What is Real Estate Crowdfunding?

Crowdfunding is the practice of bringing together multiple investors and pooling their investments in order to fund larger investments or projects.  

Real Estate crowdfunding allows finance to be collectively raised from several investors to fund the purchase or construction of a property. Each investor owns a percentage share of the property depending on the amount invested.

What is First One X?

First One X is a real estate Crowdfunding platform designed to make investing in investment properties around the world simple and accessible for everyone.

With First One X, capital for multiple properties can be raised quickly and investors can get instant access to the real estate market with smaller investment amounts. Investors collectively fund the purchase of property on a buy-to-let basis while the due diligence and legal administration are taken care of by First One X. 

Investor returns are then generated from rental income. In addition, capital interest can accrue over the lifetime of the property, and these gains are then returned to the investors once the property is sold.

How does First One X make money?

An once off administration fee of between 3.5-7.5% is charged on the investment amount, payable by the investor. 

There is an additional ongoing property management fee that covers the ground management and reporting costs for each property. This fee is also built into the investment structure and taken from the profits, not charged to the investor.

What am I investing in?

First One X offers real estate investments in residential real estate projects around the world. Investors collectively fund the purchase of property and returns are generated from rental income. 

Capital interest can also accrue over the lifetime of the property. These gains are then returned to the investors once the property is sold.

How are the investments structured?

Investors on the First One X platform collectively fund the purchase of each property through a unique registered company. Investors own a % share of the company depending on the amount invested.

Each investment is specific to the property and the company that owns the property. Rental returns are passed to the investors after relevant costs. After five years, the property is sold, returns and profits are shared between the investors. 

Each investment in a property on the platform is made via the purchase of shares in a special purpose vehicle which is a registered Company, created for the sole purpose of purchasing the designated property.

Investors have option to re-invest their original investment and profits to other properties.

How do I earn an income?

Monthly and annual rental returns are generated and distributed to investors equivalent to the proportion of the property owned. 
Dividends are calculated as the Gross Rent collected from tenants, minus property-related costs (such as management fees, insurance, maintenance and taxes). Rental dividends are returned to investors on a quarterly or annual basis to their member account. 
Additional capital gains from the sale of the property are returned at the end of the investment.

Can I buy the entire property?

Yes, entire property purchases are available through the First One X platform. Please contact one of our sales team directly on hello@firstonex.com or +27(0)10 500 4002.

Who takes care of the letting and management?

First One X are responsible for the ongoing management and administration of the property throughout the lifetime of the investment. From fees and insurance to property maintenance, until your returns are complete and the investment period is finished. 

Are the properties already rented?

Wherever possible, but not always. We try to ensure there a tenant is in place before the property is purchased so that investors receive returns as soon as they invest.

Who is responsible for maintenance or repair?

The First One X and local management teams oversee the running of all properties and ensure all property maintenance and repairs are solved quickly and efficiently. 

Are the maintenance costs of the property during the investment considered in the returns?

Yes, First One X build-in annual maintenance costs before calculating all returns. There is an additional maintenance reserve fund set aside for unexpected damages or repairs.

Is the rental income fixed for the whole investment period?

No, the rental income depends on market rates, local demand and other external factors. 
First One X negotiate the best rental rates possible and mitigate risk for investment returns wherever possible.

How are rental returns paid out to investors?

Rental returns are automatically credited, directly to investors’ Digital Wallets. Investors then have the option to withdraw funds to a bank account they have registered in their Investor Dashboard. Returns are calculated after all taxes, fees, management costs, insurance and other relevant expenses are deducted.

If the property is not sold after five years, does the investor continue to receive the rental return for the remaining time?

Yes, the investors have 100% of the economic rights over a property. All returns after expenses will be paid to the investors. Properties that take longer than expected to be sold will continue to receive any rental returns generated from the investment. 

Does the investor receive proof of ownership? Which document?

Yes, each investor is provided with a confirmation of ownership certificate and a share certificate confirming ownership percentage of each project.

Can I have my money back if the property is not fully funded?

Yes. If a property is not fully funded we offer all crowd funders the chance to transfer their investment to a different property or to receive a full refund on their investment.

How long does it take to close an investment property?

We cannot guarantee the time taken to close a property. It can take a maximum of three months. Investors start receiving their investment returns immediately when a property starts generating rental returns.

How can I monitor my investment?

Each investor account has a dashboard accessible through a login. The dashboard will provide news and updates on the properties, Dividends Received, Forecast Dividends, Property valuations and Total Returns generated.

How do I exit my investment?

Exit is through sale of the property after five years.

How is the exit managed?

First One X will put the property on the market for sale under the following conditions:
(i) The property is inspected and valued with reference to factors such as recent transactions and the condition of the property, adjusted for any potential liabilities. (ii) Once the property sale has completed investors will receive the dividend relevant to their share in the property.

