About Prosperty
Prosperty is a cutting-edge digital platform for real estate investing. It provides individuals with the opportunity to invest in a diverse range of properties. By leveraging the power of technology, Prosperty aims to make real estate investing accessible, affordable, and hassle-free for everyone.
Prosperty operates on the concept of fractional ownership, where investors pool their funds together to collectively own shares in a property. Through the website or app, users can browse and select from a curated portfolio of properties available for investment. Once an investment is made, investors become fractional owners and can benefit from rental income and property value appreciation.
Prosperty is in charge of operating the platform as well as identifying and managing investments on behalf of investors until the end of their Investment Term (i.e. until a property has been sold and capital returned back to investors).
This includes ensuring that all digital and other operations are running smoothly and in compliance and regulations, that assets are being identified and evaluated appropriately, and that investments are being executed and managed responsibly.
In addition to financial administration, we eliminate all operational headaches for our investors as they do not have to worry about tenant operations, leasing, maintenance or any technical requirements.
Our fees consist of the following:
1) For Commercial properties, we take 1% of management fees yearly and performance fees of 15% over 10% hurdle rate at the sale of the property.
2) For Residential properties, one time fees at the time of initial investment and performance fees of 15% over 10% hurdle rate at the sale of the property.
When you invest in a property on Prosperty, you are investing in the shares of an Special Purpose Vehicle (SPV) that will own the title deed to the subject property. All investors in a property will be issued shares in the SPV in proportion to the amount they invested. Please note all SPVs that hold title to properties bought through Prosperty will be administered by Prosperty over the full term of these investments. Please refer to the Terms & Conditions for more details.
When you invest in a property on Prosperty, you are investing in the shares of an Special Purpose Vehicle (SPV) that will own the title deed to the subject property. All investors in a property will be issued shares in the SPV in proportion to the amount they invested. Please note all SPVs that hold title to properties bought through Prosperty will be administered by Prosperty over the full term of these investments. Please refer to the Terms & Conditions for more details.
As a referral we will give you a bonus amount as per the Company's policy.
Investment related
Real Estate is a tangible and stable asset class that has been a leading performer of returns throughout history. It is a favorite among large institutional and High Net Worth investors for many reasons including:
- Growth in value over long periods of time and less volatility than public financial markets, offering stability in turbulent times.- Acts as a hedge against inflation and currency depreciation and a good long-term store of value.
-Productive asset that generates predictable income from rent.
- Enhances the quality of the risk-return profile of the portfolio when included in a diversified portfolio of different asset classes,
Yes, absolutely. Like all investments in Real Estate, investing in properties through Prosperty should be considered as long-term. Investors should typically have an investment horizon of at least 5 years. This is because the best returns on Real Estate happen over time, as you generate more income from rent (yield) and the market value of the assets grow (capital appreciation).
At Prosperty, we select properties that have attractive return potential over the long term, coming from both yield and capital appreciation. This is why all our opportunities have a 5-year recommended Investment Term. If you expect to need back your investment in the short term, our opportunities may not be suitable for you.
Prosperty aims to make investing affordable and accessible. That's why you can start with as little as 2.5 lakhs INR.
Share price refers to the value of each property share. It is determined by various factors such as the property's current valuation, discount offered, supply of shares, etc. When purchasing a property during an exit window you will be able to see various available share prices, each depending on the discount offered by the seller. When selling your shares you will be able to see the share price you are selling at, and learn more about how that share price was calculated.
The price of shares is determined by various factors such as the property's current valuation, discount offered, supply of shares, etc. When purchasing a property during an exit window you will be able to see various available share prices, each depending on the discount offered by the seller. When selling your shares you will be able to see the share price you are selling at, and learn more about how that share price was calculated.
Yes, you can sell your share anytime as there is no lock-in for the investors. Also, we will help you find a buyer for your share.
At Prosperty, we take transparency very seriously. All properties on Prosperty will have their third-party valuation report updated on an annual basis and made available to investors on the platform. You can at all times view the estimated market value of your Property's on your dashboard, which is based on the latest valuation reports of your properties. You can also track the performance/unrealized gain or loss on each of your investments. This gives all Prosperty investors accuracy and transparency on what their investment is worth.
