It is important for the investor to thoroughly familiarize themselves with the investment material and the debt instrument (loan agreement), including the general characteristics of how the loan works and what characteristics it has in relation to the company in question.

When raising capital in the form of a loan, the borrower can provide various types of collateral for the loan, which is not possible when issuing shares, for example. The loans that are marketed will most often be subordinated, i.e. the lenders have collateral that comes after bank loans in the order of priority. The collateral for loans usually consists of a pledge of property or a guarantor for the loan. Mortgaging property means that the borrower transfers or pledges the property to the lender who, if the borrower cannot repay the loan, can sell the property. The most common collateral types found in loans marketed through the Crowdster.eu platform are real estate mortgages, second mortgages, share pledges and surety bonds. The list is not necessarily exhaustive and other types of collateral may occur. In each case, the investor must assess whether he considers the collateral to be satisfactory.

The main types of surety are simple surety and guarantor surety. With a simple surety bond, the lender can only make a claim against the guarantor after the lender has attempted to obtain payment from the lender through the courts. A guarantor surety is a guarantee “as for own debt” and means that the guarantor has the same legal position as the borrower with regard to the responsibility to repay the loan, i.e. the lender can direct its claim against the borrower and the guarantor who has money.

A mortgage involves the property owner registering a mortgage on the property as proof of the mortgage and then “transferring” it to the lender as security. Each mortgage has a so-called “priority” in relation to the part of the property to which the mortgage relates. If the loan is not repaid, the mortgage can be realized, which means that the property will be taken over by the mortgagee and sold at a foreclosure auction.

A share pledge (often referred to as a “share pledge”) means that shares in a company are pledged as security for a loan.

Crowdster.eu offers the opportunity to invest in real estate projects (New build or redevelopment, and primarily private residential), which means that only real estate related investment opportunities are marketed on the platform. At present, Crowdster.eu only provides access to the platform for European real estate projects where investors are offered to invest in construction financing for the individual real estate projects.

At Crowdster, your capital is lent to property developers who have solid European real estate projects with substantial financial coverage and need financing to complete their construction.

Crowdlending is a method where private investors lend their capital directly to individual investment projects to earn interest returns (yield).

The property developer gains the opportunity to complete their project and secure a profit. The investor receives a high return, typically 8-12% per year, with repayment usually after 6-18 months. Investors receive share pledges in the individual project company.

Investing via the platform is on a first-come, first-served basis, where investors are not guaranteed participation in a project until they make a payment. If a project is oversubscribed, the investors who did not manage to pay in time will have their deposits returned.

Crowdster.eu makes no recommendations, advice or guarantees in relation to any investments or projects.

It is the individual project owners/property developers who have full responsibility for the success of the projects and that the investors can get the budgeted and expected return. Before a project is published on Crowdster.eu, Crowdster.eu conducts an overall review of the project in order to minimize risk, including ensuring that material selection, assumptions and schedule are realistic and that there is sufficient room in the budgets if the real estate and financial markets should change during the construction period. Crowdster.eu only approves projects for marketing on the platform if the project has a minimum overcoverage of 25% - i.e. the budgeted sales price for the real estate project is at least 25% higher than the total budgeted construction and financing costs.

You will receive an email receipt, which will also be clearly visible in your dashboard on the Crowdster.eu platform when you are logged in, confirming receipt of your deposit with reference to project, amount received and date of deposit.

First we calculate how much interest you earn per day, then we calculate how many days the project has run. If the end date is known, we use this end date, otherwise we take an average of the duration defined for the individual project.(([Interest rate In Decimals] X [Investment amount]) / 365.25) * Actual Days'

Typically, the properties are sold during or immediately after completion of construction. The sales process varies from project to project, but typically  real estate agents will handle the sale. The sale price will be transferred directly to the project company's deposit account and will simultaneously trigger a repayment of the loan to the investors via the deposit account. In some cases, the properties are not sold after construction, but instead refinanced with a bank or other cheaper form of financing. The refinancing will also trigger repayment of the loan.

