What's the Difference Between a Pullet and a Straight Run Chicken

What is the difference between bullet and full bullet payment schedules?

Bullet repayment schedule means that loan interest is being paid periodically and principal amount is being paid at the end of the loan period. Full bullet schedule indicated that both interest and principal are being paid at the end of the loan period.

FAQ

• Getting Started
• Adding Funds
• Investing
• Auto Invest
• About Loans
• Withdrawals
• Most asked
• FAQ - Secondary Market
• Instant Exit

• What is a Referral Bonus?

  EstateGuru investors can earn an extra bonus by inviting their friends, acquaintances, and family members to join the platform. To receive your bonus, you should share your personal referral code (your EGU code) with the potential new investor. You can find your code at the top of your virtual account page or under the referral program sub-menu in the account settings section. For each new investor who joins and provides your code, we will give you a 0.5% bonus on any investment they make in loans that achieve funded status within the first three months after their account activation. Once the project the friend invested in gets funded, the bonus will be credited to your investment account. The same bonus is given to your friend, who also earns a 0.5% bonus on their first three months of investment.

• What payment options are accepted by EstateGuru?

  Users are welcome to make their deposits to EstateGuru via SEPA payments, LHV bank link, but also through third party service providers such as Wise(Transferwise), Lemonway and Paysera. A user's first deposit is the means to verify the bank account, hence the first deposit needs to be done from the investor's personal bank account! If you are using the Transferwise service, please make sure you are using a multi-currency account for your deposits. More information can be found here . Attention should also be paid to the countries where such accounts cannot be opened - you will find the countries listed here. Please be aware that EstateGuru only accepts EUR currency.

• How to share your account with other selected users?

  In order to share your account with family members or your third party service providers, please go to "My account" sheet and enter the invitee's e-mail under "Account sharing" tab. After sending the invitation, the invited person needs to accept the invitation via their e-mail. After accepting the invitation they can view your account details. Please be aware that the invited person needs to have a registered account on the EstateGuru.co marketplace.

• How to change your account details?

  In order to change your account details such as bank account details, e-mail account or your name, please contact EstateGuru support via info@estateguru.co and we will do the change for you.

• What are the fees for the borrower?

  Rates vary depending on the loan. Get your personal quote by completing the application form or contacting info@estateguru.co

• Once I apply for a loan, how long will it take to get processed?

  We will make contact with potential borrowers soon after an enquiry or application has been made. We will go through the loan application in detail and ask more questions or for additional documentation where necessary. It will take approximately 2-3 days to evaluate the application and write the loan application, assuming all paperwork is in place. After the final examination is made the loan will be opened for investing on the platform. The syndication process can take anything from a few minutes up to 2 weeks. How fast the project is funded depends mostly on the attractiveness of the project.

• Which documents are required to apply for a loan?

  Requested loan amount, period, interest and repayment schedule Description of the project – how will be the money used; description of the mortgage (location, condition). Appraisal report Business plan Pictures If applicable, information about previous projects and introduction of the borrower. All documents can be uploaded in the loan application form. Additional documents can be sent to info@estateguru.co

• Am I obligated to pay tax on interest that I receive?

  The interest that you receive from borrowers is gross income, which means that EstateGuru does not deduct any tax from the amount. All interest earned from loans is treated by tax authorities as investment income and thus subject to income tax. Investors have the possibility to postpone paying the income tax by investing through a juridical entity, but will still be liable for tax. EstateGuru does not provide tax-related advice and recommend that you turn to a local tax advisor for additional information.

• Is the interest rate fixed?

  Yes, the interest rate paid by the borrower is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the loan type.

• Is it possible to invest though a company?

  Yes. You need to create an investor account with your own name and in the end of the registration form, you have to choose "Select this if you represent a company". Make sure to add the full name of your business and the correct registry code. Before investing you are required to send us an accurate copy of your government-issued identification document.

• Where is the investors' money held?

  Investors' money is held in a separate client money bank account. The account is separate from EstateGuru's operational bank account and is protected in the unlikely event that anything happens with EstateGuru. Any uninvested money that is in your account can be withdrawn instantly. Disclaimer: during 2020 we are importing all user accounts to a third party service provider Lemonway. As a result, each investor will receive a personal IBAN code to use for your payments.

• What are the fees for investors?

  EstateGuru charges a 2% fee for selling claims via the secondary market function (the fee is applied to the seller) and a €1 service fee which is calculated and charged every time an investor withdraws funds from the virtual account. An "inactive account fee" is charged as contractual penalty to users who have deposited funds in their accounts but who have not made any new investments on the Primary or on the Secondary market for the last 12 months and who also have no active loans in their portfolio. The fee will be applied monthly in case there is a positive balance on the user's account. If the cash balance is €0 then the fee will not be applied. If the user makes an investment, the account status will be switched to active again.

