Option A

Working Professional seeking to invest in real estate can buy an investment apartment in Midrand for R700K in his/her personal capacity, however needs to come up with a 10% deposit, know how to pick the right investment and bear the risk alone.

Option B

Creating a pool of capital from different investors that have a longterm outlook lowers individual capital commitment than A. Investors own shares into the Real Estate Private Fund and are legal shareholders of the properties acquired.

The Fund Itself

This fund provides you entry level access to real estate asset class with rental income and capital appreciation and diversified financial risk.

Fund Investment Strategy

Acquire entry level new residential apartments/ student housing ; this gives you direct ownership unlike JSE listed property companies. Our Real Estate Private Fund will conduct property acquisitions, management and source debt financing on behalf of the investors.

  • Investor Monthly Capital Commitment of minimum R 1 000.00 Monthly / Lump-sum
  • Investor Target Yield of 11-14% annually
  • Investment analysis report will be provided before any acquisition for comment/feedback
  • Exit Strategy: Disposal /Refinancing of property after 3-5 years to recycle real estate assets in the fund.

Glossary

  • Loan to Value Ratio The loan-to-value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage. Typically, assessments with high LTV ratios are higher risk and, therefore, if the mortgage is approved, the loan costs the borrower more.
  • Real Estate Investment Investment real estate is real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence.
  • Real Estate Equity Fund Private equity real estate is an asset class composed of pooled private and public investments in the property markets. Investing in this asset class involves the acquisition, financing, and ownership (either direct or indirect) of property or properties via a pooled vehicle.
  • Property Crowd Funding Property crowdfunding platforms allow investors to pool their money so that together they can buy a house, and everyone gets a share based on how much money they contribute.
  • Property Acquisitions An acquisition is a corporate action in which one company purchases most or all of another company’s shares to gain control of that company.
  • Financial Independence Financial independence is the status of having enough income to pay one’s living expenses for the rest of one’s life without having to be employed or dependent on others. Income you earn without having to work a job is commonly referred to as passive income.
  • Commerical Real Estate Commercial real estate is any non-residential property used for commercial profit-making purposes. Commercial real estate includes stores, malls, office buildings, and industrial parks
  • Residential Real Estate Investment real estate refers to any residential structure owned solely for the purpose of generating investment returns, either through rental income or through market value appreciation
  • Landlord The owner of real estate, such as a house, apartment building, or land, that is leased or rented to another person or entity, called the tenant. FOR EXAMPLE JENGA PROPERTIES
  • Tenant A person or group that rents and occupies land, a house, an office, or the like, from another for a period of time;