Shares will often be difficult or impossible to transfer, as they will often be subject to transfer restrictions and in addition, the shares are not listed on any stock exchange or marketplace, so it will typically be difficult to find a buyer.

Loan funds are transferred to an escrow account with a lawyer or bank that handles deposits and withdrawals for each project based on the contractual milestones and approval from an independent construction expert. Crowdster.eu does not accept deposits or payments into its own bank account under any circumstances and never handles funds for any party.

It is up to the individual project owner/property developer to decide what the minimum investment should be. Typically, the minimum investment will be 1,500-50,000 EUR, as we want to give as many people as possible (regardless of financial ability) access to invest via the platform. However, there may be certain projects where it, due to size, complexity or simple practical reasons, it may be necessary to raise the minimum investment.

The property developer usually provides investors with regular (quarterly or monthly) updates on the progress of the project or investment. The information is usually relatively brief or basic.Typically no financial reports or key figures are communicated.

Your investment horizon should coincide with the time horizon of the real estate developer. The expected time horizon (“Maturity”) is usually stated in the investment materials, which are available via your login on the platform.

The Crowdster.eu platform is operated by

Crowdlending Europe AB ("Crowdster.eu" or "Crowdster"),

Org. no. 40431934.

Östermalmstorg 1,
114 42 Stockholm,
Sverige

Investors can cancel their investment until the moment of signing the loan agreement, after which the agreement is binding. However, Less experienced investors have a 4-day cooling-off period. Consumers always have a 14-day right of withdrawal.

Investing in lending for real estate and energy projects can be lucrative but carries a risk of non-repayment. It is important to diversify investments to minimize this risk, at Crowdster we have a set procedure for dealing with situations where borrowers do not pay on time. This process includes:

- Reminder: In case of late payment, we contact the borrower. Most often it's just an error that is quickly corrected.

- Demand letter: If the reminder does not lead to payment, a reminder letter with a collection notice is sent.

- Installment agreement: If payment is still not received, we will try to establish an installment agreement with the borrower, either directly or via a debt collection lawyer.

- Bailiff court: If we are unable to collect the amount or set up a repayment plan, the case goes to the bailiff court for possible attachment of the borrower's assets.

- Foreclosure: If the loan is secured by a mortgage, foreclosure may be an option.

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The individual real estate project, the project owner and its management are solely and entirely responsible for the investment, marketing and offering. Crowdster.eu only provides its platform to the project owner/property developer and has no responsibility for or insight into the investment, marketing or offer. Investors who have questions about a specific investment have the option to contact Crowdster.eu customer service, who will forward the questions to the project owner/property developer.

Crowdster.eu has no direct or indirect control over or responsibility for the real estate developer or the investment offering. Crowdster.eu does not represent either the property developer or the investor and only makes a cursory assessment of the property developer and/or the investment offering and makes no recommendations or opinions whatsoever regarding any part of the investment offering.

Crowdster.eu offers an online platform that real estate developers can use to market their business and real estate project and find potential investors. Crowdster.eu is not obligated to find investors. Crowdster.eu does not advise on investments and does not take active measures to bring together project owners and investors. All communication regarding a potential investment takes place between the investor and the project owner with or without the technical tools offered by the Crowdster platform.

No, Crowdster.eu is not an organizer or distributor of the investment offers marketed on the platform. Crowdster.eu only makes its platform, consisting of a technical tool and an electronic bulletin board, available to project owners and investors.

All lending and investments in real estate projects brokered through the Crowdster.eu platform are legally a matter directly between the investor and the project owner/project company (peer-to-peer). Therefore, it has no impact on your lending if Crowdster.eu gets into financial difficulties. However, it may affect your ability to receive ongoing communication about the investment if the Crowdster platform becomes unavailable to the project owner/property developer during the construction period.

No, it is completely free to sign up as a user on Crowdster.eu.

