12%a year, set by contract
Fixed contractual return
You provide capital to Ayvan under a written agreement. Ayvan uses it in its property projects and business, and the agreement sets a fixed return of 12% a year on that capital.
- How the return is set
- Fixed by contract: 12% a year on the capital provided
- Linked to one project’s profit?
- No. It does not depend on the net profit of any single project
- Property ownership
- No property in your name. Your rights come from the agreement with Ayvan
- Proposed minimum
- €100,000 (20 units of €5,000), proposed and to be confirmed in the agreement
- Currency
- Euros. Other currencies are converted into euros before the capital is provided
- Main risk
- Counterparty risk: payment depends on Ayvan meeting the agreement
- Set in the agreement
- Term, payment dates, repayment of capital, any security and what happens if a payment is missed
A contractual return is not a guarantee. Payment depends on the final agreement, the legal structure and Ayvan’s ability to meet its obligations, and your capital is at risk.
50/50of the defined net project profit
Net-profit sharing
You buy a property in Spain in your own name and pay the purchase and project costs from your own account. Ayvan manages the project with its execution partner. After the sale, the net profit, as defined in the agreement, is split 50/50 between you and Ayvan.
- How the return is set
- By the project’s result: 50% of the defined net profit, not 50% of your capital
- Linked to one project’s profit?
- Yes, directly. If there is no net profit, there is nothing to share
- Property ownership
- Bought in your name. Ayvan owns no part of it; its 50% is a contractual share of net profit
- What you pay
- The purchase price and every project cost, from your own account
- Your capital
- It is in the property you own and is not repaid separately. On sale, the proceeds first cover the project costs; what comes back to you depends on the sale price
- Main risk
- Market, costs, delays and the final sale price, which can reduce the profit
- Set in the agreement
- The definition of net profit, costs, losses and overruns, decisions, sale strategy and how profit is paid
Profit is not guaranteed. Ayvan only starts a project when its plan targets a net profit of at least 12% on total project cost; the actual result depends on the final sale price and costs and may differ from the plan.
