Loan #571397 Commercial to Residential 10-Bed HMO Opportunity
As a professional landlord and investor, Micky Singh has identified a project which lends itself to a great opportunity for providing high quality and affordable shared housing in the format of a 10-Bedroom high end HMO.
Micky has extensive experience of property purchasing, below market value deals, rental prospects, refurbishment and refinance. WIth a large and diverse self-made personal portfolio, this is an opportunity to work together on our first venture and hopefully open doors with an aspiring investor/developer that will undoubtedly present bigger and better projects in due course.
The opportunity here is currently a detached commercial property and the intention is to convert from office use to residential use in order to provide an asset which provides a great financial uplift and a long term investment vehicle. Should the 10-bedroom HMO proposal be deemed unsuitable (with consideration to planning permission), then a number alternative exit routes are available including a family dwelling, multiple apartment dwellings or even refurbished commercial premises/offices. This therefore provides reassurance as a change of use is not deemed essential in order for the deal to financially stack.
Micky is seeking a working relationship with MaxCrowdFund as a bridging facility for a more personal and rewarding experience (as an alternative to bridging lenders/more popular crowd funders) to raise the purchase and refurbish costs for this project. The estimated time for completion is expected to be 12-18 months, after which the exit will be to refinance the property via a commercial buy-to-let mortgage.
Note from admin: since planning approval is expected to take another 3 months, we have lowered the minimum loan amount to € 250,000 which will cover the purchase of the property. All other loan terms remain as-is.
Update 14/5: We would kindly like to inform you about a few changes regarding the terms and conditions of the loan:
- Borrower, “Avanti Housing CIC”, provides a loan to its directors in private so that the intended property is purchased as presented and is converted in accordance with the purpose as stipulated in the loan agreement.
- As an added security, an initial mortgage is privately offered to the Security Trustee by the owners since it favours investors. The initial mortgage is therefore not provided by the company, as is currently stated.
- Under English law, the mortgage cannot exceed the principal sum of the loan (€ 267,800) plus all additional interest, penalties and costs owed by the borrower. It therefore remains the same in relation to the principal sum of the loan.
- The private security deposit of €125,000 is unchanged and remains applicable.
Investors can invest in real estate backed loans from €100 or a multiple of this. NOTE that there is a 0.1% fee to make an investment. As such you need to ensure you add this 0.1% when making a transfer to ensure you can invest the amount you would like to invest, i.e. if you would like to invest €10,000, you need to transfer €10,010 to your account on Max Crowdfund.
Because of the regulations in the Netherlands:
- A maximum of €80,000 applies per individual investor in total investments made on Max Crowdfund.
- If you have a joined account this is doubled to €160,000.
- Company accounts as well as Qualified Investors have no limits.
Please note, that Max Crowdfund can optionally set a maximum for a single investment regardless of the above.
You will be notified in case your investment(s) exceed(s) any limit.
On the Max Crowdfund platform you have your personal Max Crowdfund Current Account. You can top your Max Crowdfund Current Account up via various payment providers such as iDeal or by bank transfer. Provided your balance is sufficient, you can start investing in loan applications immediately. The maximum deposit amount allowed differs per payment provider, but is usually a maximum of € 50,000. If you supplement your balance via a bank transfer, please use the reference provided in the description with your payment. Please note processing your bank transfer may take more than a day, which may mean you miss out on the investment opportunity.
No. Investors must be over 18 and must have an approved account, meaning their Know Your Client (KYC) documentation needs to be submitted and approved and have a bank account linked to their account. Country-specific restrictions exist and certain nationalities may be prevented from participation in some investment products. This is to prevent money laundering, tax evasion and other illegal activities, in line with our commitment to regulatory compliance and transparency.
At the moment we only accept EURO for investing in real estate backed loans. We are aiming to accept all currencies, including crypto currencies, like we do for the Max Property Group Share Certificates, but this depends on the regulators.
By Dutch law you are allowed a 24 hour cooling-off period, which means you can either change or cancel your investment during this time without any fees charged. After the cooling-off period you cannot change or cancel your investment. You are still allowed to make a second investment. Multiple investments will be combined in one when a loan is finalised.
Yes, but you will need to have a joined bank account with your partner. If you have a joined bank account, you can request to register a joined account on Max Crowdfund. Once approved, the regulatory limit for investing will be doubled to €160,000.
You can only register a new bank account by making a bank transfer of any amount from that bank account. We only accept bank accounts that are held by you and are in your name.
If you only have one bank account registered, this will automatically be your preferred account. In case you have multiple accounts registered, you can select only one of those to be the preferred account. Funds in your Max Crowdfund Current Account that are not used for a period of more than 60 days will automatically be transferred to your preferred bank account.
When the fundraiser fails to meet their obligations to make periodic payments as defined in the loan agreement, Max Crowdfund will follow up. Periodic updates will be shared to inform investors about the status of the loan. To recover from default, measures like a change of terms can be proposed, but this requires the approval from a majority of all involved investors via online voting. In the worst case scenario the Max Crowdfund Security Agent will execute on the collateral for the loan and distribute the proceeds to the investors.
Loan terms summary
- Interest per annum 8.00%
Fully subscribed 267,800.00 raised
- Risk class i
- Expires Closed
- Target amount €350,000.00
- Profit share 0.00%
- Term 18 Months
- Payment frequency 1 months
- Loan purpose Bridging
- Type Bullet i
- Mortgage rank First Rank
- Total Loan Cover (TLC) 100.0%
- Loan To Value (LTV) 89.1% i
- Location United Kingdom
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