Project written and posted by AccreViv S.A.S. CUIT: 30-71640466-4
SeSocio will lend funds to buy land to build a set of houses in the futures. AccreViv manages and sells the lots, clients sign the contracts to acquire the properties and save the upfront payment to purchase the house.
From the capital obtained, a big part will be destined to the acquisition of a 10.000 m2 lot in Pilar, province of Buenos Aires, with mortgage in favour of SeSocio.
The annual estimated profit is 27.01% in USD, which is calculated on gross income for 3 years. The profitability is variable and is payable monthly; it is linked to sales plus administrative income.
The principal will be repaid in full when the contract finishes, after 38 months. The rent is variable and the first payment will be made 60 days after the project is fully funded.
AccreViV divides the process in two stages:
- First Stage (saving before building begins): Selling the lots. This is the stage that matches with the duration of SeSocio's loan.
- Second Stage: Building the houses, with mortgage in favour of the owners.
Through SeSocio we will gather USD 250.000, which is the capital required for the first stage.A part of the investment will be destined to the purchase of a 10.000 m2 lot and the rest, to other expenses necessary for the execution of the project.
Once the project is fully funded, there will be a grace period of 60 days, after which the cash flows will begin.
You can find the cash flows in the following chart:
(for more details about the cash flows, please click here)
The initial investment breakdown is as follows:
Finally, the list of annual expenses:
The residential real estate market is nowadays in a complicated situation: the high interest rates and the measures implemented by the government (like UVA loans) make it hard to buy a house for some members of the population, particularly young families.
This has left some room of oportunity for private companies to come up with a model of pre-savings, through which we offer an easy solution to buy a house. Our product makes it possible to buy lots and build, which is particularly attractive for families that still do not have enough savings to enter a conventional financial system that requires roughly 25% to 30% of the value of the property as upfront payment.
Our buyers act as investors of what will be their home; this way we manage to offer premium developments at a lower rate. The period of saving is 24 months and the house is built on a 140 m2 lot, with a mortgage in favour of buyers.
Market Overview and Oportunity
In 2018, there were 44,5 million people in Argentina, which represented 13,3 million homes, out of which 92% resides in cities.
1 out of 3 homes had issues with their houses; this sums up to 4 million, out of which 1.5 million houses are still to be built, and the rest, houses that are already build but have quality issues, or they lack basic services.
The INDEC estimates that Argentina generates around 210.000 homes each year, out of which 35.000 cannot afford to buy their own residence.
By the end of 2018, the average price of housing increased: previously, the upfront payment was ARS 367.000, while now it stands at ARS 931.000. A 1-bedroom flat used to cost USD 105.400 while now it stands at USD 123.800, which translates into a 17% rise. Nonetheless, in ARS the hike was of 154% since it moved from ARS 1.834.000 to ARS 4.655.000, according to official data.
Loans to buy a house are practically non-existent since rates are still high. The Argentine population has lost purchasing power, so they have issues accessing the financial system and therefore buying their home through a traditional mortgage.
AccreViv, either by itself or associated with other companies or investors, focuses on the managing and commercialization of real estate projects; it develops the projects from scratch all the way through the building process, securing the administration, sales and selection of lands.
Our mission is to obtain benefits, but apart from that we want to have our say is social equity, helping the families develop their dreams and be ecofriendly.
We are delighted to have a great team of professionals with an amazing track record and ground-breaking ideas.
Armando Damián Flora, President and Shareholder
Young Argentine entrepreneur. He has studied engineering and statistics.
Daniel Alberto Santaliz, Account and Colaborator
Specialist in Management and Development
Master in Management and Advice for Companies.
What's the minimum investment amount?
The full capital required is USD 250.000, but thanks to SeSocio you can participate without minimum amount.
What does Accreviv do?
Accreviv purchases empty lands and sells lots on which houses will be built. The clients sign a contract and save in advance, which is the upfront payment to build their home.
What happens with the land once the project is funded?
Once the contract ends (38 meses), the land's property passes on to Accreviv S.A.S.
What's the monthly profit? How long is the contract with SeSocio?
The monthly profit is calculated as 20% of the gross profit. Profitability is paid monthly and it is variable since it is linked to sales. The contract has a duration of 3 years (2 months of grace period + 36 months of commercialization).
What's the annual profit? Is it fixed or variable? When is it paid?
The annual profit is estimated at 27.01%. Is it variable because it depends on gross profit. It is paid monthly after 60 days since the project is fully funded.
How long does it take to receive the first payment?
Once the project is 100% funded, the contract with SeSocio is signed, the funds are transferred and the first payment will be received by investors after 60 days.
Is it possible to exit the project?
Yes, you can trade out at any time, through the trading platform.
How's the principal repaid?
The principal is repaid in a single payment at the end of the contract (38 months).
What are the risk factors ?
The investor will need to consider the risk factors carefully, which are mentioned in SeSocio's website (https://www.sesocio.com/investment_risk). Any investor looking to participate in crowdfunding projects needs to assess the risk individually and independently.
What are the risks of investing in Accreviv?
Considering that the requested amount is for initial investment, SeSocio's investors will have a mortgage over the 10.000 m2 land until the end of the 38-month period.