Private investors may now participate in a new equity crowdfunding real estate round for a mortgage of residential buildings in Darmstadt / Frankfurt area of Germany. “Wohnen Im Village 11” on zinsbaustein.de features ten semi-detached houses and one detached house. Private investors can participate in the form of a subordinated loan from 500 euros to 10,000 euros with a maturity of approximately 18 months and receive an interest rate of 5.25 percent per year. There is a repayment option after 12 months, when construction and sales run according to schedule. To date, 625,000 euros have been raised from the crowd for the project; a waitlist has been started.
The new building project in the town of Gross-Zimmern, 15 km from Darmstadt and 35 km from Frankfurt, is well under way. Four houses in the planned energy-efficient and environmentally friendly design houses have been completed; seven of the eleven units have already been sold.
“For investors, the financing of the new building has been given a good rate of return and a short contract period, in which the desired invested capital will be repaid after 12 months,” shared Frank Noé, zinsbaustein.de CEO. “The Greater Darmstadt / Frankfurt is a very interesting real estate investment location. With 14,000 inhabitants Gross-Zimmern is a small town, which offers good local shopping opportunities and a rich leisure life. Convinced the project is based on sound pricing and a good developer margin, which can act as a buffer in case of unexpected events. Developer Dexturis-Bau GmbH “Wohnen Im Village 11″ has backed the project, its first on zinsbaustein.de. Based in Bad Nauheim near Frankfurt, Dexturis Group has specialized in the construction of high-quality houses in Hesse since its inception in 2008. In addition, the company offers modernization of existing properties and arranging financing solutions for its customers.”
The project developer provides zinsbaustein.de with the collected capital in a mezzanine loan.
“Project developers offering this form of financing several advantages,” added Noé. “On the one hand they can use the equity for further land acquisitions and projects. On the other hand creates any equity crowdfunding campaign much attention and social acknowledgment for the project and the developer. The overall investment volume is provided through equity crowdfunding as mezzanine capital, is 630,000 euros.”
Founded in May 2016 by the sontowski & partner group and the FinLeap GmbH, the Berlin-based zinsbaustein.de is active through each real estate project an intensive selection process; the committee then decides final about a release of the project. Only when it has successfully completed this process, does the investment opportunity become available.
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