Legal protection
Together with our partner Deloitte company, the world leader in the sphere of juridical and consulting services, we have elaborated the necessary legal mechanism. Thereby we acquired a full legal status for all the transactions carried out on LevelCrowd platform.
The cryptographic technology for the most important documents
Each agreement or contract concluded within the platform is to be signed with an electronic signature, while the cryptographic protection technology provides for the encryption of all legally significant documents on rights and transactions with unique hash. This guarantees that once encrypted, all documents remain unchanged, making it no longer possible to forge them.
Real estate pledges
LevelCrowd platform serves as a pledgee of the real estate object, which supports the obligations of the obligor (the owner of the real estate) to investors in the amount of not less than 130% of the total amount of loans attracted. Thanks to this scheme, the risks of investors can be significantly reduced in the event of bankruptcy of the obligor or his failure to comply with the terms of the loan agreement.
How does it work?
How the high returns are achieved?
LevelCrowd platform offers investors a completely new technology, allowing them to create direct legal interactions between investors and owners of profitable real estate objects without intermediaries, in a simple and safe manner.
• Funds from investors are received by real estate owners through a loan agreement, and dividends on loans are paid by an obligor from the profit received as a result of the lease, renovation or construction projects implementation
• The technology we use on the platform allows us to identify the owner's (investor's) exact share of the income generated by the object of investment, and the pre-established algorithms accurately distribute dividends received from the monthly rental income.
• The direct investment mechanism has helped to eliminate most of the intermediaries that bridge the gap between the private capital and commercial real estate markets, creating new opportunities for investors to increase their returns by more than 11-13% per annum.
• LevelCrowd platform charges the obligors the lowest fees for its services. As for the investors, there is no commission to be paid by them. There are no other fees or payments required.
• Funds from investors are received by real estate owners through a loan agreement, and dividends on loans are paid by an obligor from the profit received as a result of the lease, renovation or construction projects implementation
• The technology we use on the platform allows us to identify the owner's (investor's) exact share of the income generated by the object of investment, and the pre-established algorithms accurately distribute dividends received from the monthly rental income.
• The direct investment mechanism has helped to eliminate most of the intermediaries that bridge the gap between the private capital and commercial real estate markets, creating new opportunities for investors to increase their returns by more than 11-13% per annum.
• LevelCrowd platform charges the obligors the lowest fees for its services. As for the investors, there is no commission to be paid by them. There are no other fees or payments required.
Crowdfunding – what is it?
It is a way of fundraising through an online platform where the people with great ides raise money for their project from individuals in various amounts. The main idea behind crowd-funding is that money is invested from one person to another. Crowd-funding can take many forms:
• Rewards-based – investing for non-monetary rewards (goods or services);
• Donation-based – investing for no consideration, for emotion;
• Equity-based – invested in exchange for equity (shares, real estate);
• Debt-based (P2P lending) – investing in a loan to recover not only the amount invested but also the interest.
• Rewards-based – investing for non-monetary rewards (goods or services);
• Donation-based – investing for no consideration, for emotion;
• Equity-based – invested in exchange for equity (shares, real estate);
• Debt-based (P2P lending) – investing in a loan to recover not only the amount invested but also the interest.
How does it work?
LevelCrowd platform enables users to grant direct loans to the owners of profitable real estate:
• Investor money is deposited to the owner's account and a loan agreement is signed.
• Interest on loans is paid to investors from the profit received as a result of the lease, renovation, or construction project implementation
Levelcrowd selects and places on the website projects to which investors are invited to invest according to the terms and conditions set out in the description. Investors are mortgaged with real estate and paid interest on the project, which is a guarantee that their investment will be repaid.
Levelcrowd oversees the borrower’s timely settlement with investors and fully represents the interests of investors. On the other hand, Levelcrowd is a great help for business as it mobilizes funding from a wide range of investors, manages paperwork, and provides a platform for easy reporting to investors.
• Investor money is deposited to the owner's account and a loan agreement is signed.
• Interest on loans is paid to investors from the profit received as a result of the lease, renovation, or construction project implementation
Levelcrowd selects and places on the website projects to which investors are invited to invest according to the terms and conditions set out in the description. Investors are mortgaged with real estate and paid interest on the project, which is a guarantee that their investment will be repaid.
Levelcrowd oversees the borrower’s timely settlement with investors and fully represents the interests of investors. On the other hand, Levelcrowd is a great help for business as it mobilizes funding from a wide range of investors, manages paperwork, and provides a platform for easy reporting to investors.
