Fundimmo is not an internationally well-known platform as the website is only available in French. Therefore, investing on Fundimmo is suitable for investors understanding French. Nonetheless, I am speaking a bit about it below so you have an understanding of what possibilities are offered by this platform that is currently the biggest share of my portfolio.
What is Fundimmo?
Fundimmo is a French real estate platform connecting retail investors to real estate developers seeking to complement their own funds by issuing full bullet bonds with fixed rate of circa 8-10% and a maturity ranging mostly from 1 to 2 years. Those rates are pretty similar to other real estate platforms in France.
The real estate developers are usually of quality and have already secured a bank loan much larger than the amount they seek on the platform. This is usual business practices that banks require a certain level of own funds for the structure (often specifically created) realising the project. In order to match that request, or to keep the possibility to conduct additional projects, the developers are looking for complementing their own funds by raising money on Fundimmo. Therefore, the reimbursement of the bonds are often subordinated to the bank loans ones in case of default which make the risk higher in that sense and similar to a mezzanine debt.
It yields less than what you could find in other countries but French real estate market has so far proven to be very resilient and did not experience serious troubles even during the 2008 financial crisis that had hit pretty badly other markets such as in the US or, for EU countries, Spain and Ireland in particular.
The demand from investors is very high and projects are funded pretty quickly. Only the largest ones need sometimes a couple of days. A new law from November 2019 allows projects to be financed on crowdfunding platform for up to 6 M€ vs 2.5 M€ previously. In December Fundimmo, in partnership with another platform Clubfunding, has financed for 6 M€ (3 M€ each) the acquisition and renovation of an Haussman Building in the heart of Paris. This is an example of the new investment possibilities created by this new law. Crowd-real estate platforms will enable investors to reach new type of assets they were basically excluded from in the past.
Fundimmo statistics and track records:
The platform has basically a perfect track record with 0 default since they started in 2016.
They have financed to date 116 projects for over 64 M€ collected of which 49 projects (over 20 M€) have been successfully reimbursed. 1 project is currently delayed (contractually agreed). The activity increased a lot the last 2 years with 33 M€ founded in 2019 vs 8 M€ in 2017.
The average project is: € 556 K – 18 months – 9.3%
For which investors is Fundimmo suitable?
This platform is only suitable to people understanding French since there is no English version.
The minimum investment per project is € 1,000 and there is usually 2 to 4 deals per month which makes difficult and long to build a well-diversified portfolio. It is therefore more suitable for investors willing to invest a rather large amount unless you see this platform as a way to diversify further a portfolio that include already real estate platforms in different countries.
Pros / cons:
To summarise at one glance:
| – Enable to invest in French real estate market|
– Average interest rate above 9% for real estate in France
– No fee
– Real estate developers of good quality
– Very detailed information (to be requested by email) for each project enabling to make well-informed decision
– Excellent track record
– Possibility to transfer funds after signing the purchase agreement and funds are reimbursed directly on current account = no cash drag.
| – € 1,000 minimum investment|
– Number of deals still to improve
– Full bullet bonds and no secondary market/ early exit
– Platform lacking basic statistics such as XIRR
– Mezzanine-type of debt since in most of the case RE developers have secured a bank loan that has seniority to Fundimmo’s bonds.
If you are interested and want to give it a try you can visit the platform here. There is unfortunately no special offer/bonus for new (and existing) investors.