Through Tessin, property developers can finance their property projects with crowdfunding. The loans transferred on the platform vary in size, normally between 5 - 30 million Swedish kronor (SEK).
"Since the beginning, we have financed over 100 real estate projects, ranging from the new construction of terraced houses to the acquisition of rental properties," shares Magnus Nilsson.
Magnus currently works as a transaction manager at Tessin and has extensive financing experience in the banking and finance industry.
"The advantage of turning to a new player in an old industry is the acceleration of the investment process. Instead of waiting several months for credit decisions and payments, it takes between three and four weeks to raise capital through Tessin. We have a careful credit process, use the same types of collateral as a bank, and are very keen on delivering quick service even though we cannot be a part of the deal."
A place for new financing solutions
On Tessin's platform, private savers can join together and invest in secured property loans in various types of real estate projects. Our investor base consists of over 42,000 registered members who have a great interest in innovation and real estate. Together, they have transferred more than 1.3 billion SEK to property developers across Sweden, which makes Tessin the largest platform for real estate investments in the Nordic region.
"One of the reasons we have grown so fast is that we have become successful at finding different types of solutions that fit the customer and other stakeholders in the business. This has enabled us to adopt a position that both complements and challenges the existing players in the market" shares Magnus. He further explains,
“At a time when banks’ strong austerity measures towards the real estate industry affect the possibilities of applying for funding, we offer private investors a unique opportunity to take over the banks' role. Real estate transactions will always require financing and we’re building a business that can thrive in various market conditions."
A large number of projects have been financed through Tessin. In many cases, there is one company behind several capital gains.
"We finance companies that run several parallel projects, or are looking for financing for different types of acquisitions," states Magnus.
"We see the fact that we have so many satisfied and recurrent customers as a proof that our concept works. We strive to build long-term customer relationships, which means that we can deliver a faster service and a better customer experience."
The advantages of raising capital through Tessin
Real estate developers in need of capital can turn to Tessin for a customized, versatile, and flexible financing solution without the requirement for repayment or interest payment until the loan's term is over.
Through Tessin, real estate loans are provided that relate to, among other things, processing, new construction, refinancing, and acquisitions. There is flexibility if you want to apply for funding through Tessin's network as a complement to a bank loan’s base, or as a stand-alone solution with only Tessin's members as investors.
"We are used to collaborating with banks and other operators. Our form of financing is not only suitable for small and medium-sized property developers, but has also proven to be a good alternative for larger established companies that want to accelerate the building completion pace," adds Magnus.
"We are currently working on developing larger types of capital sources, including our real estate fund, in order to meet the increasing demand for larger financing volumes. Today, we lead in finding financing solutions for real estate transactions of considerably larger amounts than ever before."
Behind Tessin is an experienced team with both the necessary experience and ambition to understand the business behind each property project. Knowledge within the company, and the willingness to invest among the platform's members, means that Tessin can offer financing solutions to companies with a higher loan-to-value ratio than a bank would traditionally accept.