Returns & Exit
At Prosperty, our job is to identify and secure the most attractive investments for you. We look at investments from a total return standpoint, taking a balanced approach that factors both yield from recurring rental income and potential capital appreciation into our selection process. We are also careful to balance the pursuit of high returns with value preservation and risk.
We aim to achieve a total Return On Investment (ROI) of up to 12-18% annualized over the property’s Investment Term (5 years).
The cash you will receive will be determined by the net yield of the property you invested in and the amount you invested.
Your share of the rental income of a property will be credited to your bank account directly.
At the end of the Investment Term, your property will be sold and your share of the sale proceeds (after deduction of all relevant transaction costs) will be distributed to you in accordance with your ownership in the SPV. At that stage, your investment will be considered redeemed (with gain or loss) and the SPV will be subsequently dissolved.
At the end of the Investment Term, you and all investors have the opportunity to vote on whether to sell the property or hold for another six months. The proposed sale of the property will be carried out at the market value at the time, as per the latest market valuation report, within a +/- 10 % bracket.
In the event that the Property has reached a market value such that the ROI is in excess of 30% (the “Threshold ROI”), Prosperty will immediately initiate a voting process amongst all the Investors on whether or not to sell the Property and realize the expected ROI. If a majority decision to sell the Property is reached, Prosperty will then be instructed to initiate the sale of the Property on behalf of the PC.
At Prosperty, you benefit from two types of returns:
1. Rental income:
Your share of the rental income of the property will be credited to your bank account.
2. Capital appreciation:
This is the amount by which your investment is increases in value over time. This will be realized when you exit your investment.
Projected annual property appreciation: 5-9%.
Exit windows offer an exit strategy for sellers and a buying opportunity for buyers.
They act as our secondary marketplace, where investors can list their shares for sale and others users can buy them.
For buyers, the Exit windows offer much more investment and diversification opportunities through access to previously funded properties, as well as potential discount on prime real estate.
Sellers A and B can dictate the price for their shares and offer a different discount at their discretion. Buyers see all available offers and have the option to choose if they prefer to buy shares from all offers/available lots at different prices.
When you create a sell listing, your shares are made available for buyers to purchase. It's possible that no one buys your shares. In this case, they remain under the ownership of the respective original owner/attempted seller, which in this case is you.
It is possible that buyers purchase only a few of your shares and not all. This is known as a Partial fill.
In such a case, any unsold shares remain in your portfolio and you will continue to earn any dividends or distributions associated with the asset.
Documentation and regulations
Once the property is fully funded, share certificates proving your ownership will be made available within 2-4 weeks. Your shares and Compulsory Covertable Debentures (CCD) will be alloted in your demat account within 4 weeks of the property getting registered.
As a regulated entity, we are required to do a background check on all of our investors. This is part of our Know Your Customer (KYC) process. This is to keep our platform secure from any fraudulent activity and aims to give you peace of mind that we are accountable to one of the leading financial regulators in the world.
In such a case, if the property is more than 80% funded, we may ask the seller to extend the fundraising period by up to 1 week as we aim to raise more funds. This is totally dependent on the seller of the property.
If the above does not occur and funds are insufficient, we will cancel the investments made in that property and release the money back into your Prosperty wallet. You may then either withdraw the funds to your primary registered bank account or decide to re-invest them into another property on Prosperty.
Every unit owned by Prosperty investors will have a designated Property Manager who is authorized by the Real Estate Regulatory Authority (RERA) and approved by Prosperty. The SPV will enter into a Management Agreement with the Property Manager. In case of a change in Property Manager, Prosperty will notify you accordingly, as well as details regarding the new Property Manager.
As part of our commitment to being fully transparent with our investor base, all properties offered on the platform will include a full 3D walkthrough, high resolution photos and inspection reports. However as we generally look to offer properties that are already tenanted, visiting those units can be difficult and impractical, especially with many investors in each property.
It is therefore not possible to arrange visits to properties.
Yes. Prosperty is required to keep all client information up to date.
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