However, after that, the Project Owner stopped communicating with us and fell into arrears with the payment of interest.
Execution of a lien
Therefore, we sent to the project owner formal request for payment of the amount owed. The deadline for responding in these cases is usually 10 days, but unfortunately we have not received any comments or payment. So the next step followed. We sent to Alfa and the Land Registry notice of commencement of enforcement of the lien and in 30 days we could effectively start its performance.
Execution on the basis of notarization
We signed with Alfa notarized registration with direct enforceability. Thus, we were able to apply for the initiation of enforcement directly to the bailiff without the need for lengthy legal proceedings. After reviewing the proposal the bailiff initiated the execution and could have already ordered a public auction of real estate.
A story with a good ending
The first time, the property was not auctioned, which prolonged the recovery process. However, the second attempt has already been successful and mortgaged properties managed to be auctioned. The yield covered the claim, including accessories, so investors got their funds back.
The whole process took approximately 9 monthsThis is very fast compared to normal practice.
TIP: Read how we proceed enforcement of problematic projects.
Diversify to minimize risk
The best way to protect your finances and minimize the risk of loss is Diversification of the investment portfolio. Invest your savings in a variety of assets and projects within Investown. If one of your investments fails, the others can keep earning you. We also recommend that you watch the long-term performance of its investment portfolio as a whole. Do not focus on the performance of only one part of it in a short period of time.
TIP: Read what they are The most common reasons for delay.
(This article does not constitute investment advice and is for informational purposes only.)