Frequently Asked Questions
b) An investor will be required to complete an online questionnaire that will allow Fundscraper to assess the suitability of investments and to fulfill KYC, KYP responsibilities.
b) Fundscraper also checks with other third party databases to ensure that the identity provided to Fundscraper is accurate.
b) This ensures project budget control and that any spend is monitored to the minutest of details thereby preventing the potential for misallocation of investment capital.
b) For equity investments, Fundscraper will always ensure that the investment is tied to a direct interest in the property itself.
b) You will get notifications of the progress of the project and be able to view tax reports and other documents on your personal investor dashboard. Our support team is standing by if you need assistance at any step of the process, or if you just want to say hello.
b) Our debt securities generally have a maturity date of 2-3 years but shorter term loans can be offered for periods of less than 1 year.
b) For equity investments, each project will have its own exit or return strategy and cash will be distributed as the returns or exit strategy comes to fruition, in the priority as stated in the offering documents and investment structure. Fundscraper plans to use a third party trust agent to process the payments, investments, and distributions.
– Borrower track record and experience in completing projects
– Borrower ID, credit score, and quality of borrower covenants including personal and corporate net worth statements
– Asset valuation through appraisals and other valuation methodologies
– Project budget and financial ratios review to ensure loan-to-cost, loan-to-value, and debt service coverage ratios fit within Fundscraper’s criteria
– Land title search and liens check
– Insurance review
– Site visit
– Environmental review
– Review of development plans and municipal approvals (if applicable)
– Review of progress billings (if applicable)
b) Preferred equity investments will continue to earn a preferred rate of return.
c) Some project investments will have an outside date where the sponsor company is obligated to complete the project and allow the investors to exit the investment. Should this not occur, the sponsor company will be able to exercise its option to extend the project duration or will raise additional capital to allow existing investors to exit.
d) Debt investments have a fixed maturity date and few options to extend without penalty. Therefore, the sponsor company will be responsible for paying the interest and principal on time, or else be in default of the loan.