First One X will manage and administer this entire sale process in the interests of the investor to maximise returns for investors. Third-party costs, such as legal fees, will be deducted prior to profits being distributed.

How long is the exit process?

Typically, the sales process is between 1-12 months. However, there is no guarantee of this as the sale could take longer.

How are returns generated?

Quartly and annual rental returns are generated and distributed to investors equivalent to the proportion of the property owned as dividends. 

Rental dividends are paid to investors on a quarterly or annual basis, dependant on each specific project, to their member account. Dividends are calculated as the Gross Rent collected from tenants, minus property-related costs (such as management fees, insurance, maintenance and taxes).

Additional capital gains from the sale of the property are returned at the end of the investment.

When do I start earning returns?

Investors start earning returns on a property immediately from the date that each project is closed. If the close date of the property is not the first day of a month, returns will be issued on a pro-rata basis for that month.

How do I withdraw funds from my First One X account?

You can withdraw funds from your First One X account anytime you want. Returns accrued are applied to your First One X wallet, similar to interest in a bank account, and can be withdrawn or re-invested at any time via the Investor Dashboard.

All payments are in the investment currency and your bank will convert the amounts at their specified exchange rate.

Once the investment has closed and dividends paid, investor authentication may be required. Eg. Bank statement.

Please note that charges may be applied to withdrawals. These charges are solely at the cost of the investor.

Will I need to put in further capital?

No, investors will not have to contribute further capital. All costs including bills and fees are funded from the Gross Rent. The risks of most large unexpected costs (such as flood or fire) are mitigated through property insurance.

Certain other costs, such as roof maintenance, are also forecasted and communicated via our website to investors at the point of investment.  To deal with this we either (i) raise a work provision during initial crowdfunding or (ii) set aside a certain amount of Gross Rent.

Is it possible to liquidate my investment early?

Real estate investments are illiquid, and it may not be possible to sell on your investment before the end of the term.

First One X is intended for investors who have a maximum term of approximately five years. 
However, we have adopted a liquidity plan where, although not guaranteed, investors may have a chance to obtain liquidity on their investment by offering it, privately through the platform, to people who would be interested to purchase their shares.

Will I receive statements?

First One X provides audited financial statements each year stating investor returns and these will be automatically uploaded to your dashboard for investors to access.

Should the investor pay any tax?

First One X do not offer any tax advice and each investor is responsible for their own tax declarations and payments.

Is my money secure?

Investing in real estate is not risk-free and your capital is therefore not guaranteed. First One X does what it can to mitigate the level of risk to our investors, however returns are not guaranteed.

Does First One X provide investment advice?

No. First One X, or First One X affiliates are not permitted to make any recommendations, solicit any offers to buy or sell any securities, or provide any investment advice.
First One X advises you to conduct your own legal, accounting or other due diligence review and to obtain investment and tax advice from your advisers before deciding to invest. You are solely responsible for conducting any legal, accounting or other due diligence review and should obtain investment and tax advice from your advisers before deciding to invest. Our support team does not make any recommendations, solicit any offers to buy or sell any securities, or provide any investment advice.

Does First One X provide any information to its registered users?

Our support team is dedicated to providing registered users with as much information as possible for their current and potential investments.  We provide certain information to our registered users for investments offered on our platform to assist them in making an informed investment decision. We also provide a client dashboard that includes information such as annual and monthly financial reports, project and market updates, videos and photos and relevant legal documents for each investment. 

What types of partners does First One X work with?

First One X has partnered with operators in an effort to generate as much value as possible for each of its investment opportunities.
Our partners who support our initiative are listed on our partners’ page.

What reporting is required?

First One X has no required reporting obligations, however, we seek to provide you with up to date information on each of your investments. 
The investor dashboard is where all investment information can be found including financial statements and investment updates including financial forecasts and returns information. More information on project reporting can be found in the offering documents for each investment.

What are the potential risks involved?

Investing in real estate is not risk-free and your capital is therefore not guaranteed. 
First One X does what it can to mitigate the level of risk to our investors, however returns are not guaranteed.

First One X advises you to conduct your own legal, accounting or other due diligence review and to obtain investment and tax advice from your advisers before deciding to invest. You are solely responsible for conducting any legal, accounting or other due diligence review and should obtain investment and tax advice from your advisers before deciding to invest. Our support team does not make any recommendations, solicit any offers to buy or sell any securities, or provide any investment advice.

What security do you have for each investment?

Each investment offered through First One X is secured by the equity interests, direct or indirect, in the underlying real estate. Prior to acquiring a property, investors’ contributions are held in escrow until First One X has raised enough capital to close on the property. This ensures that your investment is always secured by the underlying asset that you’re investing in. The details of this escrow arrangement are explained in the offering documents for each investment.