Who can be registered at the platform?
In order to be registered and accepted by the platform, you should be at least 18 years old, to be at full legal capacity and to have a bank or a payment institution account opened in the European Union, Norway, the United Kingdom, and/ or Switzerland.
What is Levelcrowd?
Levelcrowd is a crowd-funding platform, an intermediary between investors and those seeking finance. The investment opportunities provided by the Levelcrowd platform are always backed by real estate collateral. Levelcrowd raises money for real estate project development and other business loans, but in all cases the borrower pledges real estate as a guarantee to investors.
How do I start investing?
First you need to sign up as an investor on our platform. Then you need to visit your email account and activate your user account. Before you are allowed to start investing, you are required to send us an accurate copy of your government-issued identification document, fill in the required AML information and an appropriateness questionnaire. Transfer money to your Levelcrowd virtual account. Choose a loan you would like to invest in. All loan repayments and interest accrued is held on your Levelcrowd account.
How are dividends paid?
Dividends are transferred to the investor's account at the end of each period. For detailed information on the amount of profit generated by the object, please see the "Finance" tab in an object's card.
How are the investments paid off?
• Obligations on loans to investors are closed after the sale of the property. Herewith, investors are paid a part of the profit received as a result of a marginal deal. The average investment payback period is 9-12 months.
• Loan obligations can also be closed upon the termination of the loan agreement (information about which is specified in an object card).
• Any investor can also exit from the investment prematurely by selling his shares on the platform's internal exchange.
The internal exchange is a tool that provides the opportunity to buy and sell the rights arising from loan agreements previously concluded with the owners of real estate under the agreement of Cession.
• Loan obligations can also be closed upon the termination of the loan agreement (information about which is specified in an object card).
• Any investor can also exit from the investment prematurely by selling his shares on the platform's internal exchange.
The internal exchange is a tool that provides the opportunity to buy and sell the rights arising from loan agreements previously concluded with the owners of real estate under the agreement of Cession.
How do we work?
Levelcrowd selects and places on the website projects to which investors are invited to invest according to the terms and conditions set out in the description. Investors are mortgaged with real estate and paid interest on the project, which is a guarantee that their investment will be repaid.
Levelcrowd oversees the borrower’s timely settlement with investors and fully represents the interests of investors. On the other hand, Levelcrowd is a great help for business as it mobilizes funding from a wide range of investors, manages paperwork, and provides a platform for easy reporting to investors.
Levelcrowd oversees the borrower’s timely settlement with investors and fully represents the interests of investors. On the other hand, Levelcrowd is a great help for business as it mobilizes funding from a wide range of investors, manages paperwork, and provides a platform for easy reporting to investors.
Does registration on the Levelcrowd platform is free of charge?
Registration for natural persons (both investor and project owner) is completely free.
How do I create a LEVELCROWD account?
You can create an account by clicking on the button “Sign in” in the right-hand corner of the page and filling in the short registration form. Remember to identify yourself, because then you will get detailed information about the real estate project.
What happens if Levelcrowd fails?
Levelcrowd only acts as an intermediary, so there would be a direct investor-to-owner relationship in case the activity stops. As the project owner’s assets are pledged to the platform that, by law, represents the interests of investors, the assets will remain with investors.
Why does Levelcrowd ask for additional documentation to authenticate or fill out a customer form?
Crowd-funding platform operators and other financial institutions must comply with the requirements of the Law on the Prevention of Money Laundering and Terrorist Financing and properly identify their clients and implement the “Know Your Client” principle.
On this basis, Levelcrowd requests information from customers about their identity, activities and planned operations on the Platform, and requests the completion of a customer questionnaire.
We are prohibited by law from transacting with customers who have not provided us with the required information. Therefore, if the customer fails to provide the requested documentation after repeated requests, the customer’s operations may be suspended (e.g. for example, investing in projects, publishing them, suspending payments of benefits, etc. will not be allowed until the requested documentation is submitted), and customer information may be passed on to the responsible public authorities.
Your invested funds, interest payable will then remain secure and can be recovered as soon as you submit the requested information and/or documents.
On this basis, Levelcrowd requests information from customers about their identity, activities and planned operations on the Platform, and requests the completion of a customer questionnaire.
