Foxstone as an investment vehicle

Looking at Foxstone besides Crowdhouse - they now have a project where you can get 5.4% return for a fixed year (on CHF base) - seems to be a nice way to park money against negative interests.
I just don’t quite see the transparency on risks (what happens if the company goes bankrupt or the refinancing project goes bankrupt in the meantime?), so I asked them. I’ll follow if they reply.

here’s the deep link, but I think you need to register to open up the details.

https://app.foxstone.ch/en/offerings/geneve-1

Hivemind mustachian review of the above would be much appreciated.

Investors will provide the capital and carry all the risk. Real estate agents and intermediaries will earn their fees regardless and have little or no skin in the game

Sorry if I am negative but I had a bad experience owning a share of a building. Ask yourself, if they have a good investment opportunity, why would they offer investors 5.4% when banks provide mortgages at 1-2 %, private equity is also very cheap?

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what was your bad experience, if I may ask?

isn’t this the (project) about the cost of private equity?

I understand the RE agents will have their share either way. But that’s the way it works, isn’t it?

2 examples

  1. loan to fund construction of a building outside of CH. Construction never got started due to planning issues, limited company went bust and money was spent on salaries to its directors and employees. Investors were last in line after all other debtors. Luckily I sent a demand for payment before the company got wound up and I got my money back. Others were not so lucky.

  2. I purchased share of a rental building in CH. Rental returns never materialised. High maintenance and repair costs. No way to exit the investement without agreement of other investors. Building was luckily sold at a profit but real estate agent added bogus fees and passed it through limited liability companies, I made 2% over 10 years. Legal cost to get money back from reals estate agent was prohibitively high

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  1. Outside CH is more risky than a building in Geneva downtown, no ?
  2. With this investment you do not buy a share of a rental building. It is a crowdfunding investment backed with a “cédule” on the building.

So, what is the real risk ?
I am also interested in this opportunity … but what is the risk ?

There are real estate projects in Geneva that have gone bust - I know someone who lost their deposit for a flat in this one

Not sure if you saw the “Bijou” thread, there was discussion of risks on real estate projects there

EDIT: more details on the above case here

Thanks for the topic, I have the same questions about the investment with Foxstone. It seems to be too easy with no risks at all.

I got the files to invest in a building in L’Abbaye yesterday, which is located in the Vallée de Joux (beautiful area but a little bit lost lol, in the jura vaudois). 8mio for the building, that’s a lot but ok according to the experts.

It seems to easy to get 5% per year just with no effort and an investement of minimum 25k, if anybody knows the risks and legal issues with this kind of business? for example, what’s going on if the vacancy rate increase a lot ? or the building needs a high maintenance, more than the previsions? the predictions of 5% will drop to what? plus you will pay a property tax

However, this agency seems to be serious with some projects successfully done and no problem actually.

I own some REIT shares which are a good investment, that’s why I’m interested in the crowfunding real estate in Switzerland…

I prefer crowlending project. Being the owner of a part of a building means you are legally responsible.

I guess it can drop to -3% if the building is empty

Yep, I agree, crowlending seems to be a better way to invest than crowfunding.

5% does not take into account taxes.

Read up on the Crowdhouse thread, this investment vehicle type has been discussed there.

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