Details on Exporo
Exporo is a crowd-investing platform providing access to expert and attractive real estate projects for everyone. Simon Brunke, Dr Björn Maronde, Tim Bütecke and Julian Oertzen formed the company in 2014. The FinTech startup has successfully financed 51 real estate ventures since 2014 and has brokered more than €66 million. Investors were successfully repaid in amounts of 11+ million euros. Exporo nvestments are direct, transparent and simple: Investors can invest as little as €500 in attractive real estate projects. They can also gain from short terms (average of 24 months) and high cash returns of up to 5.00% to 6.00%.
Few main facts
- 63 projects funded with success
- Successfully brokered funds over €84 million
- Money repaid at more than €13
The Exporo investment ranking
Exporo implemented a new, structured rating system for risk assessments. Investors will now have the opportunity to measure their projects according to the investment ranking. A dedicated real estate specialist team monitors and reviews each project according to specified criteria, as well as data on industry and investment. Six groups exist: AA-F. (AA is the highest rating possible, F is the lowest rating possible). Assessment is carried out on the basis of the following criteria: real estate location, capital allocation (subordinate, non-subordinate), rental status, real estate development status, project developer experience, risk reduction measures.
What ROI from Exporo can investors expect?
Exporo currently makes use of subordinated loans as an investment tool to provide the project developer with mezzanine money. Provided directly are funds to the project owner by using a subordinated loan by investors. The subordinated loan including the fixed interest would be paid back directly to the investors at the end of the term. It is easy and free to register with Exporo and use the website. Capital providers also don't need to pay any fees for their investment. The investment is completely committed to the chosen property project, and interest will be added to the debt. The given capital will be refunded to the investors at the end of the term. A fixed interest rate of 5 to 6 percent p.a. depending on the project is going to be taken into consideration. The subordinated loan provider is entitled to repay the funds before the end of the contract. In this case the entitlement to full interest becomes payable. The ROI (return of investment) significantly increases.
What is the average term planned for the property investments?
The terms of the Exporo project are limited and usually last just for 18 to 36 months.
Which are the big investor risks, and how can Exporo reduce them?
Exporo has experienced in recent years that volatile external factors can contribute to a collapse of the real estate market. This will not inherently affect the real estate property scheme. The consequences are unlikely to be felt in regions with high population density and housing scarcity as well as those with steady population growth, and thus will not put the real estate project at risk. Also in this situation, the following also applies: the right of the creditors to a prompt return of the value of the investment and the interest rate remains unchanged. There are no co-determination provisions for subordinated loans, as would arise during a mutual company's general meeting. And aside from making the investment, there are, in general terms, no other obligations. There will not be margin calls, in particular. The bid for the investment is based on a fixed term. The following is usually applicable to the investor: Funds can not be accessed during the period. Notwithstanding comprehensive and cautious expert preliminary assessments, the investment may be deemed risky and can result in a complete loss of the funds.
How is Exporo reducing the risks?
To date, every single real estate project in its entirety has been successfully financed, and all repayments to capital providers have been made on time. Investing in real estate developments is related to market risks. That's why sharing only selected projects with investors is very important to the Exporo team. Those projects are carefully selected. Potential projects are screened in a two-stage cycle to meet and exceed the quality requirements set by Exporo. Ultimately only 2–5 percent of project applications are accepted for investment. A dedicated team of qualified workers is responsible for tracking and reviewing every single project according to business and investment data. In a multi-level assessment process our team analyzes and reviews all relevant real estate and project-related information. Then, Exporo investors study the real estate project assessment. An example of the project evaluation criteria is where the project is located. This evaluation category includes the object's micro and macro position, as well as related factors such as spatial-temporal growth, purchasing power, work attractiveness, and vacancy. Exporo specialists are now recalculating all building costs with a mark-up. In fact, all reasonable market rates are also determined with a mark-down, so accurate costs and fair sale prices are still offered. The project's development process also affects risk management. In general terms, a project in an advanced development process bears lower risks.
To invest or not to invest?
Exporo is a fantastic investment depot in Europe for seasoned investors seeking to diversify and invest in real estate markets in Austria and Germany. But we always encourage our visitors to check out other options on our website before making an investment since you will possibly find some alternative platform that will fulfill your investment needs.
Exporo main features and highlights
- Commercial Real Estate
- Residential Real Estate