Great return in the past does not guarantee the same return in the future. Your investment in the projects may increase in value, as well as decrease, and you might not get back what you initially invested.
There are a lot of existing real estate projects that cannot be implemented due to lack of funding, while at the same time large amounts of capital seek attractive returns.
Alongside a widely spread housing shortage, these insights will lead to the conclusion that traditional financial models are not fully sufficient. Tessins platform provides the opportunity, for individuals and companies, to invest in real estate projects without a middleman.
Once an investment has been completed, the investor has the opportunity to follow the project's development through the Tessin platform. How often updates are issued depends on the property developer, but normally, updates are made quarterly. The information is usually relatively short and transparent without any financial reports or key figures. A further advantage of investing in real estate is that you also have the chance to make an on site visit to property.
Tessin's platform consists of a technical tool and a digital bulletin board that real estate developers can use to market their business for potential investors.
Those interested in investing in real estate can explore the range of investment opportunities on the Tessin platform. When the investor has found an interesting project, the next step is for them to reserve shares in the project. A reservation is a non-binding interest notification to invest in a specific project. After a reservation has been made, the property developer (usually within one week) distributes more detailed investment material via e-mail to all who have reserved shares. A few days after the investment is distributed, the investor is offered the opportunity to complete their investment by signing an agreement or debenture (depending on whether loans or preference shares are offered) through the digital signature service, Scrive. The agreement is binding when the agreement or debenture is signed with BankID.
Shortly after the investor signs, a payment instruction will be sent indicating where the capital will be transferred and within what time.
Tessins role is to provide a platform that offers you the opportunity to invest in real estate. However, Tessin does not represent the property developer or the investor, does not have any direct or indirect connection, nor does it have any influence or responsibility for the project owner or the investment offer. Tessin does not make an assessment of the project owner or the investment offer, and therefor does not provide any recommendations or statements to any party regarding the investment offer.
Tessin offers the opportunity to invest in real estate, which means that only real estate related investment opportunities are marketed on the platform. Today, Tessin is only giving its platform to project owners who intend to market non-negotiable debt securities (direct loans)or preference shares in limited liability companies.
By investing in real estate through Tessin's platform, you have, in addition to the invested amount, also the right to receive the specified return at the end of the term. The refund shall be made according to the dates that are specified in the debt instrument.
On Tessin's platform, smaller companies with limited financial resources are usually marketed and property developers are commonly looking for top financing of projects with or without subordinated collateral. With that said, investment projects are usually associated with high risks and in most cases, the projects marketed on the platform are associated with risks that are not accepted by credit institutions or banks. However, the calculated return is often very high.
In case of insufficient experience regarding property investments, the investor should always talk to a financial advisor, investment adviser, lawyer, accountant, or someone with a similar background before making the decision to invest in real estate. The risk level in different investment projects varies, and the investor should be aware that an investment is always associated with the risk that all or part of the investment could be lost.
Read more about risks in general. The more specific risks on each project will be found in the investment material distributed by the project owner to the investors who have reserved shares.
Do you want to invest in real estate? Traditionally, one would need a lot of capital and contacts to invest in real estate, especially since the real estate industry is often referred to as a "relationship-based industry”. It is now much easier to invest in real estate. Through Tessin, you as an individual can invest in real estate in Sweden, together with other investors, and receive a return on your invested capital. We at Tessin want to make it possible for those would like to invest in real estate to meet the project owners who are seeking funding for their real estate projects. Investing in real estate is no longer dependent on the size of your network because with Tessin’s help and digital platform, you have the ability to personally get in touch with property developers and owners.
Even though there is a widespread housing shortage in Sweden, most real estate projects are not implemented due to a lack of funding. Tessin can help you meet project owners who are seeking funding and through our platform you are able to choose to invest in their projects along with other investors. After you have chosen a particular real estate project to invest in, the project owner will then be able to complete their project thanks to the financing that your investment provides. The advantage of investing in real estate is that your investment will be used in a specific project. You will be able to follow the investment through Tessin’s platform, where the project owner will share information on how the project progresses. Investing in real estate through Tessin usually yields a higher return on your invested capital but this also means a higher risk. Please keep in mind that all types of investments involve risks, and your invested capital can be lost. Read more about it here Crowdfunding in Sweden.