Frequently Asked Questions
Why commercial real estate?
Commercial Real Estate is an asset that is worth investing in mainly for the consistent returns and the advantage of multiple income streams. Even when there are vacancies, when a few tenants leave, the investor is not left without an inflow of cash.
There is always the advantage of a consistent inflow of money, especially in the case of multifamily and industrial real estate. Commercial Real Estate has a very high potential to yield financial results, as they come with higher rent and prices. Read on for the benefits of investing in commercial real estate.
Who all can invest?
Any Indian citizen or an NRI can invest with us. Investments from institutions are also accepted. Before proceeding with your investment, it is imperative that all standard regulations are followed
Note for NRI investors : NRI investors can only invest through an NRO or NRE Account or from a normal savings bank account in India, however, your interest distributions and sale proceeds will be credited to your NRO account from where you can transfer it to your NRE account. Please speak to your banker for a more detailed understanding of your specific requirements.
How do I start investing with Investorey
Register on Investorey, choose a property to invest through thorough assessment based on the metrics provided by Investorey. Once the decision is made our investment and partnership executive will reach out to you to process the completion of your investment
Is Fractional Ownership risky?
Yes, as with any investment model, though the risk profiling category is low as per this category of investment. Real estate investment inherent risks including but limited to liquidity and potential loss of capital. Please consult your financial advisor before making any decision
What is the difference between REIT and Fractional Investment?
| REIT | Fractional Investment |
|---|---|
| It is a highly regulated trust fund that limits the expansion of innovative growth models. | It is self-regulated, enabling expansion of the investment structures for investor requirements from balanced to income-generating assets. |
| The Trustee is responsible for holding the assets of the REIT in a Trusteeship for the benefit of unitholders | Investors are co-owners of the SPV against the investment amount whereas the property is managed as per an Agreement between Company and the SPV. |
| With a minimum asset requirement of 500 Cr, the REIT has a limited number of properties that it can undertake. | There is no minimum value that a property has to meet. Instead, the property is selected after rigorous due diligence and ascertaining the returns. |
| Pricing is subject to stock market fluctuations as it is publicly listed | Stable monthly income like traditional real estate investment. Not subject to stock market fluctuations |
| At least 80% of investments made by a REIT need to be in commercial properties that can be rented out to generate income. The remaining assets of the trust (up to the 20% limit) can be held in the form of stocks, bonds, cash, or under-construction commercial property. | All properties are pre-leased and revenue-generating. |
| REIT must distribute not less than 90% of the net distributable cash flows, subject to applicable laws, to its investors. | There is a complete distribution of distributable cash flows, which is calculated after deducting statutory fees and taxes along with our asset management fees. |
| Full valuation to be carried out at least once a year and half-yearly update of the same has to be carried out. | Monthly tracking of rentals and distribution of payment Half yearly valuation report live tracking of assets through analytics |
Is my investment safe?
Your ownership, governance, and compliance records are stored in public databases and government records. Your investment remains completely secure.
Can I invest in more than one property and have a portfolio?
We encourage a diversified portfolio. So, yes, you can invest in more than one property across locations, asset types, and investment tenures.
How does a property gets listed?
Property listing is the most important process and everybody takes it very seriously. A robust, data-driven asset selection process is followed for investors to make maximum returns on investments. Due to our stringent due diligence and evaluation process, only 2% of the total properties analysed get listed on our platform.An experienced team that performs thorough technical and legal due diligence before buying any property is in play whilst engaging with reputed firms to conduct due diligence on the property title.
What is the minimum investment?
The minimum investment is Rs. 25 lakhs. This may vary from opportunity to opportunity. Please refer to the individual opportunity to find the minimum investment price.
What happens if a property fails to be fully funded?
If for some reason a property on the platform doesn't complete its funding target, any funds that have been committed by investors will be reimbursed to the registered/verified bank account along with interest as prescribed in the Expression of Interest.
What are the KYC documents required to begin with the investment ?
Copies of the following documents will be required as part of the KYC process -
PAN Card
Address Proof (Aadhar/Driver's Licence/Passport).