Frequently Asked Questions |
Everything you need to know before investing: profitability, risks, taxation and performance explained in a clear and transparent manner.
General
URBIX is a Fintech dedicated to financing real estate projects throughout Spain. We specialize in channeling funds to promising real estate projects through equity investments and loans. Our mission is to offer attractive returns to investors and, at the same time, facilitate access to financing for developers.
Yes, URBIX's activity as a Participatory Financing Services Platform (PSFP) is regulated by Law 5/2015 on the Promotion of Business Financing of April 16, 2015 and other applicable provisions.
Our team of analysts carries out an intensive study of the projects sent to us by developers: only if they pass the filters set by URBIX are they published on the platform so that any registered user can invest in them. URBIX has a rigorous opportunity analysis process that includes several stages to minimize risk:
- Pre-screening: URBIX performs an exhaustive selection of real estate opportunities before publication. Several aspects are evaluated, such as location, project feasibility, quality of the developer and other relevant factors.
- Risk analysis: A detailed analysis of the risks associated with each project is carried out. This includes assessing specific real estate market risks, financial risks and any other factors that may affect the viability of the project.
- Monitoring and control: Once a project is underway, URBIX performs continuous monitoring to ensure that it is proceeding as planned. Project milestones, costs, and any changes in circumstances that may affect the final outcome are monitored.
These measures are implemented to ensure transparency and security in investments, minimizing the risks associated with each opportunity posted on the platform.
Individuals: In this case, it will be enough to provide your name and surname, address, e-mail and telephone number. In order to deposit money and invest on the platform, you will have to validate your account with our payment service provider Lemonway, providing a photo of your ID or NIE/Passport to verify your identity.
Legal entities: The basic registration process on our platform is quick and easy: just provide the full name of the legal representative, company name, address, VAT number, company e-mail and telephone number.
In order to deposit money and invest on the platform, you will have to validate your account with our payment service provider Lemonway, providing a photo of your ID or NIE/Passport to verify your identity, or if you are investing through a legal entity, the company's deed and a certificate from the commercial registry or the last tax payment.
In order to withdraw money from your URBIX account you must provide a document that proves the ownership of your bank account so that the payment entity, Lemonway, can verify it and proceed immediately with the payment.
Initially we have requested authorization from the CNMV to attract investors in Spain. At this moment we are waiting for the CNMV to grant us the Authorization to operate as a PSFP in Spain. Until the granting and implementation of the Authorization of Participatory Financing Service Provider, we only make marketing contacts with investors and real estate developers, but we do not carry out any type of transaction, nor do we accept funds of any kind.
The investors' funds are deposited in an account in your name in an external and independent payment entity called Lemonway, so the suspension of activity by URBIX would not affect those funds, which will remain the property of the investors.<br>In the unlikely event of suspension of activity by URBIX, there is an agreement with another entity to manage the investments and projects until their completion.
Investment
URBIX is aimed at any individual or institutional investor who wants to invest in the real estate sector.
- Individuals of legal age with Spanish nationality.
- Individuals of legal age in possession of a foreigner identification number (NIE).
- Any company with a Spanish NIF.
For natural person, of legal age, with Spanish or European Union nationality, with a valid Identity Document (DNI or Passport).
In case of investor outside the European Union must have a Foreigner Identification Number (NIE).
There are three investor profiles: inexperienced, experienced and professional.
By default URBIX, will manage the registration of a new investor, in the category of non-experienced investor. For this reason, before giving full access to the platform, a knowledge assessment will be carried out to determine what type of services (debt, equity) is appropriate in your case as a "non-experienced investor" and in the event that they are admitted, a series of warnings and risk warnings will be established in the event that they invest an amount greater than 1,000 euros or 5% of their assets (not including real estate and pension funds).
This type of investor will always enjoy a "pre-contractual reflection period" of four days, where he/she can revoke his/her investment without any cost or penalty, from the moment he/she confirms it from the platform.
Individuals who meet at least two of these conditions:
- Have a gross income of at least €60,000 or a portfolio of financial instruments, defined as including cash deposits and financial assets, exceeding €100,000.
- Work or have worked in the financial sector for at least one year in a professional position requiring knowledge of the operations or services envisaged, or have held an executive position for at least twelve months;
- Have carried out transactions of significant volume in the capital markets with an average frequency of ten per quarter during the previous four quarters.
Legal entities or SMEs that meet at least one of the following conditions: - Shareholders' equity of at least 100,000 €.
- Own turnover of at least 2.000.000 €.
- Balance sheet of at least 1.000.000 €.
URBIX has two main investment strategies: equity and debt.
Once your identity is verified and approved by Lemonway, you can deposit money into your URBIX account by bank transfer, credit or debit card or bank direct debit to your unique virtual IBAN generated by URBIX.
To make an investment, the first step is to deposit the desired amount in the wallet associated with your URBIX account. On our website you will find the investment projects that are under study: if they finally go ahead, the opening date and deadline are announced. This deadline marks the beginning of financing by URBIX users, allowing you to participate in real estate projects in a simple and transparent way.
The minimum amount of investment in real estate projects with URBIX may vary depending on the project, in each of the files you will find the minimum and/or maximum amount that is accepted for each investor.
