Frequently Asked Questions
Most frequent questions and answers
Finouse is a technology platform that allows people of all income levels to invest in companies called real estate investment trusts, or REITs. These companies select, buy, and manage commercial and residential real estate.
You invest with us – either a little or a lot. Your investment buys you shares of a company that owns revenue-producing real estate. The tenants in our buildings pay us rent every month, and the income we receive gets distributed back to our investors.
When you invest in Finouse REIT, you are buying shares of a company that owns revenue producing real estate. Our offerings currently concentrate in Commercial and Residential Real Estate. Finally, all Finouse investment offerings target annual yields between 8-20%.
Investments are made via bank transfers. If you indicate interest in investing, you will receive payment instructions via email and you are responsible to initiate payment to Finouse once your accredited investor status is confirmed. We typically can accommodate up to 5 business days to receive your funds. Please note that an investment is not considered complete until we have received your payment.
Minimums typically start around N30,000 at Finouse. We have both minimum and maximum investment amounts in each offering to try to accommodate as many investors as possible.
First, you’ll need to set up your account. To begin, click the “Sign Up” button on the homepage. After completing your investor profile, you’ll be able to participate in an investment offering. To make your first investment, simply login to the Finouse platform, visit the offering page and then click on the individual offering. Next, enter your desired investment amount, noting the investment minimum, and then click “Invest Now”. You’ll then arrive at a page finalizing how you would like to fund your investment.
Currently, active investments on Finouse are not liquid. Once your investment is complete, you cannot modify or cancel your investment for the remaining duration of the offering you have invested in. Your investment is considered complete after we have delivered countersigned investment documents, verified your accreditation status, and received your payment.
Should you decide to modify or cancel your investment before it is considered complete please reach out to us immediately, we will do whatever we can to help.
Currently, all completed investments on Finouse are not eligible for a refund. In the case of an emergency or extreme financial need, please contact investments@Finouse.com.
Management Fees: Finouse Management, LLC collects a management fee on all offerings, generally ranging between 1 – 4% annually. These fees are disclosed on the individual offering page and in the Operating Agreement and Investment Memorandum (SPV) or Series Note Supplement (BPDN) for each offering. As described, the displayed and advertised target return for all offerings is net of these listing and management fees.
The management fee is disclosed on the individual offering pages for each investment opportunity.
A SPV, or special purpose vehicle is an investment structure that is technically a subsidiary of the company that created it (Finouse). That means it is reported on a separate balance sheet, has a scope that is just a subset of the parent company’s activities and is financially independent of the parent company and from other SPVs under the parent’s umbrella. Essentially, each investment structured as an SPV is its own limited liability corporation (LLC).
Finouse acts as the managing member of each SPV, which in the simplest terms means we service and distribute the funds and inform investors of any important administrative matters. If any complications arise in the portfolio, Finouse, as managing member, will handle them.
The ownership of an SPV is split among all investors in the offering at a basis corresponding to your contribution to the deal. Similarly, when the borrower starts paying interest it is to the investors on a pro-rata basis on an agreed payment frequency.
For example, if the borrower is raising N10,000,000 and you invest N1,000,000 in the offering, you will own 10% of the SPV and the underlying loan. If the loan pays 25% profit per project, you will receive N250,000 profit.