Once the real estate transaction is completed (after all residential units have been sold in accordance with the Business Plan), the exit will take place. It represents the liquidation of the invested capital and the accrued return to investors (ROI).
But how does exit take place (along with the return on investment)?
If it is an Equity crowdfunding campaign, there are two options:
- if the investment has been made within the company carrying out the development (direct investment), once the transaction is successfully completed, the company will be put into liquidation and both profit share and invested capital will be distributed to investors;
- if the funding campaign is carried out by a company which does not develop the real estate transaction directly (company "A"), the amount raised will be invested in the company involved with the real estate development (company "B") - (indirect investment). Once the ongoing project generates enough funds to refund Company A, Company B will be able to return the invested capital to Company A. Then, upon completion of the real estate transaction, it will distribute the profit share. Company A will thus be put into liquidation and the profit share will be distributed among all shareholders, according to the statute.
If it is a Debt crowdfunding campaign, once the real estate transaction is completed, the Company that developed (directly or indirectly) the project will return to the investors, by transfer, the nominal value of the loan, plus interests, if these has not already been paid out during the campaign, depending on the investment conditions of each Offer.