• How do I start investing in EstateGuru?

  First you need to sign up as an investor on our platform. Then you need to visit your email account and activate your user account. Before you are allowed to start investing, you are required to send us an accurate copy of your government-issued identification document, fill in the required AML information and an appropriateness questionnaire. Transfer money to your EstateGuru virtual account. Choose a loan you would like to invest in. All loan repayments and interest accrued is held on your EstateGuru account.

• What is the difference between secured and unsecured lending and why is secured lending better?

  An unsecured loan is a loan which does not have any collateral in place, such as land or apartment, and is solely based on a borrower's credit history and potential ability to repay. Secured loans have assets as collateral so that if a borrower cannot repay the loan, EstateGuru's security agent represented by a law firm Triniti will start the asset sales process. Hereby, the risk of losing the money is minimized..

• If all loans are secured, why don't the borrowers approach banks?

  After the credit crunch and the resultant recession, the risk appetite of banks was reduced significantly, which means that banks have tightened their lending criteria. Banks have strict criteria, which is not borrower friendly and thus many loan applications are rejected by banks. EstateGuru is a small and flexible organization which is willing to help companies that are denied financing by banks despite their strong business plan and solid collateral.

• Does EstateGuru guarantee my loans?

  EstateGuru is not a bank, thus we do not fall under the scope of banking laws and regulations. Like with most forms of investing, peer-to-peer lending carries a degree of risk. We reduce this risk to our investors by conducting thorough due diligence and by taking asset security on every loan, in case the borrower is unable to repay their loan. EstateGuru does not guarantee your loans.

• What happens to my established contracts if EstateGuru goes into bankruptcy?

  EstateGuru is a facilitator of real investments, we do not offer the management of assets. All investment contracts are signed between the borrower and the investor, EstateGuru simply facilitates this transaction. All client funds are separated from EstateGuru's operational funds. Should EstateGuru suffer financial difficulties or go bankrupt, client funds are safe and can still be accessed. In such an unlikely event, a contractual entity will be appointed to take over the role of EstateGuru to serve all the investments.

• I have registered, but have not received my confirmation email.

  If you have not received the confirmation email after registration, please check your spam folder first. In most cases, you will find the email there. If you still have not received the letter, please send us an email to info@estateguru.co

• What are the benefits of investing via EstateGuru?

  EstateGuru makes it easy for investors to access a variety of real estate investments with a relatively small amount of capital. The minimum amount for investment is €50, which enables investors to create a diversified portfolio. All loans are secured with a mortgage.

• What is the EstateGuru referral program and how does it work?

  The EstateGuru referral program allows our users to earn extra money. In order to become a part of our referral program, you'll have to register with us. Once registered, you can share your personal referral code with your friends. For each new investor who joins and provides your code, we will give you a 0.5% bonus on any investment they make in loans that achieve funded status within the first three months after their account activation. Once the project the friend invested in gets funded, the bonus will be credited to your investment account. The same bonus is given to your friend, who also earns a 0.5% bonus on their first three months of investment.

• How is my investment secured?

  All the loans are backed with a mortgage. Once the loan is fully invested, the borrower has to go to the notary office and enter into an agreement with the Security Agent to create a mortgage. The mortgage will then be registered at the Land Register (with the Security Agent as mortgagee on behalf of the investors). The Security Agent is a separate limited liability company whose primary purpose is to hold securities for the benefit of investors making investments via EstateGuru. The name of the entity is EstateGuru Tagatisagent OÜ. The entity is controlled by the leading Baltic law office of Triniti

• What is EstateGuru?

  We are an online peer-to-peer (p2p) debt funding platform where property developers and entrepreneurs can borrow funds from abroad international investor base and investors can invest in secured property loans. Currently, the borrowers and properties are in Estonia, Latvia, Lithuania, Finland, Germany, Portugal and Spain whereas investments reach us from 108 countries.

• How will integrating Lemonway affect my user experience?

  When making deposits, you need to transfer your funds to your personal virtual EstateGuru IBAN account which will be indicated on the deposit/withdraw page when logging in via estateguru.co marketplace. In case of correct transfer data, all deposits and withdrawals are processed automatically.

• When using Lemonway, where are my funds actually being held?

  Your funds are in BNP Paribas bank, where Lemonway accounts are being held. Lemonway accounts are in the name of the beneficiary (investor or borrower) and they are opened automatically when you sign up and get verified on the EstateGuru marketplace. All money movements are initiated based on your instructions/activities on the EstateGuru interface. No additional activities are required from the user either on Lemonway nor BNP Paribas.

