The project Rue de Sèvres by Raizers

Review of the project Rue de Sèvres by Raizers

Review's score :

This review is proposed by Damien Cuyala on 18/01/2024

⏰ The project starts on 22/01/2024 14h00
⏱ The duration of the project is
💼 Minimum amount to invest is 1000€

🤖 Review's summary

Analysis of the Rue de Sèvres project at Raizers analyzed by Damien Cuyala

The project is scheduled to take place on 2024-01-22 14:00:00

Overall assessment: Good guarantee, very good location of the property, highly indebted company (point of caution), decent contribution from the operator. Good operator experience.

👷‍ Project type: Purchase - renovation/construction - resale

💶 EUR 620,000 to be financed

⏰ Capital repayment: In fine. Interest: In Fine
1y.

The operation is located at 29, Rue Pierre Leroux, 60, Rue de Sèvres - 75007 Paris and consists of the purchase and resale after complete renovation of an apartment. The asset is located in a sought-after neighborhood on the border between the 6th and 7th arrondissements of Paris.

✅ -> STRENGTHS ❗️-> WEAKNESSES ⚠️ -> Warning

✅ High yield.

❗The yield is lower than the average yield (10.82%) of recent projects at Raizers.

❗ LTA (Loan to Acquisition): 112% -> high

✅ LTS (Loan to Sale): 69% -> low

LTC (Loan to Construction Cost): 622%

✅ Operator commitment: 16% -> high.

Guarantee type: first lien mortgage

✅ If GAPD: equity amount: EUR 71,540

❗ If GAPD: net debt (EUR 1.3M) / equity (EUR 71,540) ratio > 2.5

✅ Mortgage coverage: 89% -> correct

❗ Health of the company carrying out the operation: Equity amount, net debt/equity ratio > 2.5

❗ No pre-commercialization

Location: Paris

Number of inhabitants: 2.16 million

✅ Points of interest: airport, train station, schools, shops, hospitals, etc.

✅ Estimated Exit Price: Realistic (Resale at the upper end of the local price at EUR 16,047/m2, property price at EUR 15,500/m2)

❗ Optimistic scenario margin: 10% -> decent margin

✅ Pessimistic scenario margin (+10% for works amount, -10% discount, +20% for works duration): 5620% -> high margin

✅ Property condition: Good (Complete renovation by the project operator).

✅ Street and neighborhood conditions: Good

📉 Prices in the city have decreased by -5.3% in the past year

✅ No urban planning risk

✅ Project operator's historical track record: 10 projects in Nancy

✅ Outstanding financing and operator delay: No outstanding financing

❗ Difficulty of works: Complete renovation of the property

✅ Realistic duration of works: Yes

✅ Geopolitical situation: France

✅ 7.26% of delays of over 6 months at Raizers -> low.

✅ 0% of permanent losses at Raizers -> low.

💎 BONUS

Enter Referral Code MBS when signing up.

€50 after the first investment and €50 after the second investment. So a maximum of €100 bonus.

➡️ The link is here: https://app.raizers.com/users/sign_up?sponsor_code=MBS

My Verdict

In my opinion, the Rue de Sèvres project at Raizers seems to have many positive aspects. The location is excellent in a sought-after neighborhood in Paris, with easy access to various amenities and points of interest. The operator has a good track record with previous projects and has made a decent contribution to the project. Additionally, the property itself is in good condition and will undergo a complete renovation, potentially increasing its value.

However, there are a few areas of concern. The company carrying out the operation is highly indebted, which could pose a risk. The yield of the project is also lower than the average, indicating a potentially lower return on investment. It is important to consider these factors before making a decision.

Overall, I believe that the Rue de Sèvres project offers a good opportunity for investment, especially for those interested in the Paris real estate market. With careful consideration of the risks and potential returns, it could be a profitable venture. Remember to use the referral code mentioned above to take advantage of any bonuses offered.

Historial rates of return Raizers

Investor votes results for the project: Rue de Sèvres

35 voters
👎46% 👍11% 🤷14% 🏳️29%
To vote :

Damien Cuyala
Damien, 41 years old, I am a business manager in nuclear valves, I also have a company in the distribution of everyday products in short circuits with the credo of "made in France". I started at a young age to learn how to invest in the stock market in dividend stocks, ETFs, and from 2021 on small cap equity strategies, and recently I have been learning about options. In June 2022, I started real estate crowdfunding and I have invested a little over 73 Keuros since then, my investments are distributed across the following platforms: ClubFunding, Raizers, La Première Brique, Upstone, Baltis. I attach great importance to spending time analyzing each project before making the best decision for my investments. Finally, I also have investments in crowdlending, mainly on Lendermarket to diversify my assets as much as possible.