⏰ The project starts on 15/02/2024 14h00 ⏱ The duration of the project is 💼 Minimum amount to invest is 1000€
🤖 Review's summary
Analysis of the Marcq project by Raizers, analyzed by Grégory Vaur
The project is scheduled for 2024-02-15 14:00:00
Overall assessment: Average guarantees, consistent exit price, and renovations allowing for a refurbished house (Energy Performance Certificate C), but no pre-commercialization and low profit margin in case of a sale price reduction.
Project Details:
Type of project: Buy - renovate/build - sell
EUR 260,000 to be financed
Capital repayment: In fine. Interests: The first 6 months of interest are sequestered and paid to the investors within two months of the issuance date, then in fine.
Description of the Project:
This project involves the purchase of a 115 sqm house on a 40 sqm plot. The goal is to carry out renovation works (insulation, painting, etc.) and then sell the house.
Location: Wasquehal (Nord department) is a city with 20,000 inhabitants located 10 km from Lille and 8 km from Roubaix.
Strengths and Weaknesses:
✅ High yield.
❗ The yield is below the average yield (10.81%) of recent projects at Raizers.
❗ Loan to Acquisition (LTA): 167% - high.
✅ Loan to Sale (LTS): 66% - low.
Loan to Construction Cost (LTC): 88%
✅ Operator's commitment: 18% - high.
❗ First-rank mortgage with a mortgage coverage calculated on the acquisition price of 60% - low. ❗ Personal guarantee, but no information on the operator's net worth. ❗ Health of the company carrying out the operation: No financial statement available as the company is recently established.
❗ No pre-commercialization to date.
✅ Points of interest: The house is located in a residential area, within 2 km of a high school, primary school, bakery, supermarket, and doctor.
❗ The house is located near a cemetery and a railway track (approximately 300 m).
✅ Exit price (€3,435/sqm) is realistic and close to the average price (€3,226/sqm source: meilleursagents).
✅📉 Price per sqm increased by 1.8% in the past year.
❗ Pessimistic scenario profit margin: 5% in case of a 10% sale price reduction - low margin.
✅ Condition of the property: House in very good condition after renovation.
✅ Improved Energy Performance Certificate (from class E to C) after works.
✅ No urban planning risk.
❗ Renovation works (painting, insulation, flooring, electricity...) represent 30% of the total cost.
✅ A 17% contingency provision for unexpected works.
✅ 6 months of interest sequestered.
✅ Historical track record of the project sponsor: Experience in the building industry, with several projects in their name and third-party projects as a property developer.
❗ Financing in progress and operator's delays: 2 ongoing projects on the Raizers platform (€480,000 in progress, source: hellocrowdfunding.com).
Platform Quality:
✅ Raizers has a delay rate of 7.26% for delays exceeding 6 months - low.
✅ Raizers has a 0% permanent loss rate - low.
BONUS:
Enter the Sponsor Code MBS when signing up.
Get €50 after your first investment and another €50 after your second investment. So a maximum bonus of €100.
The Marcq project at Raizers offers an opportunity for investment in a house purchase, renovation, and resale. While it has average guarantees and a consistent exit price, there are some weaknesses such as the lower yield compared to the average, high loan to acquisition ratio, and low profit margin in case of a sale price reduction. However, the project benefits from the operator's high commitment and the house's location in a residential area with proximity to various amenities. The realistic exit price and the improvement in the Energy Performance Certificate after works are also positive aspects. It is important to note that there is no pre-commercialization at the moment, and the operator's recent establishment raises some questions about their financial health. Despite these considerations, the project offers a decent profit margin in an optimistic scenario and the property is expected to be in good condition after renovation. Investors should consider these factors and their own risk appetite before making a decision. Overall, the Marcq project presents an interesting opportunity for those willing to invest in the buy-renovate-sell strategy, but caution is advised due to some potential risks associated with the project.
Grégory Vaur Grégory, I am 26 years old and have been an investor in real estate crowdfunding, stock markets and crowd-lending for around 1 year. I trained myself by watching videos on these subjects. I am currently registered on the first brick, Clubfunding, Raizers...
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