• How long does it take for deposits and withdrawals to reach my virtual and/or bank account?

  Cross-border regular SEPA payments between banks normally take 1-2 banking days depending on the time the payment was initiated as well as the bank. On EstateGuru, all transfers are processed instantly. If you need to move your funds in a faster manner, please use the instant SEPA payment. We always recommend investors to keep adequate funds on their EstateGuru virtual account to ensure not missing out on great investment opportunities as they get published.

• What are the benefits of using Lemonway?

  All investors will receive a personal virtual IBAN account ensuring full segregation of investors' funds. When making deposits to your virtual account, you need to transfer funds to your personal IBAN account. When making investments or receiving loan repayments then all transfers are being done directly between the investor and the borrower without any 3rd party involvement (or EstateGuru account).

• What is Lemonway?

  Lemonway is a payment service provider ensuring efficient and secure means for handling investors' funds and transactions. Lemonway is regulated by the ACPR – Banque de France since 2012.

• What payment options are accepted by EstateGuru?

  Users are welcome to make their deposits to EstateGuru via SEPA payments, LHV bank link, but also through third party service providers such as Wise(Transferwise), Lemonway and Paysera. A user's first deposit is the means to verify the bank account, hence the first deposit needs to be done from the investor's personal bank account! If you are using the Transferwise service, please make sure you are using a multi-currency account for your deposits. More information can be found here . Attention should also be paid to the countries where such accounts cannot be opened - you will find the countries listed here. Please be aware that EstateGuru only accepts EUR currency.

• How can I change my bank account?

  To change your bank account on the virtual platform you need to make a deposit from the new bank account first. This will enable us to verify your bank account. If the verified bank account belongs to the investor, the new bank account details are automatically saved on the virtual platform. When making future withdrawals, you can choose to which linked bank account you wish to conduct withdrawals.

• Where is the investors' money held?

  Investors' money is held in a separate client money bank account. The account is separate from EstateGuru's operational bank account and is protected in the unlikely event that anything happens with EstateGuru. Any uninvested money that is in your account can be withdrawn instantly. Disclaimer: during 2020 we are importing all user accounts to a third party service provider Lemonway. As a result, each investor will receive a personal IBAN code to use for your payments.

• How long does it take to transfer the funds to my account?

  Once the funds have arrived in our bank account, they are allocated to your virtual account at regular intervals during the day, from Monday to Friday. At the weekends, this may take more time. How quickly the funds will be in your account depends mostly on which bank you use. Our experience shows that it usually takes 1 day in Estonia and 2-4 days in other countries.Should you have any concerns regarding transfers, do not hesitate to ask us. We are here to help. All details required for making the payment can be found on our webpage under the contact section. Please note that only one bank account can be tied to your EstateGuru account. The withdrawals are only made to the account you have registering in the EstateGuru system. The bank account owner's name has to match the EstateGuru username to have the withdrawal accepted. These steps are required to ensure that your funds are not compromised, even if someone manages to get hold of your account access details.

• How is EstateGuru Premium affecting the retail investors of the platform?

  EstateGuru Premium will not affect the position of the platform's retail investors – we will ensure that a suitable proportion of the loan is always left for the retail investors. However, the Premium program will enable us to plan the platform's loans better and increase the volumes. Also, to decrease the syndication period of the loan and thereby increase the average return for the investors.

• How to become an EstateGuru Premium member?

  All investors who's investments exceed €100,000 and who express the wish to join can become a member of EstateGuru Premium.

• What is EstateGuru Premium?

  EstateGuru Premium is a membership created for the platform's investors. The membership is available for all investors who's investments exceed €100,000.

• What is a Referral Bonus?

  EstateGuru investors can earn an extra bonus by inviting their friends, acquaintances, and family members to join the platform. To receive your bonus, you should share your personal referral code (your EGU code) with the potential new investor. You can find your code at the top of your virtual account page or under the referral program sub-menu in the account settings section. For each new investor who joins and provides your code, we will give you a 0.5% bonus on any investment they make in loans that achieve funded status within the first three months after their account activation. Once the project the friend invested in gets funded, the bonus will be credited to your investment account. The same bonus is given to your friend, who also earns a 0.5% bonus on their first three months of investment.

• What is an "open" loan?

  The loan is in "open" status if the syndication period is ongoing and investing in the loan is still possible. Once the loan is full, the loan is placed to "fully invested" status.

• I have made a deposit to my virtual account but cannot make investments?

