—— On April 18, CrowdFunz opened its first investment and Fund project “CrowdFunz Fund 601” in 2016. It was favored by many investors on the day that the project was released and reached the expected target amount in just three days, ended ahead of schedule. Financing. After two days of review, the fund is scheduled to initiate its first dividend disbursement on May 1.
At the beginning of this new year, everything is born, and the opportunities for investment and financial management also usher in new vitality. On April 18, CrowdFunz opened its first investment and Fund project “CrowdFunz Quick Loan Fund 601” in 2016. It was favored by many investors on the day that the project was released and reached the expected target amount in just three days, ended ahead of schedule. Financing. After two days of review, the fund is scheduled to initiate its first dividend disbursement on May 1.
CrowdFunz Quick Loan 601 Fund is officially closing this week, and the investment portal is turn-off. The capital raised by Quick Loan 601 will be used as debt investment, providing the developer a $650,000 bridge loan to purchase the underlying property. The investment horizon of Quick Loan 601 Fund is 6 months, with an estimated annualized return of 9%; fund dividends are paid monthly. In the underlying project, the developer collateralized 2 properties in total value of $1.592 million.
Project Overview
CrowdFunz Quick Loan Fund 601 is a debt investment fund, offering $650,000 to the borrower for bidding on one underlying property.
The function of debt provided by Fund 601 is so-called bridge loan. Since it takes a certain time for the borrower to apply for bank loans or other financing channels to complete the application. Through the bridge loan, the borrower can apply for a short-term loan to alleviate the short-term capital turnover needs.
The loan originated by Fund 601 will be matured in 6-12 months, with a fixed annual interest of 9% (simple interest).
Fund 601 has financial claims on the following collaterals:
Property A – a developer’s owned multi-family house, and Property B – proposed bidding underlying property in Flushing.
The total market value of the two properties is about $1.592 million. The value of Property B is approximately $722,000. According to the lending term sheet, CrowdFunz Fund 601 will have the first lien on Property B. The market value of Property A is $1.2 million, and it currently has a mortgage of $330,000. CrowdFunz Fund 601 will have the second lien on Property A. If the borrower defaults, the proceeds from the sale of Property A, worth $1.2 million, will be used to repay $330,000 mortgage originated by the commercial bank first, and the rest will be used to repay the loan originated by Fund 601.
Funding Summary
During fundraising, CrowFunz held 2 off-line seminars to analyze and share the details of the project, and in addition, introduce current industrial trends of real estate development and investment in New York local markets as well as the booming sector of small private equity offering and crowdfunding in the states, helping audience know about industrial updates.
To successfully launch Quick Loan 601, the first fund offering on the platform, CrowdFunz team collected investor feedbacks and thought about client needs, trying to solve client’s issues during investment as soon as possible. Compared to traditional real estate investment, Quick Loan 601 financed the capital in short time, proving the flexibility and advantage of small private equity offering as an efficient alternative of real estate investing for investors and financing for developers.
We thank investors once again for their trust and support. We will live up to expectations and grow together with investors. For follow-up matters, please continue to pay attention to our platform.
