Interview with Víctor Vaca, PM2's CMO
PM2 is a website that lets you invest for every square meter in the top property investments in Mexico.
This is crowdfunding space that lets you access property investments in as little as square meters.
Here is an interview with the firm's CMO Víctor Vaca.
How did the idea for this form?
This was totally spontaneous. We were all pros in various sectors - finance, construction, selling properties... When it all came together, it birthed that owning properties or investing in them was profitable.
They founded the company in 2017 and carried on with making and planning the venture. They designed the plan and studied how to connect it to Mexico's terms and laws. The Holistika Tulum was their initial venture.
Where does the company stand in regards of the Fintech Law?
New modifications and regulations happen each day, so we are updating and accommodating ourselves to what the Fintech Law is asking us to do. These are clearly investments that are always compliant with the law and we stand by the regulation, since it is a secure thing for investors.
It takes a long time, it has various formats and needs, since there have been new updates, so working with our lawyers is a must in order to get the docs ready. This will help our investors and ensure them that investing with us is a secure thing to do.
What is your biggest asset and what makes you stand apart from other investors?
Our partners are really experienced and successful. They bring knowledge from other firms. This makes our clients calm and they know they are entrusting us with money we won't squander.
We aim to democratize investing and let it have a social focus. Mexico's population doesn't have lots of investors, since it is usually expensive to be one. We want all people in Mexico to be able to invest, so they not only save money, but gather more profits. That is why the min. investment is 100 pesos.
This lower threshold also lowered the risk of investing into something new. Our tech option offers good returns and people can try out our offering that has a small required amount of min. investment. This means that next time people may invest more money.
What is the average return for investors?
Small and big investors - it's the same for us and they get the same yield, which is 21 percent. When it comes to the approximate profitability, the ventures usually have around twenty percent of returns.
How much are commissions?
The commissions are now also lowered, to 0.5% of the invested amount. This is even further discounted from the returns. The mentioned 21 percent return is net.
What is the firm's strategy?
The commission is low, and builders are funded from the gathered investments. The builders get a commission for that. People can look to our page to see all the info about the ventures, how they are coming along and their construction. One of the investors even bought the whole department once and that is a bonus we offer, too. Exposure is a given, too, in order for them to sell promos quicker.
What's the investment process like and how is it structured?
Crwodfunding can be a risk for investors because they are automatically a partner for those who develop properties. So we want to render the process even safer for the investors with a loan scheme.
Investors can deposit the capital by moving it to a PM2 concentrator account and then the company wires it to the developer.
PM2 thus does a lon to the developer in the name of the one investing. The apartment is in their name, yet properties are a warrant of the loan and developers can't sell it and damage the investor, since they get a return of the capital gains that are created when the real estate sale ends.
Would you consider a foreign investor?
The company has investors from the EU, the States and Argentina. Due to the law, the operation must be done in pesos and there is a special account for that which offers a competitive exchange level. The yield of the investments and the appropriate tax issue are made, depending on the current exchange rate.
What's the overall state of property crowdfunding in your country?
It is really expanding fast - the National Report on Financial Inclusion 2016 reported that it has grown 495% in 4 years.
We will grow for sure as a whole sector, since people are getting aware that conventional financing incurs too much needless fees. PM2 is also benefiting from the word to mouth reputation of crowdfunding.
Which future plans do you have?
This is a fairly new space for Mexico and the oldest platform is younger than 5 years. We are talking with foreign developers to see how to diversify according to regulations.
The plan is to carry on growing. We had funding of four million in less than a year and our newest venture now has 5 million. We hope to carry on this way.
We hope we will get to lots more people and grant them a chance to become investors. We want everyone to get a chance for a better return, and a secure one like the traditional marketplace offers.
PM2 main features and highlights
- Real Estate Investing
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