  To invest on the platform your bank account needs to be verified. Hence, the first deposit needs to be done from the investor's personal bank account (SEPA payment). If you have made the first deposit from your personal bank account but investing is still not possible, please contact EstateGuru customer support.

• What payment options are accepted by EstateGuru?

  Users are welcome to make their deposits to EstateGuru via SEPA payments, LHV bank link, but also through third party service providers such as Wise(Transferwise), Lemonway and Paysera. A user's first deposit is the means to verify the bank account, hence the first deposit needs to be done from the investor's personal bank account! If you are using the Transferwise service, please make sure you are using a multi-currency account for your deposits. More information can be found here . Attention should also be paid to the countries where such accounts cannot be opened - you will find the countries listed here. Please be aware that EstateGuru only accepts EUR currency.

• What is calculated under "reserved balance"?

  Once a loan is in "fully invested" status and has not reached the notary transaction just yet, then all adequate investments are marked in investors' portfolios as "reserved" funds.

• Why is my investment in "pending" status?

  "Pending" status indicates that the funds have been raised to finance the loan, however the notary transaction has not occurred yet. Normally the notary transaction will occur within 1 week from the end of the syndication period, however according to EstateGuru's loan terms the interest calculation will begin by end of 15 calendar days + 10 working days from the end of the syndication period.

• What is projected LTV?

  Projected LTV represents an LTV figure that EstateGuru's team is willing to offer for this particular project as a maximum. This indicates that within the next upcoming stages of the loan the LTV of the loan might increase up to the projected LTV figure.

• What is a stage loan?

  Many developers face the challenge in which the current value of their development object does not enable them to raise the capital that is needed to complete the development object entirely. As EstateGuru only lends against the current value of the collateral not the future value, then for development loans we often make use of the stage financing method. This means that when the first investment round of an object enables the borrower to increase the collateral value of the property by developing the object further, then in the context of the given LTV the investment amount can increase via next stages of the loan. All loans are funded solely based on the current value of the object and a precondition for every stage is a new updated valuation report of the collateral.

• What is the difference between development, bridge and business loan?

  Development loan is a loan used to finance the development's planning process or the development/construction of the property itself. A bridge loan is a short-term loan used to meet current obligations before securing a permanent financing option, enhancing the value of the property or selling the underlying asset. A business loan is a loan used to raise capital for supporting the day-to-day activities of the firm, business expansion, acquisition of equipment or goods, cover pending obligations (taxes, etc.). Despite the loan type, all EstateGuru's loans are secured with a mortgage.

• Am I obligated to pay tax on interest that I receive?

  The interest that you receive from borrowers is gross income, which means that EstateGuru does not deduct any tax from the amount. All interest earned from loans is treated by tax authorities as investment income and thus subject to income tax. Investors have the possibility to postpone paying the income tax by investing through a juridical entity, but will still be liable for tax. EstateGuru does not provide tax-related advice and recommend that you turn to a local tax advisor for additional information.

• Is the interest rate fixed?

  Yes, the interest rate paid by the borrower is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the loan type.

• How do you ensure that the borrower is able to repay the loan?

  The aim of inspecting the borrower is to assess the company's ability to pay back the loan. We do a thorough investigation of the borrowers' background, creditworthiness and current obligations. If applicable, the business plan and financial statements will also be investigated.

• What happens when the borrower wants to extend the loan period?

  In case the borrower wants to extend the loan period, EstateGuru will investigate the reasons and assess the situation accordingly. If the loan period is to be be extended, the borrower will be obliged to pay a fee to cover additional documentation expenses.

• What happens when a payment is delayed?

  As soon as the borrower is late in repaying an instalment, we will make contact on behalf of our investors to find out the reason behind the delay. In case of a delay, the borrower shall pay an indemnity specified in the general loan terms. When the borrower faces financial difficulties, we will try to find the best solution for both parties. If the borrower is unable to repay the loan, we will cooperate with our debt collection partners and security agent to recover the debt.

• If I make an investment into a loan application, when will I start earning interest?

  You will start earning interest after the required documentation and creation of pledge is completed.

• Do I earn interest on funds which I have not yet invested in loans?

  We do not pay interest on uninvested funds. To get the best return from using our platform you should invest your money into open projects to minimize uninvested funds. EstateGuru also has an Auto Invest function which will take care of your investments without you having to worry about it.

• Is it possible to invest though a company?

  Yes. You need to create an investor account with your own name and in the end of the registration form, you have to choose "Select this if you represent a company". Make sure to add the full name of your business and the correct registry code. Before investing you are required to send us an accurate copy of your government-issued identification document.

• What are the fees for investors?

