WHAT IS THE MINIMUM INVESTMENT?
The minimum investment can change from one offering to the next, but is typically between R100,000 and R300,000.
HOW DOES SPROUD MAKE MONEY?
Sproud makes money from the real estate we own with our investors. This includes rental income & profits from the sale of properties.
WHAT TYPES OF PROPERTY CAN I INVEST IN?
Sproud purchases residential properties. This consists of apartments and portfolios of single family homes. The types of properties will be described in each investment opportunity.
WHAT IS A SECURITY?
A security is what you own when you invest in the stock market. It is the share of ownership in a company.
CAN I SELL MY OWNERSHIP?
While there is no public market to sell your ownership, it is still possible. Sproud must approve each sale and Sproud also holds a first right of refusal to purchase any ownership that is for sale. If Sproud chooses not to purchase your ownership, then we can assist in matching a prospective buyer within the private network to help facilitate the sale. Please refer to the offering documents and your legal counsel if you chose to sell your securities with Sproud, legal and accounting costs may be associated with a sale.
HOW DO I RECEIVE UPDATES ON MY INVESTMENTS?
As our partner, you will receive regular communication from us. You can review financial statements & performance updates each month, all online through your investor dashboard.
DO THE PROPERTIES HAVE DEBT?
We typically purchase our single family homes all-cash, only considering the option of long term debt after the portfolio is seasoned. Debt financing is an integral part of our strategy. The debt structure, if any, will be described in each specific investment opportunity.
HOW OFTEN WILL I RECEIVE INCOME FROM MY INVESTMENT?
Sproud disburses earnings to our partners quarterly or in accordance to each offering.
WHAT DOCUMENTS NEED TO BE SIGNED?
Each offering will have an “Investment Agreement.” This document will be signed online during our easy 3 step investment process.
WHEN AND HOW DO I GET MY INVESTED CAPITAL BACK?
Sproud defines a targeted hold period for each investment. This indicates the amount of time you should anticipate it will take to receive your principal investment back. The hold period is not guaranteed due to a number of different factors including an ever changing economy and unpredictable fashion in which opportunities may present themselves. It is Sproud’s job to make decisions to optimize each investment. A popular way for investors to receive their principal investment back is through the sale of the properties or a refinance loan.
WHAT ARE THE RISKS?
Much like all investments, investing in real estate involves certain known and unknown risks, uncertainties, and other factors and there is no guarantee of performance. It is Sproud’s requirement that each investor acknowledges and understands these risks and factors.
WHAT RETURN CAN I EXPECT ON MY INVESTMENT?
While each investment opportunity may be different, Sproud typically aims to deliver our partners double digit returns. That is, returns in excess of 13% per year. Each investment opportunity will include financial projections, prepared by Sproud, which are based upon our expertise and educated assumptions. While we like to provide conservative projections, it is required that each investor understands that past performance does not indicate or guarantee future results.
CAN I SEE THE PROPERTIES I INVEST IN?
All of the details for each property is made available to view online. Sproud extends a warm welcome to anyone interested in viewing our operation.