Frequently Asked Questions
Common questions answered:
What is an equity investment?
The investor receives an unlisted amount of shares in a property development usually at an early stage in exchange for enjoying the profits pledged at a later stage. These shares are unlisted and therefore, it is not possible to sell the shares to fellow investors. See Investor Risks for more information on the risks involved in investing on the platform of Realty Africa.
How can I become an investor on Realty Africa?
Membership is free. There are two ways to sign up, either as a property developer or an investor and just follow the guidelines. See Investors Overview for more information on how to become a member
Is there a due diligence performed on the property developer and project?
Yes. Due to the perception of Africa by some foreign states, a general mistrust of new ventures in Africa by the locals and further a vast amount of schemes in the region, we at Realty Africa want to make sure that we can create the appropriate trust and transparency with our customers. Therefore, we thought it prudent to bring a renown third party, Deloitte, to perform the due diligence on both the property developer and the project. This gives more comfort to investors to make an informed decision. Other investigations include background checks of fraud, criminal, and credit checks. An assessment of the market conditions, the viability of the project and its bankability will also be considered. See Due Diligence for more detailed information on the due diligence process that is performed on each project.
What will my return be if I invest and get an equity stake in a project?
Most of the investments on the platform of Realty Africa are not straight equity investments. The investments are more considered to be secured lending offerings. In a situation where the investment is equity, the equity stake percentage or the shareholding on an investment is not determined by Realty Africa, this is determined by the specific property developer and is specific to each individual offering. It is up to the investor to access a proposal according to their risk profile if an investment is suitable for them or not. See Investor Risks for more information on the risks involved in investing on the platform of Realty Africa.
How secure are my investments?
No entity can ever guarantee an investment. An equity investment is not secured and depending on the performance of the company. Most investments on the platform are securitized lending. This means that you as an investor has recourse on the asset in case an investment is not performing. Each project goes through a thorough vetting process and your funds are actively managed. Funds are only made available to the project developer in stages (called drip funding) and completeness of each stage is checked on site before the next funds are offered. These measures minimize the investor risk for you as the investor as much as is possible. See Due Diligence for more detailed information on the due diligence process that is performed on each project.
How long will my investment be tied up for?
This varies per project and is clearly outlined in the offering on the platform. The offerings that are available to you very from simple projects to more complex projects with a development that can take one year to three years before completion. An example of a simple project could be the building of a housing complex that is offered for sale after completion. A hotel development that is operated for a number of years to repay investors would be regarded as a more complex project which asks for a longer commitment from you.
Who will communicate how my investment is proceeding?
What is the minimum investment?
What happens if a property developer does not raise the funding in the required three months or Six months time?
Can I pull my funds out of a project half way?
Is the website of Realty Africa secure?
What different types of property investment can I invest in on the platform?
What fee if any will there be?
What is an investor network?
What are the benefits of joining an investor network?
Joining an investor network gives you the opportunity to connect directly with the investor who may give advice about a specific project or coming projects. You get access to more exclusive information as you will be a part of that network. You will also be included in all the communication from that specific investor.