  EstateGuru charges a 2% fee for selling claims via the secondary market function (the fee is applied to the seller) and a €1 service fee which is calculated and charged every time an investor withdraws funds from the virtual account. An "inactive account fee" is charged as contractual penalty to users who have deposited funds in their accounts but who have not made any new investments on the Primary or on the Secondary market for the last 12 months and who also have no active loans in their portfolio. The fee will be applied monthly in case there is a positive balance on the user's account. If the cash balance is €0 then the fee will not be applied. If the user makes an investment, the account status will be switched to active again.

• How do I start investing in EstateGuru?

  First you need to sign up as an investor on our platform. Then you need to visit your email account and activate your user account. Before you are allowed to start investing, you are required to send us an accurate copy of your government-issued identification document, fill in the required AML information and an appropriateness questionnaire. Transfer money to your EstateGuru virtual account. Choose a loan you would like to invest in. All loan repayments and interest accrued is held on your EstateGuru account.

• What is the difference between secured and unsecured lending and why is secured lending better?

  An unsecured loan is a loan which does not have any collateral in place, such as land or apartment, and is solely based on a borrower's credit history and potential ability to repay. Secured loans have assets as collateral so that if a borrower cannot repay the loan, EstateGuru's security agent represented by a law firm Triniti will start the asset sales process. Hereby, the risk of losing the money is minimized..

• If all loans are secured, why don't the borrowers approach banks?

  After the credit crunch and the resultant recession, the risk appetite of banks was reduced significantly, which means that banks have tightened their lending criteria. Banks have strict criteria, which is not borrower friendly and thus many loan applications are rejected by banks. EstateGuru is a small and flexible organization which is willing to help companies that are denied financing by banks despite their strong business plan and solid collateral.

• Does EstateGuru guarantee my loans?

  EstateGuru is not a bank, thus we do not fall under the scope of banking laws and regulations. Like with most forms of investing, peer-to-peer lending carries a degree of risk. We reduce this risk to our investors by conducting thorough due diligence and by taking asset security on every loan, in case the borrower is unable to repay their loan. EstateGuru does not guarantee your loans.

• What happens to my established contracts if EstateGuru goes into bankruptcy?

  EstateGuru is a facilitator of real investments, we do not offer the management of assets. All investment contracts are signed between the borrower and the investor, EstateGuru simply facilitates this transaction. All client funds are separated from EstateGuru's operational funds. Should EstateGuru suffer financial difficulties or go bankrupt, client funds are safe and can still be accessed. In such an unlikely event, a contractual entity will be appointed to take over the role of EstateGuru to serve all the investments.

• What are the benefits of investing via EstateGuru?

  EstateGuru makes it easy for investors to access a variety of real estate investments with a relatively small amount of capital. The minimum amount for investment is €50, which enables investors to create a diversified portfolio. All loans are secured with a mortgage.

• How is my investment secured?

  All the loans are backed with a mortgage. Once the loan is fully invested, the borrower has to go to the notary office and enter into an agreement with the Security Agent to create a mortgage. The mortgage will then be registered at the Land Register (with the Security Agent as mortgagee on behalf of the investors). The Security Agent is a separate limited liability company whose primary purpose is to hold securities for the benefit of investors making investments via EstateGuru. The name of the entity is EstateGuru Tagatisagent OÜ. The entity is controlled by the leading Baltic law office of Triniti

• What is the predictable rate of return and interest rate?

  Depending on the project characteristics the annual interest rate can range between 8% and 13%.

• What is the minimum investment amount?

  The minimum investment amount is €50.

• Who can invest on EstateGuru?

  You must be at least 18 years old and have a bank account in any of the EEA member states or in Switzerland in order to lend through EstateGuru. We also have to perform certain "know your customer" checks before you can start investing with EstateGuru.

• In case of using Auto Invest, why is the investor allowed to choose suitable investment criteria only if the investment amount is above €250?

  Our stress-test shows that if you have diversified your investment portfolio enough then it can handle stressful economic situations in a better manner. We have seen that investors prefer higher interest which in a standard economic situation indicates a higher risk. Therefore, in order to take measures to protect our retail investors we have limited the amount from which you can start choosing different criteria to ensure that smaller investors have as diversified portfolio as possible. Alternatively, investors have the chance to investigate each project separately by choosing to invest manually.

• Can I change my Auto Invest settings?

  You can easily change your Auto Invest settings at any time. Go to the Auto Invest activation page and you will be able to change the settings as you see fit.

• Can I still invest manually after Auto Invest?