In order to invest in projects on the Crowdster.eu platform, you need to be created and validated as an investor. This is done by providing your personal ID number and submitting photo documentation of proof of address such as national health card or p and photo ID such as a driver's license or passport. The uploaded material is stored encrypted and inaccessible to the public and will be stored for as long as necessary according to applicable anti-money laundering legislation.

If you no longer wish to have your personal data registered with us, you can write an email to hello@crowdster.eu clearly stating your wish to delete your personal data.

If you have forgotten your password, you can request a password reset. To do this, click “Login” in the top right corner and click “Forgot your password?”. Enter the email address you used when you created a user.

Start by clicking “Create user”/"Get started" in the top right corner. You can then create a profile using an email. To complete your registration, you will receive an activation code by email immediately after registration, which must be entered before you can access the platform.

No, becoming a user allows you to read the full project description and ultimately invest, but you do not commit to making investments simply by creating a user.

The Executive Management and the Board of Directors approve or reject a crowdfunding project based on a detailed review of at least the following documentation and, with the final decision on approval or rejection resting with the Board of Directors:

• Budget and description of the budget assumptions underlying the project, including construction costs, financing costs, equity requirements, etc.

• Background information regarding the project owner, including information on:

• the project owner is registered under insolvency legislation, check The Company Register in relation to project owner's participation in other companies and the status of these companies. This can be done by reviewing financial statements

• Project owner history, experience and reputation

• Identification and legitimisation of the project owner according to anti-money laundering legislation,  

• Criminal record that is maximum 3 months old (if the project owner does not have a clean criminal record, the project will be rejected for this reason alone)

• Evidence that the project owner is not established in a non-cooperative jurisdiction as recognised in the relevant EU policy or in a high-risk third country according to Article 9(2) of Directive (EU) 2015/849.

• In certain cases where it may be relevant to supplement due diligence on the project owner with due diligence on key persons associated with the project, such as a contractor, this will be included in due diligence, credit assessment and pricing. Whether this is relevant is an individual assessment made on a case-by-case basis.

• Recommendation for approval based on due diligence, credit assessment and pricing

• Description of the intended crowdfunding project, including expected timeframe for completion, exit strategy (sale or refinancing)

• Risk assessment regarding the proposed crowdfunding project, prepared by the external risk management function. In this connection, reference is made to the Risk Management Procedure, section 8 "Identification and assessment of risks in the projects" for the risk assessment to be performed and form the basis for the subsequent risk follow-up  

• Pricing according to credit score model

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The projects and investments marketed on the Crowdster.eu platform are usually associated with risk. Usually these are top-end financing with no or subordinated collateral, for projects built by smaller project owners with limited financial resources. Virtually all investments marketed on the platform are associated with risks that banks or credit institutions will not accept. In light of the above, the projects and investments marketed on the platform are only suitable for experienced real estate investors with good opportunities to review, assess and understand the individual project or investment, including not least the risks associated with the project or investment in question. Investors, especially those who do not qualify as experienced real estate investors, should always seek advice from advisors with relevant expertise, such as financial advisors, investment advisors, lawyers, accountants or similar. The level of risk in different investment projects varies. Investors should be aware that an investment is always associated with risks and that all or part of the investment may be lost. You can read more about risks in general here https://www.Crowdster.eu/legal/risk. The more project-specific risks can be found in the investment material that the project owner markets on the platform and that investors have access to when they are logged in to the platform.

In real estate investing, collateral should be viewed as an additional security measure, rather than a guaranteed repayment method. Investors’ primary focus should be on assessing the project’s ability to generate sufficient cash flow to meet its obligations, which ultimately drives successful repayment.

If a real estate crowdfunding project faces delays or financial difficulties, the response will depend on the type of investment involved.

