Fee Overview

Transparent

The fees you see here are what you get and you will never be charged any additional or hidden costs. We promise to always be upfront and clear about our fees so you can make informed investment decisions and avoid any surprises.

Mutually beneficial

Our fees are designed in such a manner that allows us to earn only when you earn. This aligns our interests and goals and motivates us to give you the best return on your property investment.

Simple and easy to understand

Our fee is broken into two segments; namely those that apply to investors and those that apply to property owners.

Investor Fees

Investors are charged by way of management shares that entitles Crowdprop to a percentage of any economic benefits derived from a property. This allows us to earn only when your investment pays you and does not incur any fees upfront or when you’re not earning.

Management Fee
5% of Net Property Cash flows

Ensuring that a property is adequately managed is the key to generating the most out of your real estate investment. From the purchase of the property right up until it’s sale, Crowdprop takes care of the entire process for you so you can rest assured knowing your investment is working hard for you and is in good hands.

This fee entitles Crowdprop to the following:

  • 5% of net rental income
  • 5% of net proceeds from the property sale 

Services offered in return

It is our responsibility to ensure that each property is performing to it’s maximum potential. We will ensure that your property has a properly screened tenant in place, maintenance of the property is in order and improvements necessary to boost income is being attended to. In the case of a development we will ensure that timelines are being adhered to and no unnecessary costs are incurred.

Crowdprop will ensure that all financial transactions are in order and that your money is well taken care of. We manage rental income collections, payments of property expenses, distribution of income to investors, payment of taxes etc.

In order to provide the best service to investors, Crowdprop sources independent third party providers such as property management firms, maintenance providers and construction companies. We monitor these companies for you to ensure you have a completely passive investment approach.

Putting together a structure that caters for large amounts of investors requires ongoing administration, legal and compliance work to be done. This involves administering the SPV company, legal documentation, records management, FICA verification, investor reports and property insights. We facilitate this entire process to ensure that your investments are safely in order,  your money is secure and all compliance related matters are in order.

At some point in time you will want to exit your investment by selling the property to cash out on your investment. We market the property for you and take care of the entire selling process on your behalf to ensure you get the best possible value for your property.

Property Owner Fees

Property owners are charged based on the monetary amount that they are seeking to raise on their property. The Capital Raise Fee is what Crowdprop charges the property owner in return for successfully raising the money they require. The due diligence fee covers the costs necessary to determine the viability of their property.

Capital Raise Fee
5% of property Purchase price

Crowdprop provides property owners access to thousands of willing investors with ready to deploy capital that want to invest in your property today. In return for successfully raising the capital you require on your property, we charge a fee in the form of a management dividend to the property owner based on the amount that was raised. This fee will only apply if your property passes our due diligence screening process and the fundraising target has been reached. The fee will not apply if your property does not qualify for listing on the website or if the fundraising target has not been reached.

Services offered in return

The benefit of listing your property with Crowdprop is that you will gain access to thousands of investors that are seeking lucrative property investments on our platform. By offering the property to all these investors at once, we will get you the funds you need faster than dealing with a single buyer.

Crowdprop will ensure that all financial transactions between you and our investors are in order. We place the funds raised from investors in trust until such time that the fundraising target has been realised. We manage the entire property sale transaction and pay you the net amount that you have agreed upon. Giving you a hassle free and easy experience.

In order to attract the most amount of investors and ensure your funding target is met, Crowdprop will design and implement a complete marketing solution for your property that highlights the value your property will provide for investors.

In order for us to raise the funds you need through our innovative platform, we have to adhere to certain administrative, legal and compliance matters. This involves forming and administering the SPV company that will house your property for investors. It also involves legal documentation, records management, FICA verification processes, property reports and insights. We facilitate this entire process to ensure that your property is safely offered to investors and all compliance related matters are in order to protect all parties.

As part of our services we will review the information provided by you on the property and structure it in such a way that it will be a viable investment for our investors. Part of this process will determine if there are ways to maximise the return on your property and what can be done to achieve maximum efficiency and use.

Due Diligence Fee
Varies depending on nature of property

This fee is charged upfront to the property owner for the purposes of absorbing the costs of the due diligence process. This fee is dependent upon the type of property and its complexity and we will provide you with an upfront quotation before any work is done. The fee is reimbursable upon a successful crowdfunding campaign being achieved. If the campaign or due diligence process is unsuccessful the fee will not be reimbursed.

Services offered in return

Our team will be in contact with you to ensure that we receive all documentation required to properly screen your property and ensure that you are well aware of the entire fundraising process and what it involves. All information is thoroughly checked to ensure complete accuracy and transparency.

Our team will perform a physical site visit to determine the condition and location of your property. This visit will help us determine if the property is in good condition and whether maintenance is required. The site visit will also give us a good indication of how well the property is being used and whether any additional measures can be implemented to boost revenue from the property. In the case of a development the site visits will be more frequent to account for changes in the development process.

As part of our company policy we will perform certain background checks to ensure a safe and secure capital raise. We will also provide you with the documentation required for the services we offer and explain it to you so you understand the entire process. We manage all administrative functions and keep you informed so you know what is happening at every step of the way.

Crowdprop uses independent experts who are experienced in their fields so we can offer you the best service. Independent valuators are used to provide a fair valuation for your property and this report will be made available to you. Conveyancers and other service providers are used in the process as well to determine all that is necessary in order to offer your property to our investors. In the case of a development, we will appoint an independent quantity surveyor to provide us with an opinion on the information you have provided.

Crowdprop will utilise all the information provided from the property owner and the independent experts to determine the financial viability of your property as an investment. We will analyse property values, expenses and incomes to ensure that we achieve the best return on investment and make all this information available to the investor so that they can make an informed investment decision. We also consider historical and future rental agreements to ascertain the likelihood of rental expectations and performance.

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