  Of course. You can choose to dismiss the Auto Invest feature and keep a close eye on your investments while following the investment process manually. You can easily activate or deactivate the Auto Invest feature from the activation page. It is important to keep in mind that all regulations applicable for manual investments also apply for investments made through the Auto Invest feature.

• How will my money be spread?

  Your money will be spread based on the investment amount you have entered at the Auto Invest activation page. Your investments will be placed into the loans according to the same sequence they appear on the platform. For more specific explanation please read the user terms in which the allocation process is explained in more detail.

• What are the benefits of Auto Invest?

  The main keywords for the Auto Invest feature are comfort, speed and automatization. Auto Invest ensures you will not miss an investment opportunity due to high demand and the investment will be placed based on your chosen criteria automatically, without you having to stress about it. Auto Invest enables you to build a diversified portfolio, in which all the projects are chosen by a professional team who stands for the success of your investments. Auto Invest enables you to reinvest your income at the earliest opportunity. This way you start earning interest on committed funds as soon as possible.

• What is Auto Invest?

  Auto Invest is a feature which will make investments for you based on your predetermined criteria. When a loan is published on the platform Auto Invest investors' funds are placed into the loan first, before it is released for manual investing.

• What is the minimum investment amount?

  The minimum investment amount is €50.

• Who can invest on EstateGuru?

  You must be at least 18 years old and have a bank account in any of the EEA member states or in Switzerland in order to lend through EstateGuru. We also have to perform certain "know your customer" checks before you can start investing with EstateGuru.

• What is a stage loan?

  Many developers face the challenge in which the current value of their development object does not enable them to raise the capital that is needed to complete the development object entirely. As EstateGuru only lends against the current value of the collateral not the future value, then for development loans we often make use of the stage financing method. This means that when the first investment round of an object enables the borrower to increase the collateral value of the property by developing the object further, then in the context of the given LTV the investment amount can increase via next stages of the loan. All loans are funded solely based on the current value of the object and a precondition for every stage is a new updated valuation report of the collateral.

• What is the difference between development, bridge and business loan?

  Development loan is a loan used to finance the development's planning process or the development/construction of the property itself. A bridge loan is a short-term loan used to meet current obligations before securing a permanent financing option, enhancing the value of the property or selling the underlying asset. A business loan is a loan used to raise capital for supporting the day-to-day activities of the firm, business expansion, acquisition of equipment or goods, cover pending obligations (taxes, etc.). Despite the loan type, all EstateGuru's loans are secured with a mortgage.

• What is the difference between bullet and full bullet payment schedules?

  Bullet repayment schedule means that loan interest is being paid periodically and principal amount is being paid at the end of the loan period. Full bullet schedule indicated that both interest and principal are being paid at the end of the loan period.

• Can I use land or forest as a security asset for the loan?

  Yes, we do offer loans secured by land or forest.

• Can the borrower extend the loan period?

  Yes, borrowers are able to extend the loan period. Before the loan is extended, EstateGuru will require the reasons behind the request. Our credit team will assess each request on an individual basis.

• What happens when the borrower wants to repay the loan earlier?

  Borrowers are able to repay the loan earlier and interest for the investors will be calculated and charged based on the number of days the funds were in the borrower's possession.

• What are the fees for the borrower?

  Rates vary depending on the loan. Get your personal quote by completing the application form or contacting info@estateguru.co

• Once I apply for a loan, how long will it take to get processed?

  We will make contact with potential borrowers soon after an enquiry or application has been made. We will go through the loan application in detail and ask more questions or for additional documentation where necessary. It will take approximately 2-3 days to evaluate the application and write the loan application, assuming all paperwork is in place. After the final examination is made the loan will be opened for investing on the platform. The syndication process can take anything from a few minutes up to 2 weeks. How fast the project is funded depends mostly on the attractiveness of the project.

• Which documents are required to apply for a loan?

  Requested loan amount, period, interest and repayment schedule Description of the project – how will be the money used; description of the mortgage (location, condition). Appraisal report Business plan Pictures If applicable, information about previous projects and introduction of the borrower. All documents can be uploaded in the loan application form. Additional documents can be sent to info@estateguru.co

• How can I apply for a loan?

  To apply for a loan you need to complete the application form and provide us with all the documentation required. Do not hesitate to contact us if you have a question or concerns at info@estateguru.co.

• Is the interest rate fixed?

  Yes, the interest rate paid by the borrower is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the loan type.

• How do you ensure that the borrower is able to repay the loan?

  The aim of inspecting the borrower is to assess the company's ability to pay back the loan. We do a thorough investigation of the borrowers' background, creditworthiness and current obligations. If applicable, the business plan and financial statements will also be investigated.

• What happens when the borrower wants to extend the loan period?

