Fintown operates as a real estate crowdfunding platform where people can invest in real estate projects by providing loans to property developers. On the other hand property developers can raise funding from a crowd of investors without asking banks for funding.

On Fintown investors can invest in residential real estate development projects or rental projects from the Czech Republic.

Investments are offered in the form of so-called mezzanine loans, which means that investors will get money only if the main creditor (most likely the bank) agrees to that or his liabilities are fully covered. This makes the product riskier.

When investing on Fintown you should evaluate two risks. The first risk is a risk of default meaning that the project owner will not be able to repay the loan on time.

The second risk is money loss during default.

Given that loans are in the form of mezzanine and most of the loans are not secured with financed property, if the loan defaults investors are most likely will lose money in full.

Read more about how Fintown is managing risk here - All you need to know about Fintown