Up to €5 million.<br>Law 05/2015, which regulates crowdfunding in Spain, establishes that no non-accredited investor may invest more than €3,000 in the same project published by a single crowdfunding platform. Also, it cannot invest more than €10,000 in a period of twelve months, in projects published by the same crowdfunding platform.
If you have any questions you can contact us at hola@urbix.es. We will be happy to help you. Also, you can contact us for specific investor issues at inversores@urbix.es or if you have any questions at soporte@urbix.es.
If a project does not reach the financing objective, the amounts contributed by investors will be returned within a maximum period of 5 days, at no cost to the investor.
If a project does not materialize after reaching its financing target, URBIX returns the funds to the investors through their accounts along with the early termination penalty, which has been agreed with the developer. This policy ensures that the funds are only used for projects that will actually be developed.
The projects we seek are primarily in the residential and commercial sectors.
This diversity of projects provides investors with the opportunity to participate in a wide range of real estate initiatives, tailored to their preferences and investment objectives.
Once you have found a project that interests you, and as long as you have a balance in your URBIX account, simply click on "Invest" and specify the desired amount. The investment is made directly from the web platform, eliminating the need for bureaucratic procedures or travel. This simple and efficient process allows investors to access and participate in real estate projects in a convenient and hassle-free manner.
Through a contract that is signed before a notary. It is not necessary for the investor to go to the notary appointment, since through the MANDATE contract agreed with the investor, URBIX takes care of all the necessary steps for the legalization of the financing operation.
Regulation (EU) 2020/1503 on European providers of equity finance services for companies does not establish limitations on investment based on the type of investor involved.
If the transaction so warrants, it is possible that a mortgage or a pledge of real estate may be made, if this is the case, the mortgage is constituted in favor of a security agent who receives a notarized mandate from the real estate developer. This security agent acts as a power of attorney, who receives an irrevocable power of sale from the real estate developer in the event that the terms of the financing are breached. This additional guarantee avoids the costs and time of a possible foreclosure.
The investment in any URBIX project is generally recovered when the property or all the units of a residential building, for example, are sold. Specific time frames will depend on the investment strategy:
- In the CrowdLending strategy, the target timeframe for payback is typically between 12 and 36 months.
- In the CrowdEquity strategy, the timeframe will vary depending on the project, but will generally be around 3 years. During this period, investors may be able to receive dividends generated by the income received, if the operation so considered.
It is important to note that these terms are objective targets and may be subject to variations depending on the specific circumstances of each project. Detailed information on the target payback period is provided in the fact sheet of each investment opportunity on the URBIX platform.
Profitability and Risk
As with any investment, profitability is not guaranteed and will depend on each project and market conditions.
The developers we work with set profitability targets for each project and our team of analysts study them to verify their viability.
In general, the target gross return on appreciation that we look for is between 10 and 15% per annum, with an execution period of between 12 and 36 months for the whole process.
These rates of return may vary depending on the amounts and guarantees provided. However, it is important to note that these numbers may vary according to the specific characteristics of each project. Remember that investment always involves risks, and it is crucial to make a careful evaluation of each opportunity before deciding to invest.
In CrowdLending, the profitability and repayment term are defined in the notarial contract and subject to the successful completion of the financing transaction.
In capital gain projects, there are three main risks:
- Time risk: it is possible that the developer may take longer than expected to bring the works to completion, either because his estimates were not accurate or because of delays in obtaining the building permit or the developer loan.
- Cost risk: it may happen that construction costs rise and cannot be passed on in the sale prices of the homes, affecting profitability.
- Commercial risk: it cannot be ruled out that the developer may take longer than expected to sell all the homes or may have to sell them at a lower price than estimated.
In debt projects, the main risk is default. If the developer is unable to repay the principal with interest, it may be necessary to foreclose on the loan guarantees and sell the assets to recover the investors' capital. In rental projects, the main risk is the tenant: it could be the case that the tenant abandons the leased asset prematurely and a new tenant has to be found, which could take time and require different conditions than those originally foreseen.
In the worst case scenario, these risks may result in total loss, partial loss or temporary illiquidity of the investment during the term of the project. It is essential that investors understand and carefully evaluate these risks before making investment decisions.
From the moment an investor formalizes its participation in a project, it is accepting the risk and profitability of this investment. Loans present the risk of not obtaining the expected return, lack of liquidity, possibility of dilution or even loss of the loan principal.
At URBIX we work to minimize the risks of the investors registered in our platform, analyzing and filtering exhaustively the projects so that we only publish projects that meet demanding criteria of quality and solvency that maximize the fulfillment of the commitments with the investors.
No, but all projects have guarantees to protect the investor and URBIX will take the necessary steps to execute the guarantees in case of non-payment.
Before publishing the developers' proposals, our team of professionals rigorously and exhaustively evaluates each of the projects submitted in order to minimize the investors' risks. For greater security, an additional review of the projects is also carried out by external and independent professionals of URBIX.
All the project documentation can be found in your private area. In addition, project updates are uploaded every three months by each developer to keep you fully informed of the progress of your projects. This transparency in communication will allow you to closely follow the development of your investments and make informed decisions throughout the life cycle of the project.