How to invest ?

Trustcon is a real estate tech platform which enables working professionals to invest micro-finance in real estate development projects to become home owners

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The process

Real estate projects

Trustcon undertakes real estate development projects and opens up invites for home equity stakes for working professionals.

Detailed project plans are shared with the invitees for their evaluation.

Expression of Interest

Interested parties after analysing the particular real estate project, send in an EOI (Expression of Interest) with their planned investment range.

Note: There is NO commitment of investment at this stage.

Business equity allocation

Once the EOIs are locked, a business entity is created for the specific project with official home equity shares allocated to the investing parties.

The equity stakes are proportional to the investment and share holding.

Profit sharing

Project is initiated and funds allocation is disbursed as per agreed expenditure matrix through the entire process with real time dashboard tracking.

Upon project completion, the house possession given to members.

FAQs

1. When would I have to invest ?

There is no upfront investment at the stage of EOI. Trustcon publishes multiple on-going or new development projects on its website. The invitees are presented with the details of the project alongwith project feasibility report, project plan, detailed expenditure allocation and ROI projections. Once an EOI is received and application window is closed, Trustcon proceeds to creation of the new business entity for the project. It is at this stage that the investment is disbursed by the parties with equity stakes allocated as per Companies Act, 2013

2. How much investment is required ?

The minimum investment size varies as per the built-up area plan. There is a 25% difference on the nett effective rate compared to market rate.

3. What are the documents required ?

Last 3 year ITR returns are required to be submitted at the time of membership on the platform. Once approved, all members are presented with the proposed real estate development projects under consideration. *Membership on the platform is free*

4. Who will manage the investments ?

Trustcon is the custodian of the investment and is liable for the expense allocation as per agreed terms and conditions with the partners (you) on the respective development projects.

5. What is the typical investment duration ?

Typical investment duration is proportional the the duration of the project which is generally 36 months.

6. What is the expected ROI ?

The typical ROI is in a saving of 15 - 25% on the market cost of per sq.ft. area The detailed projections are shared at the time of EOI.

7. What are the platform charges (transaction fee or commission on profit) ?

There is no upfront cost for members payable to Trustcon. Once the EOI window is locked and new company formation initiated for the respective project, Trustcon charges a 2% facilitation fee. Once the project is started Trustcon charges an additional 4% fee of the actual expenses disbursed across different milestones of the project. This is from the company's funds and members do not have to pay any additional fee.

8. How much tax will be imposed on returns ?

The taxation rules applicable for the equity owners on the different projects is as per Income Tax Act, and subjected to the final profit realisation and disbursement for the respective project.

Minimum savings

Depends on minimum flat area