How the developer makes money with the project
Step 1: Upgrading the real estate through refurbishment
The developer will use the funds from the crowdfinancing to upgrade common areas, refurbishing vacant apartments and prepare for marketing/sales.
Step 2: Profit through conversion to condominums/apartments for sale
The property will be upgraded and will be sold as individual apartments. The developer is expecting to achieve higher salesprices through sale of individual apartments compared to selling the property as one, without converting. With the profit, it will be possible to pay the investment amount and the interest back to the investors.