Frequently Asked Questions

General Questions

Investors are buying equity and debt securities issued by sponsor companies. In the case of equity securities, these securities are limited partnership units which give the unit holder an ownership stake in the partnership company. The partnership company owns the equity or debt instrument tied to the project being financed.
Minimum investments depend on the project profile and capital raise. However, Fundscraper aims to create access to a broader investor base and we do so by targeting a minimum investment size of $5,000.
a) We are only allowed to accept registration from Accredited Investors or investors who intend on relying on prospectus exemptions to make an investment.

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.

a) During registration by investor members, we verify the identity of investors by comparing supplied names, social insurance numbers, addresses, and telephone numbers with credit agencies. We also verify and ensure that the particulars match the identity provided by the bank account given during signup or by validating a photo copy of government issued identification.

b) Fundscraper also checks with other third party databases to ensure that the identity provided to Fundscraper is accurate.

The Scraper™ Network is Fundscraper’s online social investing platform. As a member of the Scraper™ Network, investor members will be able to access our platform to review and make commitments to invest into exclusive real estate projects.
These are individuals or firms who are professional investors or viewed as experts in their respective fields. The Fundscraper platform tries to bring on Notable Investors and Key Backers so that individuals can co-invest with the professionals who have aligned interests in the success of the investment and who have conducted their expert due diligence on the projects.
a) Investments will be structured so that funds will be drawn down on a ‘progress draw basis’ from Fundscraper’s custodian/trust bank account where invoices by service providers, suppliers, etc. are provided and reconciled with a formal draw request in a standardized template from the sponsor company to the Fundscraper GP, which will be responsible for approving such progress draws.

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.

Members of the Fundscraper management team will have the ability to participate in the offerings subject to relevant securities laws. Fundscraper will always place investors’ allocation in priority to any member of Fundscraper’s staff.
a) The investment offerings provided on the Fundscraper platform range in security seniority and asset collateral. Each investment will have its own characteristics.

b) For equity investments, Fundscraper will always ensure that the investment is tied to a direct interest in the property itself.

Fundscraper aims to facilitate investments into all types of real estate asset classes such as residential, retail, office, industrial, hospitality, etc. Within these real estate asset classes, Fundscraper will source opportunities in all stages of the asset lifecycle from projects at the stage of raw land acquisition (with zoning imminent or in place) to projects under construction, close to construction start, or already income producing stabilized assets.
a) The first step to getting started is signing up. Signing up is easy to do, free, and does not mean you are committing to anything. Once your profile has been created, you will be able to browse our unique and exclusive listings and view detailed project information. If you choose to invest in a project, you will be able to view and sign all documents online.

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.

Securities purchased through the Fundscraper platform are issued pursuant to the rules governing the exempt market. Any resell of such securities must comply with these rules and any such resell may be subject to the prior written consent of Fundscraper. Subscribers wishing to resell their securities should advise Fundscraper and consult a legal adviser familiar with the exempt market rules.
a) Project investment time horizons generally range from 6 months to 5 years.

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.

a) For debt investments, cash will be distributed as principal and interest payments are collected on the debts, subject to normal processing periods (generally 1-3 days).

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.

Fundscraper will source projects that aim to raise anywhere from $500,000 to $20,000,000.
Since all types of investments will be structured and sold to investors as limited partnership units, every investor must annually declare the capital gain/loss, interest income, or dividend income as it accrues. Prospective investors should consult their own tax and accounting advisors.
Fundscraper employs a rigorous diligence process prior to underwriting debt investments that maintains exceptional discipline in how we structure the debt investments. At a minimum, the following is reviewed to ensure it meets our standards:

– 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)

It depends on the particular investment. The borrowing sponsor company may or may not be obligated to pay an early repayment fee. However, in some instances, a borrowing sponsor company will be obligated to pay an early repayment fee which will be distributed to the investors.
a) In the due diligence process, Fundscraper and the Investment Committees will source projects that will have enough buffer built into the project timeline so that there are allowances in scheduling to keep the investment horizon on pace.

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.

Funds are held in trust and are deployed to the project only after a minimum threshold of capital has been raised. If a minimum threshold of capital is not achieved, then all funds will be fully returned to investors, plus any interest that may have accrued.