The project Villeminot by Raizers

Review of the project Villeminot by Raizers

Review's score :

Score details

To assign the grades A and E, we use a Bonus/Malus system.
⚠️ Some criteria may be missing in the detailed list below.
⚠️ The scoring model is not suitable for all types of projects.
The total points for this project is 9

Criteria	Points
mortgage coverage	∅
optimistic scenario margin	∅
pre-commercialization	🟩🟩
track record	🟩🟩
location	🟩🟩
in the vicinity	🟩
yield	🟩
LTA	∅
LTS	∅
operator commitment	∅
sales price	🟩
permanent loss	🟩
late projects	∅
price trend	🟥
urban planning risk	∅
debt to equity	∅
debt to asset	∅

This review is proposed by Grégory Vaur on 07/04/2024

⏰ The project starts on 08/04/2024 11h00
⏱ The duration of the project is
💼 Minimum amount to invest is 1000€

🤖 Review's summary

Analysis of Villeminot project at Raizers by Grégory Vaur

The project is scheduled for April 8, 2024, at 11:00:00

Overall assessment: Low guarantees, experienced operator, decent pre-commercialization, rather realistic exit price, but weak operator commitment, significant work needed, and low margin in case of discount.

Project Details

Type of Project: Purchase - renovation/construction - resale

Amount to be funded: 200,000 EUR

Repayment: Bullet repayment for capital; annual for interests

Description

This project involves the purchase of a building for a garage. The goal is to add one floor to the building (from R+2 to R+3 with attic) and create 12 studio and T2 apartments to be resold as raw spaces.

Location

Reims is a city of 179,000 inhabitants located 47 km from Châlons-en-Champagne (via highway A4) and 65 km from Laon (via highway A26).

Evaluation

This project stands out for its detailed analysis, showcasing both positive and concerning aspects:

✅ High potential return
❗ Lower yield compared to Raizers' recent projects
❗ Weak collateral coverage despite the asset's second-rank mortgage
❗ Limited operator commitment
❗ Significant renovation work required
❗ Low margin in case of a 10% price discount
✅ Gat income
❗ Decrease in apartment prices by 10.5% over a year
✅ Realistic exit price
❗ Work represents 31% of total cost
❗ Operator's engagement at 10% is weak
✅ Operator experienced with 12 completed operations
❗ High Loan to Acquisition ratio at 170%
❗ High Loan to Sale ratio at 73%

Conclusion

Considering the weak guarantees, low operator commitment, substantial renovation needs, and slim margins in adverse scenarios, investing in the Villeminot project seems risky. While the operator's experience is a positive point, the overall project evaluation raises concerns about potential returns and risks for investors.

Historial rates of return Raizers

Investor votes results for the project: Villeminot

37 voters
👎73% 👍3% 🤷0% 🏳️24%
To vote :

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...