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Deal fees explained

Investors are only charged fees at the point of an investment transaction.

As a sophisticated investor, we understand how much you value transparency in fee structure and cost. We are committed to limiting our fees to investors, by providing a clear and in-depth look at the fees we charge, what they cover, and how they impact you as the investor. All our projected returns displayed on the platform are nett of fees, with the impact of any fees already having been included in the calculation.

Our fee categories

We have two fee categories: an upfront initiation fee for every deal you invest in, and a success transaction fee on profitable returns (gains earned on your investment over time).

What are you getting in return for the fees you pay, and how does this differ from other marketplaces?

Initiation Fee

We charge an initiation fee at the start of the deal. If a deal you have invested in does not successfully close, you will not be charged this fee and will receive your originally pledged investment amount back in full. This fee covers three separate service categories:

  • Platform Services. This includes the costs of sourcing and completing due diligence on the deal, member services and investor onboarding, in-house operations, maintaining your transactional account (digital wallet and platform transactions), and the ongoing development of our marketplace technology.
  • Structure Services. Investing in a deal offshore can be challenging as an individual investor with the associated legal, financial and tax complications. We do the heavy lifting for you by creating a dedicated legal structure for each deal. The fees cover the costs of setting up and maintaining dedicated international Special Purpose Vehicles (SPVs) for each deal. This includes the costs of the lawyers, accountants, advisors, and compliance officers required to create and administer these structures for our investors. With these structures, we are able to provide you a simpler, hassle-free, cost effective and tax efficient investing experience.
  • Investor Acquisition and Marketing. As a global marketplace, we operate in many different countries, each with different rules and regulations on marketing deals to investors. To be able to accept investors from these countries, we are often required to work through regionally based partners that are licensed by their government regulators. A portion of the upfront fees cover the licensing and compliance costs making it possible to bring these deals to you in your country.

Success Fees

We have a percentage based success fee on returns generated from your investments. This fee is used to maintain the legal structures over the life of the deal, as well as expand our offering. The success fee is implemented for dividends, interest, and any capital gains. Unlike most REITS or funds, we do not charge an Assets Under Management (AUM) fee, and do not charge any Returns Fee if you are not receiving any returns. Simply put: we make money only when you make money. Through this principle we ensure that our interests are aligned with yours.

Fees that match our mission

Historically, investing in a primary market like the USA or UK required significant upfront capital and was limited only to citizens or institutions within those countries. Our marketplace is founded on the belief that investing in real estate should be made accessible, no matter your location or capital.

Core to our solution is creating globally-compliant investment processes and structures so our members can invest from anywhere in the world. Our fees cover the costs of developing and maintaining the secure, compliant structures and processes that enable our members to invest in these primary markets. Now, investing in USA real estate is as easy for a non-American citizen as it is for an American. And by sharing the costs of these structures among all our investors, we have made offshore investing far more cost effective than going it alone.

Fees that follow our principles

To keep the costs of these structures as low as possible for our investors, we remove any unnecessary middlemen, automate processes using smart technology, and adhere to our four key principles.

  • Our fees are transactional. You will not find any automatic ‘annual fees’ or ‘assets under management’ fees. All the deals you invest in are likely to have project management fees already built-in at the deal level by the project sponsor, where the ongoing operational costs of managing the real estate asset will be covered. Therefore, there is no good reason for us to charge an additional annual fee – so we don’t.
  • Our fees are specific. Not all deals are the same. Some of the deals on the platform require us to create a dedicated investment company through which you invest, so that we can give you access to a deal in countries such as the USA or UK. In these cases, we will have a structure component to the initiation fee. When a deal does not require a dedicated investment company to be set up (most often when the sponsor bringing the deal to the platform has created their own globally compliant investment structure), then we will not charge a structure component to the initiation fee, and the initiation fee may be less. This will be clearly displayed.
  • Our fees are transparent. Every time you invest, our fees will be clearly displayed. The fees will be broken down plainly for you to be able to understand what the fees are for.
  • Our fees are aligned with your interests. We are committed to our mission, which is to make Global Real Estate investing accessible to people from all parts of the world. As a marketplace, we know our business model is based on a small fee from a large group of people – our global member base. By keeping our fees as low as possible, we can enable you to invest in a larger, more diverse range of investments and create a truly global portfolio.

How do our fees compare to other marketplaces or investment options?

  • We do not charge assets under management fees. In many REITS and funds these can be up to 2% per annum.
  • We do have investor fees, where some other marketplaces don’t. This is due to us not being a simple ‘marketing’ marketplace. Our services include creating a globally-compliant structuring solution for investors, removing the need for investors to solve their own investment path for global investments.
  • Traditional fee structures for commercial real estate often include complex calculations based on ‘waterfall’ amounts and ‘carry’. We are committed to simple and transparent fees that are easy to understand.
  • At the point of each investment, our investment calculator shows you all the fees that will be involved through the life of a deal, and calculate the projected returns after fees, taking into account any taxes that may need to be paid in the country of the deal before returns can be distributed. There are no hidden fees or surprises.