Our investment model is based on you buying shares (equity) in a newly formed UK limited company (SPV), soley set up to own the title of the property. The forecasted percentage return remains the same whether you invest £5,000 or £1,000,000+, as all funds are aggregated.
Your equity returns are determined by leveraging debt. When combining senior with mezzanine debt, they typically cover 90% of the overall project cost. Our equity investors cover the remaining 10% for 40% of the profits, which is how the forecasted return on your capital is determined.
When you invest, you own shares in the project SPV with your rights secured by a shareholders agreement and subsequent rights. Matters requiring consent are set at 81%, which means all parties (Developer, investors and JaeVee) have a say.
As a shareholder, you will receive a share of any return, whether it's the income, capital growth or sales profit in relation to your investment. Your exit is dependant on the developer achieving the exit set from the outset. If there are any complications JaeVee steps in and ensures it's achieved.
It helps property developers find and fund 100% of the property investments they source, it helps investors make their returns they wouldn't normally make on their own (without compromising on security and control) and it helps senior debt lenders back only profitable investments in a variety of accommodation sectors.View Property Investments
A property developer, will submit a proposal in return for 100% funding and project management support. JaeVee's investment team will assess the proposal using our predefined due diligence checklist (which you're able to see). We assess the yield sustainability, market analysis and alternative exit strategies. Upon the proposal being accepted, the property developer will work with our in-house project managers in delivering the project and achieving the exit strategy.
JaeVee is the facilitator, asset and project manager there to minimise risk and ensure exits are successfully achieved. It bridges the gap between property developers, senior debt lenders and equity investors. Investor security and control is achieved by all three parties (Property developer, investor and JaeVee) holding shares in the company, and entering into a number of documents such as a shareholder and development agreement. Should the property developer not perform, JaeVee is able to take over and finish the project.
Browse the JaeVee property investor platform and select 'Invest' when you see a project you wish to invest in. It takes minutes to add funds and confirm the amount you wish to invest (minimum £5,000). Once you've invested, JaeVee completes the rest of the requirements (such as the senior debt, insurance and legals) with its inhouse project management team assisting the property developer throughout. Monthly updates are uploaded to the platform thus allowing you to login anytime, anywhere to watch your investment come to fruition. Not stopping there, we support the property developer in successfully achieving the exit strategy.
Our model works by allowing property developers to build new homes and rental portfolios via a joint venture between ourselves and your capital.
The property developer holds 40% of the SPV, with their duties controlled via the shareholders agreement. In some circumstances where the property is being rented, there will be a management fee of 10%+VAT deducted from the monthly rent.
All our projected returns are shown net of fees so your forecasted returns will have already taken these costs into account.
This 5% fee covers the cost of raising funds, extensive due dilidence, deal structuring, compliance, corperate governance, and marketing. The fee is added to the total acquisition costs and forms 5% of any investment you make.
We retain 20% of the net capital growth or rental income. It is paid to us either at the end of the investment term or during (if rented). As each project is held in a separate SPV, corporation tax will be payable which is displayed on the feasibility study prior to you investing.
We act as the Employers Agent for all the design and build construction contracts entered into. We act on behalf of the client, which will be the SPV, as the contract administrator reviewing interim drawdowns, monitoring and reporting on the principal contractor and finalising accounts upon completion of works.
As with all property investments, there may be unforeseen costs but we do our best to mitigate these, including utilising the boost fund. The boost fund is 1% of the purchase price of the property which is held within the SPV bank account. Again, this fund is already taken into account thus not affecting the projected returns to you.
Sheringham, Norfolk, NR26
Ipswich, Suffolk, IP3
Wymondham, Norfolk, NR18
Forecasted Annual Yield
Tamworth, Staffordshire, B78
JaeVee is a trading name of Estateducation Ventures Ltd (FRN797322), which is an Appointed Representative of Prosper Capital LLP, which is authorised and regulated by the Financial Conduct Authority (FCA) (FRN453007). Estateducation Ventures Ltd is registered in England & Wales with company number 10172481. The registered office of the company is Studio 9 Netherconesford, 93-95 King Street, Norwich, NR1 1PW.
JaeVee © 2019 • All rights reserved.
Investing in JaeVee involves risk, including loss of capital and illiquidity and it should be done only as part of a diversified portfolio. Investments made through JaeVee are not covered by the Financial Services Compensation Scheme (FSCS). Please read our full risk warning before deciding to invest.
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