We are prohibited by law from transacting with customers who have not provided us with the required information. Therefore, if the customer fails to provide the requested documentation after repeated requests, the customer’s operations may be suspended (e.g. for example, investing in projects, publishing them, suspending payments of benefits, etc. will not be allowed until the requested documentation is submitted), and customer information may be passed on to the responsible public authorities.
Your invested funds, interest payable will then remain secure and can be recovered as soon as you submit the requested information and/or documents.
Are there any limitations concerning my residence, when registering on the platform?
Due to AML considerations, because of the specific of international regulations, we do not accept users from the USA.
What are the guarantees for my investments?
All investment projects are carefully selected before they are offered to our investors. The entire project study process is performed by at least 3 experts: financial analyst, business analyst, and an outsourced expert of the relevant branch of economics (the branch of the project). Thus, the project study is based on 6C model applied by different banks, which includes studies of Character, Capacity, Cash, Collateral, Conditions, Control. Each loan is secured with collateral. Loans are granted only for projects, which future value provides a safe exit route for investors in case the borrower might fail to meet loan payment schedule. Special Purpose Entity (SPE) - LevelCrowd Agentas, UAB holds all collaterals and executes them if loans have defaulted.
How is the security of investors’ funds ensured (while they are at the platform’s disposal)?
Investors funds that have been transferred to the platform, but not been lent to borrowers, are held completely separate from Levelcrowd’s own money on a segregated account. The funds are not a part of Levelcrowd’s assets, which means that they would not be available to creditors in the case of Levelcrowd insolvency. They are not reflected on Levelcrowd’s balance sheet either.
What happens if a borrower wants to repay the loan before the agreed loan period?
A borrower is allowed repay the loan earlier. In the case, the interest for investors will be calculated and charged based on the number of days the funds were at the borrower’s possession.
What happens if a borrower wants to extend a loan period?
A borrower can extend a loan period. Levelcrowd will clarify the reason of the extending before the decision. In the case the reasons are acceptable, the loan period will be extended. The interest for investors will be calculated and charged based on the number of days the funds were at the borrower’s possession.
What happens if a borrower delays repayment?
As soon as a borrower delays any repayment, Levelcrowd contacts it/they on behalf of its investors to find out the reason of it. If the borrower faces financial difficulties, Levelcrowd will try to find the best solution in addressing the problem and protecting the interests of its investors. Levelcrowd will cooperate with its debt collection partners and the Special Purpose Entity (SPE) to realize the collateral.
Are there any fees for making investments at the platform?
No. All expenses related to the loan process are paid by borrowers.
What is the minimum investment amount at the platform?
The minimum investment amount is 100 EUR.
What is the maximum investment amount at the platform?
The maximum investment amount is limited only with available (unfilled) amount for each active project.
What kind of investment projects are offered by the platform?
The platform offers 3 types of projects: real estate development projects, buy-to-let investment objects and other business projects. The type of the project is indicated for each project separately.
What is the difference between development, business and bridge loan? Does it make any difference to an investor?
Development loan is used to finance a development planning process or for development of a property itself.
Bridge loan (refinancing of liabilities) is used to meet current obligations before ensuring a permanent financing option.
Business loan is used to increase a working capital of an enterprise or to purchase fixed assets, generally.
In general, the loan type does not make any significant difference for an investor. It shows more “the nature” of a project.
Bridge loan (refinancing of liabilities) is used to meet current obligations before ensuring a permanent financing option.
Business loan is used to increase a working capital of an enterprise or to purchase fixed assets, generally.
In general, the loan type does not make any significant difference for an investor. It shows more “the nature” of a project.
Is it annual interest (indicated for each project)?
Yes, all the interest rates indicated are per year (per annum). That means, for example, if a project’s period is 9 months (9/12 of a year) and an interest rate is 11%, the calculation of total return percentage for the project will be: 11 /12 * 9 = 8.25%
Is it possible to withdraw my funds before the end of the investment period?
Levelcrowd does not offer the possibility to withdraw invested money before the scheduled repayment date.
What regulation applies to Levelcrowd?
Levelcrowd, OU (Limited Liability Company) is an enterprise, registered in Estonia. Crowdfunding in Estonia is not a subject to any specific law and does not require any special permit or license. Levelcrowd is not a finance provider, creditor or credit intermediary (as in Creditors and Credit Intermediaries Act), but a facilitator in financing obtaining. Meanwhile,Levelcrowd has passed through the AML procedure of Estonian Finance Intelligence Unit (FIU) and has obtained a license (FFA000380) for acting as a financial institution.
