Frequently Asked Questions
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What is crowdfunding?
Crowdfunding is a new type of investment and financing method. The crowdfunding platform will display the audited projects on the website and financing to the public in the form of small units of equity or products. Ordinary investors can invest without leaving their homes. Since professionals from Real estate, law, and finance industries will handle various documents and formalities, investors do not need professional knowledge of real estate. Even if investors in China can legally and conveniently invest in American real estate market. Financiers can even get a wider source of funding through crowdfunding and are easier and faster to get approve than traditional lenders. The biggest difference between crowdfunding and REITs is that investors do not know or cannot choose specific investment projects when investing in trusts, and investment trusts need to charge an average of 14% of investors' fees before invest, which result in a cumbersome investment process and no transparent. Through crowdfunding platform, investors can invest in their favorite projects according to their own preferences, which makes the investment process more transparent and controllable. At the same time, the platform can also provide investors with more diverse choices.
What is the investment threshold of Fundways?
Fundways is an online investment platform. Through this platform, domestic and foreign investors can:
- Browse investment opportunities and choose the right project based on your preference (location, risk, return, etc.);
- Investment in the project via internet, including signing of legal documents, transfer of funds, transfer of ownership, etc;；
- Online tracking and manage investment, viewing earnings status and financial statements;
- Investment in Fundways is more like investing in funds, but it is safer and more profitable.
How Fundways work?
Invest process in Fundways is clear, easy to understand and easy to operate. First of all, the financier submits the project application through Fundways platform. After that, the Fundways team will conduct due diligence and screening on the projects. Relevant survey data and review scoring results will be announced to ensure the transparency of all the projects. In the meantime, investors can choose their favorite investment projects and submit applications through the platform. With the number of investors in the same project increases till the project reaches the target amount, Fundways will pool all investors into project and make payments into third-party project company's account (LLC) to invest in the project. LLC company’s shares will allocate proportionately to each investor's investment amount. Finally, the company will be responsible for the development, trading, operation and management of the real estate. The investors will receive the financial statements of the projects regularly and also receive the return on investment such as interest and rental share.
What’s the project location of Fundways?
All items on the site are in the United States. We currently do not offer non-U.S. project opportunities.
Can I invest through a company or trust?
Yes. You can invest through LLC, LP or Trust. Please contact email@example.com for more information.
What is the minimum investment amount?
The minimum investment is 10,000 US dollars.
Non-US citizens? Can non-US citizens or people outside the United States invest in U.S. projects?
Fundways is facing global investors, non-US citizens can also invest in U.S. projects. Please contact firstname.lastname@example.org for more information.
What is the Fundways rating？
Fundways gives the project rating based on the real project information to make investors compare investment opportunities more intuitively. The rating classes are A +, A, A-, B +, B, B-, C +, C, C-, D +, D, D-. The rating combines the benefits of the project with the assessment of the magnitude of the risk and is for reference only.
I would like to consult with specific details about an investment.
Specific details on investment can be found on the project page, please read carefully before investing. If you have any questions, feel free to contact us at email@example.com.
What is the background of Fundways？
Fundways was established in 2014 and our founders have had 20+ years of successful investment experience in New York City. Our management team consists of leaders from various fields such as real estate development, banking and securities, investment advisory, risk management and financial internet technology.
When the project of Fundways begin to calculate interest？
We began to calculate the interest rate on the day that Investor’s money into the account of third-party. Interest settlement date different based on different projects. For details please refer to the specific introduction of each project.
When investors can take back the investment funds?
Return on all items of Fundways will be described in detail in the project report. For details, please refer to the Investment Term column.
What is Accredited Investor？
Investors who satisfy any one of the following conditions are Accredited Investors. According to the provisions of the Securities and Exchange Commission (SEC):
- Investor's personal net worth or the family's net worth with the spouse is more than one million US dollars (excluding the property used for self-occupation).
