Each real estate project is assigned a risk rating by Crowdrealestate. This makes it easy for investors to compare different investments. A project's fixed interest rate is linked to the assigned risk rating. For example, a project with a risk rating of A gets a lower fixed interest rate than a project with a risk rating of D. This is because the risks at A are lower than at D.
Risk classification | Point total | Description | Fixed interest |
|---|---|---|---|
A | 21 - 23 | Defensive | 4% - 6% |
B | 18 - 20 | Cautious | 6% - 7% |
C | 15 - 17 | Moderate offensive | 7% - 8% |
D | 12 - 14 | Speculative | 8% - 9% |
E | 7 - 11 | Highly speculative | 9% - 11% |
The Crowdrealestate rating is made up of 7 risk categories. Each category allows a project to score a certain number of points, which are shown in the overview below. Based on the total number of points, the project's risk rating is determined. For example, a project with a point total of 15 is assigned the risk classification C. The structure of this classification is clearly shown for each project.
Mortgage right | Points | |
|---|---|---|
| 1st | As an investor, you get the first right of mortgage. | 5 |
| 2nd | As an investor, you get the second right of mortgage. | 4 |
| 3rd | As an investor, you get the third right of mortgage. | 2 |
| 4th | As an investor, you get the fourth right of mortgage. | 1 |
Loan to value | Points | |
| ‹ 25% | Total financing is a small fraction of the market value. | 3 |
| 25% - 75% | Total financing is a significant proportion of the market value. | 2 |
| 75% › | Total financing is an oversized portion of the market value. | 1 |
Match location with sector | Points | |
| Excellent | The location fits the end-user perfectly. | 3 |
| Good | The location connects well with the end user. | 2 |
| Not good | The location does not connect well with the end user. | 1 |
Bezetting | Points | |
| Occupied | More than 90% of the project has already been let/sold. | 3 |
| Partially | Less than 90% of the project has already been let or sold. | 2 |
| Empty | The project has not yet been let or sold. | 1 |
Project phase | Points | |
| Existing | Re-exploit existing property. | 3 |
| Redevelopment | Redevelopment property (major conversion). | 2 |
| From the ground | Completely new development. | 1 |
Track record | Points | |
| 15+ Million euros | Highly experienced. | 3 |
| 2.5 - 15 million euros | Experienced. | 2 |
| 0 - 2.5 million euros | Less experienced. | 1 |
Duration | Points | |
| 0 - 5 years | Short period. | 3 |
| 5 - 10 years | Average period. | 2 |
| › 10 years | Long period. | 1 |
Please note that the Crowdrealestate rating is used to give you as an investor insight into the key features of a project and does not count as Crowdrealestate's internal screening model. Each project has been extensively screened by Crowdrealestate prior to placement.
