Cash has been received with thanks. Impressive effort there on Mt Waverley. That's a good thing about your model - it targets a specific return for investors
and I suppose as soon as you can lock it in you should do so. Well done."
Amazing work! Fantastic outcome especially in a market full of passed-in results. I think getting back 20% will make everyone happy. When's your next deal going to be launched?"
Received the payout and everything went smoothly. If you have more of these 4 month deals, that would be fantastic! haha
I'm looking forward to working with you again in the future.
I stumbled across Estate Baron one day when trawling the net looking to invest in property, in particular property financed through crowd funding. Their interactive site was professional and easy
to use showcasing an array of new properties on the go. As a building designer I could see they had an eye for choosing properties currently in trend with the market and in well sought after areas. I was contacted by Mark Winslade a co-founder of Estate Baron who smoothed over the uncertainties I had as a first time investor through the means of crowd funding. The service was great, the contract was short and simple, but what I loved most was how Estate Baron allowed me to invest in property with only a small amount capital."
Estate Baron provides me with a great alternative investment to diversify my portfolio. The returns are competitive and the transactions are transparent and compelling. Looking forward to more investments in the future!"
What I loved about Estate Baron was the ability to invest with very small amounts in projects of my choice. There were no high pressure sales tactics and all the details were expained in a simple and transparent fashion.
Where else can I invest as little as $5000 and get a 10% return. And all of this in a blue chip area! Wish all property investing was as simple as this."
You can use this for raising equity, mezzanine funds. You can use it for acquiring land, doing permits, construction, sales etc. In short there is ample flexibility in terms of what and how you use crowdfunding as long as it is well documented and disclosed. Which is where we come in.
It can also be applied for Business funding as well.
How much money can I raise using this?
In theory you can raise an unlimited amount of money using this. It boils down to how many people are looking at your offer.
Can anyone including small investors invest in the offers?
Yes, we issue a Prospectus with full disclosure. So it is open to all Retail investors across Australia.
Can I offer a different rate of return based on how much people invest?
Yes, you can staircase the return based on how much people invest. So for instance someone who invests a million dollars can be offered a higher rate of return than someone who invests $5000
How much time does this take?
It takes us 2 to 3 weeks to draft the offer and get your website up. Typically if you provide us with the information needed on time we can move faster. After that ASIC takes 7 to 14 days as part of its exposure period during which the offer can be promoted but no money can be accepted. After this you can start accepting funds.
How much does this cost and what do I get in return?
We charge a one time fee of $15,000 for the tech setup and drafting of one prospectus and getting it cleared from ASIC.
After the offer is cleared by ASIC during the life of the project we charge $1000 per month. This includes website hosting, administration, any new features you may ask from us as well as cover of an Australian Financial Services License to operate the website.
There is no per project fee.
There is no fund raising fee.
You can do as many projects and raise as much capital you can using this process for the same amount of fees.
You should be aware of the following additional costs. We setup a Public Unlisted Company which costs $650 and prospectus lodging fee with ASIC is $2350. There is also a yearly audit which we estimate at around $2500 but you can engage your own auditors if you wish. These fees which go to the State are per project and separate from our costs.
Who has done this before?
Since launch in early 2017 we have been engaged by 7 Developer clients, some of whose websites are shown in the live examples section.
What rate of return is expected by investors?
Typically we recommend offering mezzanine or pref equity at around 10 to 12% annum. But what we also do is fix the return to an upper ceiling. For instance 20% over 18 months. But if the project extends beyond 18 months it is still 20%. This helps protect the Developer in case of delays and is safer than debt. As a Developer you should do your best to give the projected returns to investors as only then they are likely to reinvest and recommend to others.
How is this regulated?
We structure this as a Public Unlisted Company and Prospectus and provide full disclosure meeting all the requirements as needed for fundraising in Australia. If you approach a lawyer to do this you will probably spend hundreds of thousands for the same thing. We have reduced the costs by using templates and cookie cutter structures that we have done before. The team has been involved in several public ASX listings, drafting of Prospectuses and Product Disclosure Statements. We take our obligations under regulatory requirements seriously and help you understand and navigate and them well.