Crowdster.eu's business model aims to minimize risk, which is done by Crowdster.eu performing a basic check of the real estate project and the project owner, by only marketing projects that have a budgeted surplus of at least 25% and by all payments being made directly to the general contractor / contractor / craftsmen and only when Crowdster.eu's independent construction expert has approved the payments. However, it cannot be ruled out that a real estate project may run out of money as a result of a “force majeure” situation, such as (not exhaustive) war, strike, natural disaster, archaeological excavations or other, which either stops the project or causes the project period to be extended or the construction costs to be higher than budgeted and that the project therefore runs out of money. In such a case, Crowdster.eu will, in collaboration with the project owner, assess what is most appropriate, which may involve, for example, refinancing the project and/or searching for additional project capital via the Crowdster.eu platform.

When subscribing for shares, the investor becomes a shareholder and can exercise share rights, such as voting rights and the right to participate in general meetings. As shares are often issued at a premium and/or there are many other shareholders in the company, the individual shareholder's influence on the company can in practice be negligible.

If the project company goes bankrupt, the investors' loans will be included as a receivable in the bankruptcy estate and the investors will receive dividends when the estate is settled. In this connection, there is a risk that the investors may lose all or part of the invested amount. On the other hand, the real estate project itself will be included as an asset in the bankruptcy estate, which the trustee will have to realize at the highest possible price. The trustee will therefore have an interest in the real estate project being completed, as a finished property will have a much higher value than an unfinished real estate project. However, this requires that financing can be found to complete the construction. In Crowdster.eu's opinion, it is highly unlikely that the project company will go bankrupt. This is due to the project structure that applies to all approved real estate projects, where all payments from investors are paid into an escrow account deposit account. The deposited funds are released to the trade contractors on an ongoing basis according to the construction and payment schedule agreed between the property developer and Crowdster.eu. All payments must be approved by an external independent construction expert (paid by Crowdster.eu) and invoices from the trade contractors are paid directly from the escrow account. This means that payments are only made as the project progresses according to plan. The real estate developer only gets access to the proceeds when the bank and investors have repaid their loans and interest.

If a project does not reach its funding goal by the deadline, deposits will be returned to investors unless Crowdster.eu, in collaboration with the project owner, decides to extend the funding period for the project.

The projects and investments promoted on the Crowdster.eu platform are usually associated with risks. Usually they are co-financing/construction financing of real estate projects without or with subordinated collateral and real estate projects handled by smaller - but experienced - project owners with limited financial resources. In light of the above, the projects and investments marketed on the platform are only suitable for experienced real estate investors with good opportunities to review, assess and understand the individual project or investment, including not least the risks associated with the project or investment in question. Investors, especially those who do not qualify as experienced real estate investors, should always seek advice from advisors with relevant expertise, such as financial advisors, investment advisors, lawyers, accountants or similar.

Crowdster has developed it’s own “credit score model” as part of its project due diligence. The credit score model is used in the due diligence process to evaluate if a project might be suitable for launch on the platform a to provide a risk rating for the project. The credit score model evaluates projects on a number of parameters, including, but not limited to, location, developer profile and experience, type of project, etc. The risk rating is used to determine the interest rate for the project. All projects are subject to final approval by the board of directors/credit committee, including the risk rating.

Before a project is added to the platform, Crowdster.eu conducts an overall review of the project in collaboration with in order to minimize risk, including ensuring that there is sufficient room in the budgets should the real estate and financial markets change during the construction period. Crowdster.eu only approves projects for marketing on the platform if there is at least a 25% overcoverage, i.e. the budgeted sales price for real estate projects is at least 25% higher than the total budgeted construction and financing costs. Thus, real estate projects on Crowdster.eu are basically cyclically neutral down to minus 20% within a period of typically 12-15 months.

As part of the introduction of enhanced investor protection, every crowdfunding platform is required to categorise its investors into experienced and less-experienced investors. All investors are initially classified as non-experienced and are thus covered by the enhanced investor protection, you can apply to be considered an experienced investor. This means that you opt out of investor protection and take responsibility for assessing whether the investments offered on the Crowdster platform are suitable for you. In order to be able to opt out of investor protection, an investor must qualify to be considered an experienced investor must fulfill certain criteria.