TAG Real Estate Fund

Funds Required: Minimum Requirement: 500,000 € Euros or 50,000 TWERO

Maximum Requirement: 250,000,000 € Euros or 2,500,000 TWERO

 

Business Description: A mortgage fund providing first charge interest only equity release loans.

The Business

Clients will be homeowners, with existing mortgages, who wish to release capital from the value of their property for personal use. Loans will be made up to a maximum of 80% of the market value. Thus, equity released will be the difference between the existing mortgage which will be replaced by the new loan and 80% of the value. We are going to study the client’s capacity to both service monthly interest payments but and to redeem the loan also taking into account the capital amount of the client’s or clients’ life policy, (in the case of a couple). We will make a mortgage advance according to a formula agreed beforehand, by the client(s) and us.

Procedure

The client would pay the equivalent of an annual rate of 6.75% of the amount of the loan. This is a lifetime commitment because the client does not repay back the capital. On his death or that of his wife, the insurance company will pay back an amount equivalent to the market value of the property originally reported and accepted. The surviving spouse or the heirs will inherit the property free of any encumbrance.

6% will be used to pay the coupons attached to the mortgage bonds and the remaining 0.75% will be used to pay the maintenance costs of the FUND.

In order to avoid any problem with the supervisory authorities of France and Europe the following arrangements should be made:

  1. Incorporation of two companies in Cyprus in order to create an investment fund approved and regulated in Europe.
  2. Creation of a “sales and marketing “structure in target EU country – could bear the same name as the Fund and thus claim official membership of a group
  3. We will create either a local real estate holding company or a UK company for clients in order to integrate the real estate in the company against new shares. CLI’s company will issue a bond secured by the “pledged” shares of the company – which are themselves based on the company’s asset, real estate – the netbook value after taking into account the debt.
  4. The fund will block one year’s interest as a reserve to assist the client in the event of need and non-payment of monthly dues. Charges equivalent to an additional year’s interest will be deducted from the amount raised. The balance from the amount raised equal to the client(s)’s ability to reimburse will be left for the client. Clearly, we cannot lend any client more than 30 to 35% of their monthly income.
  5. On death and the pay out of the insurance  or in the case of a sale of the real estate – an amount equivalent to the market value mutually accepted at the beginning  would be paid to us – in case of sale the amount of the loan plus 2 years of interest would be paid.
  6. The one year’s interest guarantee would be released in favor of the client if it has been held for more than 7 years. Otherwise, it should be given to the investment fund.

Investment Fund

We believe this Investment will appeal to both Traditional and new Investors.

Traditional Investors

  1. To invest in an Investment fund regulated by the European Union and guaranteed by real estate based in Europe evidenced by bonds issued by each local real estate holding company or LTD company together with the pledged shares issued by the local real estate holding company or the LTD company.
  2. Invest in a fund that guarantees a lifetime return of 6% per annum, either paid monthly or reinvested in the fund: the possibilities of additional return paid whenever a client dies or buys back his property by paying the outstanding loan. In such case, the funds collected will reinject back the initial capital lent into the Fund to be reused once again and the difference (market value at inception less funds loaned to client) will be distributed among investors as extraordinary profits.
  3. Invest in a fund guaranteed by a life insurance policy on the head of the

borrower.

  1. Invest in a fund where at any time on the investor’s account there will either be funds in Euros equivalent to its initial deposit or the ownership percentage of the pool made up of insurance policies and the real estate pool via the bonds and stocks.

Digital Assets Investors

The fund will issue digital assets in the form of tokens. We recommend issuing 30 Million Tokens at € 10 per Token and thereby block the fund at potentially 250 Million Euros. The remainder is i.e. 5 million tokens to be shared between management and the ‘market makers’ as well as advertising organizations.

A token buyer – for € 10 or € 10,000 will receive a return based on the same criteria:

  1. a) Guarantee of lifetime payments of the 6% interest per annum payable on a monthly basis, or reinvested in the fund
  2. b) Whenever there is a debt repayment by one of the clients, the amount recovered less the amount lent at inception of loan period – either the market value of the property (death of client) or loan value plus 2 years interests will be divided by the total number of tokens issued and paid as ‘extraordinary dividends’ thereby guaranteeing increased demand for the token and creating an increase in its value,
  3. c) If the owner of the token wants to sell its token, it can do so and the new buyer will receive the initial guarantee – clearly, if the token is worth 100 € for example, the 6% will always be paid on the amount initially invested i.e. € 10.

The tokens will be purchased on the TWEX Exchange.

We shall ensure that the satisfactory protection of both types of investors is taken. The tokens will be regulated as Security Tokens issued by a regulated Fund acting on the premises that borrowers are not being put into any type of distress as the loan to income ratio will be a maximum of 33 %.

Notice & Disclaimer

This page does not offer personal advice, and the information referred to on these pages is not suitable for all investors. By clicking accept or continuing to browse these pages, you confirm that you are a person falling within the following categories of an appropriately qualified investor, and are therefore exempt from the general restriction on the communication of invitations or inducements to engage in investment activity on the grounds that you are, either; a high net worth individual, a sophisticated investor, an Investment Professional or a representative of a high net worth company, trust, partnership or association. If you are unsure whether an investment is suitable for your circumstances we strongly encourage you to consult an FCA/SEC or other Financial Regulator in your country of residence -authorized Independent Financial Adviser before committing to any form of investment.