Digital lending helps the real estate Market. The Platform Engel & Völkers Digital Invest uses the momentum that the digitalization of lending has brought to the market. With new offers appearing a systemic approach to evaluation and tracking of investment becomes vital for professional investors.
It is a tale as old as the real estate business itself: Real estate developers never have enough capital at their disposal. Marc Laubenheimer and Tobias Barten have taken advantage of this fact. Together they run the company EV Digital Invest GmbH and its platform "Engel & Völkers Digital Invest”. With their company and as partners of Engel & Völkers Marken GmbH & Co. KG, they have gained access to a global network that is now active in over 30 countries.
Engels & Völkers Digital Invest gives project developers a new way of accessing equity and/or mezzanine capital financing. The approach is simple: after a successful assessment, the project developer receives a guarantee of full financing. Subsequently, the loan is financed via the platform (www.ev-digitalinvest.de/projekte) or via own vehicle. The Swiss company Mazars is advertised as being part of the credit check process.
For a network like Engels & Völkers, such a financing platform offers the opportunity to secure interesting properties for their sales operations. In the current rivalry for the best properties, this is a sustainable competitive advantage.
One of the most recent investment opportunities offered was a bridging loan for an apartment building in Obertshausen from where Frankfurt am Main can be reached in 30 minutes by S-Bahn. The interest rate of 5.3% p.a. for a term of five months seems attractive. However, such high yields usually have a reason and come at a cost. It is therefore advisable to check the developer and ask yourself at least the following questions: What is the company's history? Have the last financial statements been filed in the German company register? Have other development projects been successfully completed?
For a large number of potential investors on Engel & Völkers Digital Invest, this check seems to have netted positive results, as the full financing target of EUR 1.9 million was reached within ten minutes.
The digital brokerage of loans is able to create advantages for borrowers and investors. Investors have a variety of marketplaces at their disposal, all of which have their advantages and disadvantages. However, these options also create challenges in terms of transparency and information flow, especially for a diversified portfolio. At i2 Group, we solve this through a digital approach supported by our proprietary software. One of the key aspects is the multi-platform monitoring which enables a sound due diligence process as well as audit and accounting for all investments.