  In case the borrower wants to extend the loan period, EstateGuru will investigate the reasons and assess the situation accordingly. If the loan period is to be be extended, the borrower will be obliged to pay a fee to cover additional documentation expenses.

• What happens when a payment is delayed?

  As soon as the borrower is late in repaying an instalment, we will make contact on behalf of our investors to find out the reason behind the delay. In case of a delay, the borrower shall pay an indemnity specified in the general loan terms. When the borrower faces financial difficulties, we will try to find the best solution for both parties. If the borrower is unable to repay the loan, we will cooperate with our debt collection partners and security agent to recover the debt.

• If all loans are secured, why don't the borrowers approach banks?

  After the credit crunch and the resultant recession, the risk appetite of banks was reduced significantly, which means that banks have tightened their lending criteria. Banks have strict criteria, which is not borrower friendly and thus many loan applications are rejected by banks. EstateGuru is a small and flexible organization which is willing to help companies that are denied financing by banks despite their strong business plan and solid collateral.

• Does EstateGuru guarantee my loans?

  EstateGuru is not a bank, thus we do not fall under the scope of banking laws and regulations. Like with most forms of investing, peer-to-peer lending carries a degree of risk. We reduce this risk to our investors by conducting thorough due diligence and by taking asset security on every loan, in case the borrower is unable to repay their loan. EstateGuru does not guarantee your loans.

• What happens to my established contracts if EstateGuru goes into bankruptcy?

  EstateGuru is a facilitator of real investments, we do not offer the management of assets. All investment contracts are signed between the borrower and the investor, EstateGuru simply facilitates this transaction. All client funds are separated from EstateGuru's operational funds. Should EstateGuru suffer financial difficulties or go bankrupt, client funds are safe and can still be accessed. In such an unlikely event, a contractual entity will be appointed to take over the role of EstateGuru to serve all the investments.

• What are the principal terms of the loans?

  You are asked to specify the target funding amount and your desired pricing when you apply for funding on the EstateGuru platform. Once we have approved your project and performed all other checks, we will discuss and agree on an appropriate interest rate level with you before you can publish your loan request. All loans are granted with a fixed interest rate. The target funding amount can be anywhere from €20,000 to €3 million. Loans are amortising with a tenor of 6 months to 5 years.

• How is my loan funded on EstateGuru?

  The borrower completes the initial loan application form on our website or contacts our sales team. EstateGuru will assess the borrower's creditworthiness, business plan, and the appraisal report of the collateral, to ensure the borrower is able to make the loan repayments and to avoid a situation, where investors' capital is at risk. After approval of the loan request, the loan will be released on the EstateGuru platform, where investors can assess the risk and invest in the loan. When the loan is funded, the pledge will be created and the loan will be paid out to the borrower. In case the loan does not get funded, the contracts will end instantly and all the invested funds will be released to the respective investors' accounts. The borrower also has the option to accept only the amount that was raised. The borrower is obliged to make the repayments according to the agreed repayment schedule. The investors can track all repayments on the portfolio page and withdraw or reinvest all the receivables.

• What type of loans can be funded on EstateGuru?

  Property backed loan applications in Estonia, Latvia, Lithuania, Spain, Finland and Portugal which are approved by our team can access funding through EstateGuru. However, there is no limitation on the type of projects that can be submitted for approval. As long as the loan application has a property element to it and the property is capable of being used as security against the debt, you are free to submit it for approval.

• Who can borrow on EstateGuru?

  Only legal entities incorporated in the EU, with collateral located in Estonia, Latvia, Lithuania, Finland, Germany, Spain, Portugal, Netherlands, Italy, UK, Ireland can currently borrow through EstateGuru. We will have to perform "know your customer" checks and approve your real estate project before you are allowed to post your loan application on EstateGuru.

• How can I change my bank account?

  To change your bank account on the virtual platform you need to make a deposit from the new bank account first. This will enable us to verify your bank account. If the verified bank account belongs to the investor, the new bank account details are automatically saved on the virtual platform. When making future withdrawals, you can choose to which linked bank account you wish to conduct withdrawals.

• What is an "open" loan?

  The loan is in "open" status if the syndication period is ongoing and investing in the loan is still possible. Once the loan is full, the loan is placed to "fully invested" status.

• I have made a deposit to my virtual account but cannot make investments?

  To invest on the platform your bank account needs to be verified. Hence, the first deposit needs to be done from the investor's personal bank account (SEPA payment). If you have made the first deposit from your personal bank account but investing is still not possible, please contact EstateGuru customer support.

• What is calculated under "reserved balance"?