- Over the past two years, investors have been earning more than $ 200,000 per year and will have more than $ 200,000 income for this year.
- Over the past two years, investors and spouses have aggregated more than $ 300,000 in revenue and will have more than $ 300,000 in revenue this year.
- The investor is a commercial or investment company with an asset size of over $ 5 million, or both of its equity holders are eligible investors.
For more information, please contact firstname.lastname@example.org
What kind of investment opportunities does Fundways provide?
Debt Financing: The investor loans to the financier and pre-agreed the amount of the loan, the term of the loan, and the interest on the loan. Financing parties pay debt service as agreed.
Equity Financing: The financier transfers the equity of the project to the investor. Investors have the right to ordinary share capital and property distribution. From a revenue perspective, it is one of the most profitable ways to invest. At the same time, its risk is higher than debt financing.
Preferred Equity Financing: Preferred stock is relatively speaking to common stock. Mainly refers to priority over common stock in profit distribution of dividends and the remaining property rights. Preferred shares have two kinds of rights: First, when the company allocates profits, the shareholders who have the preferred shares are allocated earlier than the shareholders who hold common shares, and enjoy a fixed number of dividends, that is, the dividend yield of preferred shares is fixed, the dividend yield of common shares is not fixed, which depending on the profitability of the company. More profit more dividend, less profit less dividend, no profit no dividend. There is no cap, and the bottom is not guaranteed. Second, when the company is dissolved and need to allocation of surplus property, the preferred shares get refund before common shares. Preferred shares have not yet been realized in China, but in the United States it is a more popular way of financing, mainly because the interests of investors are more protected than common shares, and the profit is much higher than the bond financing.
What the investing process is like in Fundways?
After investors decide to invest and sign all the legal documents, the funds will be transferred to the project escrow account. Only when the target financing amount is reached and the real estate transaction is completed, the investment funds for the real estate project can be transferred out and used.
How to understand the investment time horizon?
Each time horizon is for a specific project. Different projects may not have the same time horizon. It is imperative for investors to carefully read and understand the issue documents, including the terms, before investing.
As an investor, when can I get investment income?
Different types of projects will have different expected return of time. Usually, Ground-up will be rewarded 18-36 months after the investment is completed. For projects that have a stable cash inflow, you can sometimes get benefits for months. Please check the project's release documents for detail.
Is my investment risky
In investment activities, risks always coexist with profits. Like stocks or bonds, real estate is impaired as the economy downturn. However, changes in the economic environment are hard to predictable, so it is important to understand your own risk tolerance before investing. As far as possible, Fundways will refine risk assessment and expressed in the project description objectively.
What if the financier overdue or terminate the interest payment?
Before cooperation, Fundways will conducted a rigorous background review of the financiers to minimize the risk of default. If the financier still defaults for some reason, Fundways will take legal measures to maximize the recovery of funds, such as the auction of collateral. The legal documents negotiated and signed by Fundways and the developer stipulate what measures we can take to protect the interests of investors when a breach of contract occurs. So far, there has been no record of default among online and offline financiers that partner with Fundways.
What documents will I receive as an investor
After the investment is completed, investors can view the investment performance online, checking relevant trading documents and obtain project dynamics, revenue and tax documents.
How do I get the progress of investment project update？
Fundways requirements the project company updates on a weekly basis to provide project updates. Investors will receive these updates via email or on the personal page of the website.
What happens if you do not reach the target financing amount？
Investment activity is considered complete only if the target financing amount has been reached and all legal documents have been properly signed. Within a certain period of time, if the financing target cannot be achieved, all investors' money will be fully refunded.
Can I terminate investing？
Fundways’ current lock-up period is 1 year, within one-year investors cannot terminate the investment. Investors can withdraw their funds at any time after one year (120 days ahead of time for noticing Fundways). The interest is calculated to the real deadline and on the basis of the interest of the previous year. Investors must read the offering documents carefully before making their investment decision to better understand the holding period of different projects.
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