The Loan-to-value (LTV) ratio is a financial term used in the mortgage lending industry to express the ratio of the principal amount of a given loan to the value of the secured asset being financed. The term is commonly used by banks and lenders to represent the ratio of the total indebtedness on a property as a percentage of the total value. The valuation of a property is typically determined by an appraiser, but can also be based on an assessment of current market conditions and recent comparable sales. The higher the LTV, the riskier the loan is for a lender.
Category: Help & FAQ
Do you guarantee any returns?
No. Fundscraper’s role is restricted to dealing or trading in the various investments posted on its platform. It is not an investment advisor, issuer or guarantor of the deal you choose. Fundscraper’s role is to facilitate your investment as a licensed exempt market dealer. Of our several duties, we have a duty to insure you are qualified to make the investment you desire and to assist in determining whether the investment is suitable for you. Though our team of experienced professionals work diligently to source the best projects sponsored by proven real estate owners, managers, and property developers, there are risks present in every transaction. We provide a summary of the risk factors for each deal we host on our site and for a general overview of risk factors generally when investing in real estate we recommend you read the offering memorandum of Fundscraper Property Trust available on this site. An illustrative example of how investors earn an annualized net return is provided below.
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How secured is the capital invested?
In secured real estate investment (meaning the investment is ultimately backed by a security interest registered on land), keeping capital safe is the top priority. If your investment is through Fundscraper Property Trust, the average loan to value in the Trust’s aggregate portfolio is approximately 80%, meaning that there is a 20% equity cushion in the event something goes wrong. If you are participating in one of our posted equity investments sponsored by a third party issuer, though your equity investment is not “secured” the way a mortgage is, know our team of experienced professionals have worked diligently to source the best projects sponsored by proven real estate owners, managers, and property developers.
How do I contact Fundscraper?
For general inquiries, feel free to reach out to our client support team at +1 888-281-2235 ext.0 or info@fundscraper.com. Our office hours are Monday through Friday from 9:00 AM to 5:00 PM ET, excluding holidays. We’ll do our best to get back to you as soon as possible, which is typically within 1 to 2 business days.
For help investing, please book a call here with a licensed Dealing Representative or email us at info@fundscraper.com.
For troubleshooting or technical issues, please call +1 888-281-2235 ext.0 or email help@fundscraper.com. Our office hours are Monday through Friday from 9:00 AM to 5:00 PM ET, excluding holidays. We’ll do our best to get back to you as soon as possible, which is typically within 1 to 2 business days.
Why do I need to create an account before I can access listings in your marketplace?
We are subject to a legal obligation to determine whether persons who are interested in the issuer’s offerings are qualified to participate in them. When you create an account on our platform, we assess as part of our regulatory duties whether or not you are qualified to invest and whether the investment is suitable for you.
What are these assessment questions for?
Under our existing securities laws, we have a regulatory obligation to complete a know-your-client (“KYC”) assessment on every investor. This is required before any potential investor can fully view investment opportunities on our marketplace and before we can accept any proposed investment. The reasons are twofold. First, we have a duty to assess your financial condition and ensure the product in which you decide to invest is suitable for you. Second, our regulatory authorities require it in connection with Canada’s anti-money laundering, anti-terrorist financing and securities rules and laws.
Who is eligible to invest with you?
- You must be a Canadian citizen and/or resident.
- You must be 18 years of age to invest.
- You must reside in certain provinces depending on certain products.
- Your Investor Type (required by regulatory bodies) determines how much you can invest annually.
- Accredited: No Investment Limit
- Eligible: Invest up to $30,000/year
- Ineligible: Invest up to $10,000/year
Are there any risks?
Yes. Risk factors are generally described in every offering listed on the Fundscraper platform. With respect to offerings like Fundscraper Property Trust, an offering memorandum is provided and investors are especially encouraged to read the section of the offering memorandum entitled “Risk Factors”. Before you make an investment decision, work with a Fundscraper dealing representative to find out what is most suitable for you!
How do you source what’s in your marketplace?
We bring institutional quality investments sourced from best-in-class operating issuers and sponsors which have a successful track record. They are not hobbyists, but rather invariably real estate professionals of long standing.
- District REIT
- Nest Capital
- Centurion Apartment Real Estate Investment
- Mansouri Living
- Manzil
- Terra Firma
- Sud Group
Every offering posted on the marketplace is vetted through an multi-point checklist and approved by a credit committee with over $5 billion in combined transaction experience and decades of real estate underwriting experience.
Our review process includes:
- Real estate sponsor/issuer review (current balance sheet, proven track record of local geography, and expertise)
- Financial review of the project, detailing cost analysis and revenue/leasing projections
- Zoning potential review
- Demographic, economic, and market trends review
- Comparable precedent projects review
- Third-party peer reviews of environmental and other reports
What are your fees?
For Fundscraper Property Trust offerings, the only fee that impacts the investor is a fee that ranges between 0.5-2%.
All other fees (origination fees, renewal fees, and redemption fees) are taken care of by Fundscraper, all as more particularly described in our Offering Memorandum.
