1.Q: What does Crowdfunding mean?
A: Crowdfunding means that a group of people invest in one or more selected projects. The projects areselected according to standards similar to banking criteria, reviewed and presented in the context of apitch
2.Q: How often are payments made?
A: The frequency of the payment of interest repayments is flexible and defined by the fundraiser witheach loan. This could be either every 1, 3, 6 or 12 months, although most loans have a monthlyrepayment schedule. In case of a bullet loan, the repayment would be at the end of the term (max 60months) and only interest will be paid during the loan term. A full bullet loan will pay both therepayment and interest at the end of the term (max 36 months).
3.Q: What types of loans does Max Crowdfund offer?
A: Linear loans, which are loans where a fixed amount is repaid periodically (usually monthly). The fixedamount is calculated by dividing the loan amount by the number of periodic repayments. Due to themonthly repayments, theresidual debt and the monthly interest payments decrease over time. Thistype of loan can optionally come with a grace period, during which only interest payments are made anda higher fixed amount is paid during the remaining period. Another option is tomake a partial paymentat the end of the term.-Bullet loans, which are loans with periodic interest payments (usually monthly) and where payment ofthe entire principal of the loan is due at the end of the loan term. The debt amount as well as interestpayments remain constant during the term of the loan.-Full bullet loans, which are loans where payment of the entire principal of the loan and interests aredue at the end of the term.
1.Q: What is the minimum investment amount?
A: Investors can invest in real estate backed loans from €100 or a multiple of this.
2.Q: Which currency can I use to invest?
A: At the moment we only accept EURO for investing in real estate backed loans. We are aiming toaccept all currencies, including crypto currencies, like we do for the Max Property Group ShareCertificates, but this depends on the regulators.
3.Q: What happens if an investment fails?
A: When the fundraiser fails to meet their obligations to make periodic payments as defined in the loanagreement, Max Crowdfund will follow up. Periodic updates will be shared to inform investors about thestatus of the loan. To recover from default, measures like a change of terms can be proposed, but thisrequires the approval from a majority of all involved investors via online voting. In the worst casescenario the Max Crowdfund Security Agent will execute on the collateral for the loan and distribute theproceeds to the investors.
1.Q: What kind of security is required?
A: Any loan is backed by a first or secondmortgage on a least one property. The loan amount can be upto 90% of the market value with first or 70% with second mortgage. Depending on the execution valueof the property, additional collateral in the form of a business or private guarantee may be required.
2.Q: How is the loan paid out?
A: Once the cooling-off period has passed and at least the minimum amount is raised, predefinedpayment conditions are checked by Max Crowdfund. When all are met, the amount raised will be paidout minus the total amount (incl. VAT) from outstanding invoices for the success fee and optionallyadditional services. How this is paid is predefined in the loan agreement. For example partial paymentcan be to notary for purchasing a property and partial payment can be to fundraiser's bank account.
3.Q: Which projects are eligible for a loan through Max Crowdfund?
A: Creditworthy companies that are registered with the Chamber of Commerce are eligible for a loan.Max Crowdfund also mediates loans for associations, cooperatives andfoundations with a businesspurpose. The purpose of the loan is always related to property, either to develop, buy-to-let, buy-to-sellor bridging/temporary finance.
4.Q: What information do I need to provide for my loan application?
A: The followingdocuments are required to assess your loan application:
-The most recent financial statement(s);
-Recent appraisal report by a recognised appraiser not older than 3 months;
-Extract of the Chamber of Commerce registration.
Additional documents may be requested depending on the specifics of your loan application.