• What is the First Demand Guarantee?

  The first demand guarantee is a security which commits the guarantor (in this case the borrower), in the context of an bond subscribed by a third party (in this case the investor), to repay the sum due, either on the first demand of the creditor, or according to previously agreed terms. This guarantee is on the same level as a personal guarantee when given by a company. What is a personalPopular

• What is construction and sales civil company?

  A construction and sales civil company (SCCV) is a form of company widely used by developers. The SCCV functions like a classic civil company, it is its corporate purpose that is specific. The SCCV is not taxed directly, it is said to be transparent. Indeed, taxes are paid by its parent company if it is owned by another company or deducted from the income of each partner if it is owned by one or more individuals. Its durationPopular

• What is real estate crowdfunding?

  Real estate crowdfunding is an investment that allows investors to lend to real estate operators. The platform brings together project owners and investors, allowing the former to finance his operation and the latter to make his savings grow. * The operator, the borrower, issues a bond and the investor participates in the bond issue by becoming a lender. color 3faae1 (Real estate crowdfunding market figures in FranceSome readers

• What is the sale in future state of completion (VEFA)?

  color 3faae1 (What is the sale in future state of completion (VEFA)?) VEFA stands for sale in future state of completion. It consists, for a purchaser, of buying a home off-plan and therefore not completed. The VEFA is a contract between the purchaser and the developer which guarantees the completion of the construction for the purchaser and allows the developer to be paid as the work progresses. To do this, a payment schedule is set by the developer and the balance is paid on deliverySome readers

• What taxation for real estate crowdfunding?

  Real estate crowdfunding is a bond investment. The interest received is therefore subject to capital taxation, so you have two choices: Flat tax: 30% tax on interest received during the year (12.8% tax and 17.2% social security contributions), Integration with income and taxation at the marginal bracket of the income tax and social security deductions of 17.2%. The second option applies to you if yourSome readers

• What is mass of bondholders?

  The bondholders' group represents all the bondholders of a project as a single entity. The representative(s) have the power, on behalf of the bondholders, to make decisions in the common interest. In the case of a project financed on our platform, Raizers represents the bondholders' mass. How to invest in an operation? What is a bond? (/en/articlSome readers

• What is a term loan?

  A term loan or borrowing is a loan whose capital will be repaid in full at maturity. The interest can be paid in several instalments or at maturity. For example, in the context of a real estate crowdfunding operation: the investor lends €1,000 at 10% per year for 24 months, so the developer must pay: 100 € at the end of the 1st year (i.e. the interest of 10%*1000 € of capital over 12 months) 1100 € at the end of the 2nd year (1000 € capital + 10Few readers

• What is a mortgage?

  A mortgage is a security interest in an existing property (land, building, house, etc.), allowing the lender to seize the property on its behalf in case of default. The mortgage can be first or second rank, the rank indicating the order of priority of the creditors for the repayment. A first rank mortgage ensures that the creditor will be reimbursed first in case of default. In effect, this means that the creditor will be the first to be paidFew readers

• What is a personal guarantee?

  It is quite common to ask, in order to guarantee a loan, that the director establishes a personal guarantee. This commits the director to his own assets and requires him to personally assume the repayment of debts if they remain unpaid by the company. This personal guarantee must be accompanied by a handwritten text stipulating that the manager is aware of the scope of the commitments made and their amount. In the event of death, the guaranteFew readers

• What is a bond?

  A bond is a debt issued by a legal entity (in this case a company) to finance itself with investors, called bondholders. Bonds are the debt-like financial instruments of the company issuing them. In the case of a bond issue, the company and the investor sign a bond contract formalising the loan and setting out, among other things, the maturity (duration of the loan), the interest rate and the other obligations of each party. color 3faae1 (RelatedFew readers

• How do interest and coupons work?

  A coupon is attached to a bond. It represents the interest paid to the holder of that bond, in this case the investor. Historically, bonds were printed on paper and accompanied by detachable coupons, with the payer withdrawing the corresponding coupon as soon as he made a repayment. To illustrate, with a €1000 bond over 24 months at 10% interest rate, a coupon is 1000*10%, i.e. €100 to be multiplied by two, given that this interest rateFew readers

• What is an amortizable loan?

  A loan is said to be amortisable when the capital is repaid in several instalments over time. During the entire duration of the loan and according to a schedule established beforehand, the borrower will repay part of the capital with interest. It is the opposite of a bullet loan. Example in the context of a real estate crowdfunding operation: the investor lends €1,000 at 10% per year for 24 months, to be amortised annually: 600 € at theFew readers

• What is the duration or maturity of the loan?

  The duration of the loan, also called maturity, is determined before the operation. It indicates to the investor the latest date at which he will be reimbursed for the capital invested as well as the interest over the period. In 2021 on Raizers, it was 20 months on average. What is a bond? What is an amortizable loan? (/en/article/what-is-an-aFew readers

• Who is the issuer?

  In real estate crowdfunding, the issuer is the real estate developer or property dealer. It issues debt that will be subscribed to by investors. The investor lends money to the issuer, who in return will pay interest to the investor over the life of the loan, in addition to repaying the capital invested. What is real estate crowdfunding? What is a personFew readers

• What is performance or profitability?

  In the context of a financing round for a real estate project, an interest rate is negotiated beforehand between Raizers and the real estate developer. This rate represents the return on the invested capital that will be paid to the investor, at regular maturity or at the end of the contract (maturity of the loan). Example: for €1,000 invested with a 10% return, over a 24-month period, the investor will receive €100 at the end of theFew readers

• What is the Financial Guarantee of Completion?

  The financial guarantee of completion is an insurance given (by a bank or an insurer) to a property developer on behalf of the purchasers of the property to be built. This insurance provides a guarantee that in the event of the developer's default, the construction will be completed and the property purchased will be delivered. It is issued by an insurer who, in return for a percentage of the cost of the construction andFew readers