How does EasyProperties work?
Let’s break down the process of investing in properties through EasyProperties, offering a high-level overview of how it works.
Assessment. First, EasyProperties conducts comprehensive assessments of investment opportunities, meticulously evaluating properties through due diligence, market research, and negotiation to secure favorable terms for potential investors.
Legal stuff. Once a promising property has been identified, we initiate crucial legal procedures, such as establishing a Special Purpose Vehicle (SPV), drafting a prospectus, obtaining approvals, and preparing to issue shares. These steps ensure transparency and legality in every transaction.
Listing on the platform. The property is then listed on the EasyProperties platform, where investors can participate in Initial Public Offerings (IPOs) or purchase shares through auctions. Detailed investment cases and prospectuses are provided for informed decision-making. Each property listing will have this, so be sure to check out the details!
Rental management. Investors can then sit back and enjoy passive income through rental management services provided by EasyProperties. From rent collection to property maintenance and tenant management, our specialists handle day-to-day operations, ensuring a hassle-free investment experience.
Returns and long-term investing. Investors can expect returns through dividends and capital growth over the medium to long-term investment period, typically spanning 5-7 years.
IPO procedures and investor protection. During an IPO, the number of shares issued is adjusted based on demand, ensuring fairness for all investors.
Scenario 1. If an IPO is oversubscribed, shares are issued on a pro-rata basis.
Example:
The IPO funding target is R1 000. This represents 1 000 shares at R1.
You subscribe for 20 shares at a total cost of R20 (20 shares x R1 = R20)
Let’s say that when IPO closes, it is oversubscribed by 200%.
What happens is you are then issued 10 shares in the property which cost R10. The extra R10 is refunded to your EasyProperties wallet
Scenario 2. In case an IPO fails to meet its funding target, all received funds are promptly refunded to investors' accounts shortly after the closing date.
With EasyProperties, building a diversified property portfolio has never been easier. Through a streamlined process and transparent operations, investors can access real estate opportunities with minimal investment and enjoy long-term returns.