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Fintown is a P2P financing platform for real estate projects located in the Czech Republic, mainly in Prague and its surroundings. Fintown offers to invest in real estate development projects as well as rental investment projects starting from 1 euro. Fintown can be an interesting solution to diversify real estate investments in a country at the heart of Europe and outside the euro zone. The platform is registered in the Czech Republic.
Real estate prices in the Czech Republic have increased significantly in recent years. Real estate has withstood the covid crisis as well as inflation in 2023. The real estate price index in the Czech Republic increased to 214.30 points in the first quarter of 2024, compared to 212.30 points in the fourth quarter of 2023. The real estate price index in the Czech Republic has averaged 128.58 points between 2008 and 2024, reaching an all-time high of 219.40 points in the third quarter of 2022 and a record low of 93.60 points in the first quarter of 2013.
Source EUROSTAT.
For each project, an SPV is set up. Vihorev company lends to the SPV (company carrying out the operation) and also invests in the project. Vihorev finances itself through Fintown, which collects funds from individual investors. Interest is paid from the SPV to Vihorev, who transfers it to Fintown, who then transfers it to individual investors. This structuring is different from a traditional loan where the investor would directly finance the SPV.
The loans offered by Fintown are not backed by real estate assets, however, Vihorev company invests in real every estate projects for 20%-30%
The investor holds a simple fixed-rate loan. It is a classic debt instrument for peer-to-peer personal loans (P2P). They pay interest fixed at issuance according to a predefined periodicity until maturity.
The founders are Maxim Vihorev and Vladislav Siganevic. Maxim Vihorev has been working in Czech real estate since 2008.
Fintown is registered in Czeck republic and has no ESCP regulation.
The average expected yield of projects is 12%
Yields are calculated based on the projects analyzed on this site and not on all projects.
⚠️ The higher the yield, the higher the risk.
🚫 Fintown has no buy back guarantee
In P2P lending A buyback guarantee is a guarantee provided by a loan originator regarding a specific loan. If repayment of that particular loan is delayed by more than a specified number of days (usually 60), then the loan originator is obligated to buy back the loan.
⚠️ Information about delays of more than 6 months is not available for Fintown
The permanent loss rate at Fintown is 0.00%.
The minimum amount to invest is 1€.
Fintown has a very low minimum amount to invest
🌎 The financial income are taxable in the investor's country of tax residence.
In France, since January 1, 2018, income from movable capital as well as capital gains from securities sales are subject, when taxed, to a flat-rate withholding tax (PFU) of 12.8%, to which social security contributions of 17.2% are added, making a total rate of 30%.
However, you can choose, when declaring your income, for a global taxation of these income and gains at the progressive income tax rate by checking box 2OP. You may be exempted from the portion corresponding to the flat-rate withholding tax of 12.8% for income tax purposes if your reference fiscal income for year N-2 was less than €25,000 (€50,000 if you are married). When making your declaration, you have the option to maintain the choice for taxation at 30%, or to submit your capital gains to the progressive income tax rate (to which 17.2% social security contributions will be added).
➡️ Search for previous reviews of chez Fintown
A real estate crowdfunding operation involves several categories of risks:
➡️ Operational Risk: human errors, incompetence, material shortages, delivery delays, poor management, accidents on site, provider bankruptcy...
➡️ Technical Risk: unpleasant surprises during soil and foundation studies, pollution, thermal, acoustic issues...;
➡️ Administrative and Legal Risk: difficulties in obtaining a fully cleared building or development permit, administrative authorizations, Financial Completion Guarantees, Construction Insurance, or All-Risks Site insurance, compliance of sales documents, poorly assessed urban planning authorizations;
➡️ Financial Risk: poor cost analysis, budget overruns, lower profit margins, obtaining bank credit, etc.;
➡️ Commercial Risk: insufficient pre-marketing, insufficient local market study (prices, needs, location...), delays in lot sales (commercialization), neglected suspensive conditions, unfavorable market evolution, risky sales strategy, overly optimistic exit prices, etc.
Beyond the analysis of the real estate project itself, crowdfunding platforms examine the financial and operational strength of the companies participating in the operation, which also face potential risks, mainly financial.
The evaluation thus focuses on numerous criteria, including:
➡️ Legal and Financial: capital structure, ongoing disputes, income statements and financial statements, solvency, profitability, liquidity, level of equity, etc.
➡️ Operational: organizational chart, experience of the executives, history of successfully completed operations, quality of previous programs, reputation, etc.
➡️ Financial Statements: financial statements (balance sheet and income statement) of the operator must be analyzed to determine its financial health.
➡️ Fraud: The operator may file for bankruptcy fraudulently or abscond with funds, which is why guarantees on cash flows are necessary.
Even with good preparation, it is impossible to anticipate climatic events (flooding, frost, storms...), macroeconomic factors such as sudden changes in property prices or interest rates, high inflation, etc., or legislative changes (regulatory modifications, taxation changes...), or situations of war. These risks are difficult to control. It is essential that operators have taken out the necessary insurance and that sufficient financial margin is planned to cope with potential contingencies.
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