Why Invest Through Real Estate Crowdfunding?
Investing in real estate through SmartBantus’ crowdfunding platform offers you the opportunity to grow your wealth, much like the world's top 1%. What sets crowdfunding apart is the ability to diversify your investments across various properties with small amounts of capital, significantly reducing risk. In traditional real estate investing, putting all your money into a single property can be risky. As the saying goes, "Don't put all your eggs in one basket." With the increasing financial literacy among people, affordable investment methods are gaining momentum. SmartBantus has emerged as the easiest and fastest way for users to step onto the real estate investment ladder. Here's how investors benefit:
1. Investing in Nairobi’s Prime Properties:
With an entry point as low as KES 50,000, you can access some of Nairobi's finest real estate opportunities.
2. Interactive Dashboard:
SmartBantus empowers you to take control of your investments through an intuitive and interactive dashboard.
Access all the fees and regulatory documents related to the investment opportunity, ensuring complete transparency.
4. Hassle-Free Journey:
SmartBantus offers a seamless and hassle-free investment experience, allowing you to focus on your financial goals.
Why Invest In Real Estate With SmartBantus?
We are committed to democratizing real estate investment, enabling individuals to access this asset class just like the world's top 1%. We've achieved this by setting an incredibly low entry point of KES 50,000 and leveraging empowered technology. Our specialized team ensures that only the best investment opportunities make it to the platform, and we continuously strive to enhance your overall experience while keeping you informed about the latest trends. Here are some of the valuable features that set us apart:
- Lowest Entry Point: Our minimum investment requirement of KES 50,000 makes real estate accessible to a broader audience.
- Investor Empowerment: Track the performance of your investments and take advantage of our interactive dashboard.
- Risk Reduction: Diversify your investments across multiple properties to reduce risk, all within a regulated framework.
- Regulation: SmartBantus operates under the regulatory oversight of the Nairobi Registra of Companies, providing peace of mind to investors.
- Digital Convenience: Our entirely digital process allows you to invest from anywhere in the world, eliminating the need for travel.
- Hassle-Free Investing: You don't need to be a real estate expert, and there's no personal property management required.
How Are Investments Structured At SmartBantus?
Once a property on SmartBantus's platform is 100% funded, we create a Special Purpose Vehicle (SPV) to establish a transparent ownership structure. The SPV functions as a separate company, and investors become shareholders in it. Each SPV is divided into 1,000,000 shares, with SmartBantus allocating your shares in proportion to your investment. For example, if a property is valued at KES 1 million, each share of that property is KES 1. Therefore, if you invest KES 50,000, you own 50,000 shares, equivalent to 0.05% of the property. In compliance with the Nairobi Land Department's requirements, the SPV is incorporated and referenced in the public register of FRC (Nairobi International Financial Centre), ensuring full transparency and regulatory adherence. SmartBantus structures investments this way for two primary reasons:
- Multiple Owners on One Title Deed: This approach allows multiple owners to share the same title deed.
- Risk Mitigation: In the event of SmartBantus ceasing to exist, this structure helps mitigate financial risks.
1. What is a Special Purpose Vehicle (SPV)?
An SPV is essentially a separate new entity, akin to setting up a new business.
2. Why is an SPV Needed?
SmartBantus leverages SPVs to provide pre-vetted property investment opportunities, transparent data, and the capability for investors to diversify their real estate portfolios through a secure and regulated platform.
3. How Does the SPV Protect My Interest?
An SPV is created to isolate and secure the property within a separate company, ring-fencing it from risks associated with the SmartBantus platform and other properties. The SPV is registered with the FRC, with ownership recorded in the public register, providing a clear legal trail of your property ownership.
4. Who Owns the Investment Property?
As an investor, you are the ultimate owner and beneficiary of the property in proportion to your investment amount. For instance, if you invest KES 50,000 in a KES 1 million property, you own 0.05% of that property, while the remaining 99.95% is held by other property investors. Together, you all earn dividends from the property. This approach allows for affordable investment and risk reduction, aligning with the saying "Don't put all your eggs in one basket."
5. Whose Name Appears on the Title Deed?
The SPV corresponding to the property investment is named on the title deed (ownership document). Given that listing dozens of names on a single title deed is not practical, the SPV's name represents your property. In reality, you directly own shares in the SPV, which is responsible for holding the asset, your investment property, and distributing dividends to you. To view your name as a shareholder, simply search the public register using the SPV's name, which typically starts with the initials "SB" followed by a hyphen and a number.
Handling Funding and Material Changes:
1. Funds Meeting or Exceeding Target:
If the total funding target is achieved and the investment round completes, you'll receive a share certificate representing your shares. However, if the target is not met within the specified time, all committed funds are returned without deduction of fees or expenses to your SmartBantus Account. You can then choose to use the returned funds for another property or withdraw them entirely from your SmartBantus Account.
2. Material Changes:
In the event of a material change that significantly affects the property's value, rentability, return, or the investment's value, SmartBantus will promptly disclose details of the change on its platform. Committed investors will be notified, and they must reconfirm their commitment within 5 business days. Failure to reconfirm within this period will result in the cancellation of the commitment. If a material change occurs after the commitment period, SmartBantus will disclose the information along with details of the change and any alterations in investor rights. SmartBantus will also outline the steps it plans to take in response to the material change.
3. Business Cessation:
In the unlikely event of SmartBantus ceasing to operate on a permanent basis, SmartBantus will follow a Continuity Plan (CP). If CP is initiated, all investors will be notified via email about the wind-down process. Investors will receive their current investment statements and be asked to decide whether to sell at current market levels or hold onto the property.
If the majority of property shareholders opt to hold the investment, the property's management will be transferred to a predefined Property Asset Manager responsible for administering the SPV, managing the facility manager, communicating with investors, and distributing dividend income. If, at the time of CP initiation, the majority decision of investors is to liquidate the investment, SmartBantus personnel will oversee the sale of the property and the return of funds to investors, with expenses deducted proportionately.
Investment Fees at SmartBantus:
At SmartBantus, we believe in full transparency when it comes to our fees. Our fees are structured in three different categories:
1. Entry Fee: 1.5%
When: This fee is a one-time charge upon entry into each property investment.
Why: It covers the costs associated with elements like escrow services, anti-money laundering compliance checks, property due diligence and processing, and third-party reports and valuations.
2. Annual Administration Fee: 0.5%
When: This fee is charged annually in December of each year and is payable pro-rata.
Why: It is allocated to renewing the investment vehicle used to protect your investment, complying with regulatory reporting services, and maintaining a secure digital platform. It's important to note that this fee is calculated starting from the day the property is transferred, not from the day we receive funds. This ensures that you pay when you earn, not when you start using the platform.
3. Exit Fee: 2.5%
When: This fee is a percentage of the sale price upon exit.
Why: It is directed toward the various legal and administrative requirements during the exit process. We've structured our fee to be weighted towards the end, aligning both our goals and yours—to make money.
Invest with Confidence:
SmartBantus opens the door to real estate investment for everyone, making it affordable, convenient, and secure. Start your investment journey with SmartBantus today and experience the future of real estate crowdfunding.
This detailed content provides a comprehensive overview of real estate crowdfunding through SmartBantus, covering its benefits, investment structure, FAQs, handling funding and material changes, and investment fees. It aims to offer readers a thorough understanding of the platform's features and processes.