Crowdfunding Platform - Urbanitae review

Investing through Urbanitae is the easiest way to invest in real estate, as it delegates the entire process of purchasing and managing properties to a professional. Moreover, investing in the properties we publish allows you to diversify your investment portfolio instead of concentrating it in a single property. You can invest with small amounts, which allows you to invest in many properties of different types and in different cities.

Urbanitae has a network of real estate developers with proven solvency and track records. These professionals select the best projects in the market to add to the platform, providing investors access to real estate investment opportunities backed by experts in the field. Diversification, accessibility, and collaboration with trusted developers are some of the key reasons to consider investing through Urbanitae.

In capital gain projects, there are three main risks:

• Timeline Risk: it is possible that the developer takes longer than expected to complete the works, either because their estimates were not accurate or due to delays in obtaining the license or the developer loan.

• Cost Risk: it may happen that construction costs rise and cannot be passed on to the sale prices of the homes, affecting profitability.

• Commercial Risk: it cannot be ruled out that the developer takes longer than planned to sell all the homes or may have to do so at a lower price than estimated.

In debt projects, the main risk is non-payment. If the developer is unable to cope with the repayment of the capital with interests, it might be necessary to execute the guarantees of the loan and sell the assets to recover the investors’ capital.

In rental projects, the main risk is the tenant: it may happen that the tenant leaves the leased asset ahead of time and it is necessary to look for a new one, which might take time and require different conditions than originally planned.

In the worst-case scenarios, these risks can lead to total loss, partial loss, or temporary illiquidity of the investment during the project term. It is essential for investors to understand and carefully evaluate these risks before making investment decisions.

1. Equity Investments:

   • Description: In equity projects, investors purchase shares in a property. A limited company is established to acquire the property, and investors gain entry into the company's capital through a capital increase. The investor's share is equivalent to their investment amount, entitling them to a proportionate share of the profits generated by the property.
   • Example: If you invest €1,000 in a project worth €100,000, you would own a 1% stake in the created company and be entitled to 1% of the profits.
   • Typical Projects: These projects generally involve residential and commercial real estate developments​.

2. Debt Investments (Crowdlending):

   • Description: In debt projects, investors provide loans to developers. The developer uses the funds to complete the project and repays the loan with a predetermined interest at maturity. These loans are often secured by the property being developed.
   • Loan Terms: The loan terms can vary, typically ranging from 6 to 18 months for shorter-term projects or longer for more extensive developments.
   • Risk and Returns: Debt investments usually offer lower risk compared to equity investments and provide fixed returns through interest payments​.

These investment options enable diversification across various types of real estate projects, including residential, commercial, and other segments, providing opportunities for both high returns and moderate risk​