  Once a loan is in "fully invested" status and has not reached the notary transaction just yet, then all adequate investments are marked in investors' portfolios as "reserved" funds.

• Why is my investment in "pending" status?

  "Pending" status indicates that the funds have been raised to finance the loan, however the notary transaction has not occurred yet. Normally the notary transaction will occur within 1 week from the end of the syndication period, however according to EstateGuru's loan terms the interest calculation will begin by end of 15 calendar days + 10 working days from the end of the syndication period.

• What is projected LTV?

  Projected LTV represents an LTV figure that EstateGuru's team is willing to offer for this particular project as a maximum. This indicates that within the next upcoming stages of the loan the LTV of the loan might increase up to the projected LTV figure.

• What is the difference between development, bridge and business loan?

  Development loan is a loan used to finance the development's planning process or the development/construction of the property itself. A bridge loan is a short-term loan used to meet current obligations before securing a permanent financing option, enhancing the value of the property or selling the underlying asset. A business loan is a loan used to raise capital for supporting the day-to-day activities of the firm, business expansion, acquisition of equipment or goods, cover pending obligations (taxes, etc.). Despite the loan type, all EstateGuru's loans are secured with a mortgage.

• How can I change my bank account?

  To change your bank account on the virtual platform you need to make a deposit from the new bank account first. This will enable us to verify your bank account. If the verified bank account belongs to the investor, the new bank account details are automatically saved on the virtual platform. When making future withdrawals, you can choose to which linked bank account you wish to conduct withdrawals.

• How is AROI calculated in secondary market claims?

  The formula of AROI calculation is: Annualized return = Expected Earnings / Remaining Period * 365 / Principal Purchased

• How to use the secondary market feature?

  • The seller can choose the price of the claim, hence also the return for both seller and the buyer. • The investor can only sell the entire claim, the claim cannot be halved or partially sold. • All contracts are established in a manner that all previous contracts are handed over to the buyer, including all bonus contracts if applicable.

• How much are the fees for using secondary market?

  There are no fees for using the secondary market for the buyer. For the seller, a 2% transaction fee will be applied.

• Can I cancel my secondary market bid? (for seller)

  Yes, as a seller you can cancel your secondary market bid at any time, assuming that the investment has not been purchased yet. Please be aware that the bid will be automatically cancelled after 14 days, if the investment has not been purchased during this time period.

• How liquid is the secondary market?

  The liquidity of the secondary market depends heavily on the interest of the platform's fellow investors. There is no guarantee that an investment placed for sale will be sold.

• How are returns divided among the seller and the buyer of an investment?

  All returns are divided between the two parties based on their actual investment duration. Meaning that the seller is entitled to all interest payments made before they sell their claim, while the buyer receives all interest payments after they purchase the claim. However, the seller can choose to sell at a more expensive rate (up to the amount of unreceived interest), although such a sale is unlikely to attract a buyer. If the buyer purchases a loan that is in debt, meaning that certain penalties, indemnities or interest payments have not been done and the claim exists, then all claims will belong to the buyer. Once the seller has sold an investment, they have no future claims to any of the proceedings.

• What are my obligations from using secondary market – what to keep in mind?

  All investors need to keep in mind that all secondary market investments are binding and same conditions apply as for all the primary market investments.

• What is secondary market and who can use it?

  Secondary market is a feature through which investors can prematurely sell their investments that they are involved in, should they have the need for an early exit opportunity. Secondary market can be used by all investors who are involved in EstateGuru's investment opportunities. From the buyer's side – all registered and verified EstateGuru users are welcome to purchase investments from the secondary market.

• What is the Instant Exit program?

  The Instant Exit program is a voluntary feature that can be used for immediate liquidity through selling the claims in an investor's portfolio. When using the Instant Exit feature a fixed 35% discount on the outstanding principal amount is automatically applied. The Instant Exit feature is only available once there are sufficient funds in the Instant Exit pool and when the pool has not reached the pre-set exposure limits. Please be aware that the current feature has limited availability as the product is in beta-testing mode.

• What restrictions apply when selling your claims via the Instant Exit feature?

  As of today, the Instant Exit pool is limited and as a result certain limitations apply to ensure the needed diversity for the period of beta-testing the product. Limitations on the total pool of claims sold via the Instant Exit feature are as follows: Maximum exposure into one loan in the total pool of funds - 5% Maximum exposure into one borrowing company's and/or representative's loans - 20% Maximum exposure into loans funded against one collateral property - 20%

What's the Difference Between a Pullet and a Straight Run Chicken

Source: https://estateguru.co/faq/what-is-the-difference-between-bullet-and-full-bullet-payment-schedules/

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