Co-investing or fractional real estate investing is a strategy that allows more than one person to own a real estate assets such as land, residential property or commercial property while benefiting from rental income (dividend yield) and value appreciation from that asset.
A Slot on Coreum real estate investment platform represents 1% of a property. You can buy and own 1% or more of a property. For example, a duplex in Lekki, Lagos costs ₦50,000,000 and generates ₦3,000,000 in rental income yearly. This property also appreciates in value by 10% every year. Instead of buying the whole property, you can own 1% of the property by investing ₦500,000. Your ₦500,000 investment will yield ₦30,000 dividend yearly (i.e. 1% of ₦3,000,000 rental yield) and your investment will appreciates by 10% every year.
Return on investment on a Real Estate asset is split into two (2) folds.
1. Rental Yield on Revenue Generating Assets : On our platform, rental yield is subject to rental income generated from the asset and this varies per property. Rental yield could range from 7 – 12% depending on the type of asset and its location.
2. Value Appreciation – Real estate assets appreciate in value over time but it is impossible to know the actual future value of an asset. However, based on our internal forecasting tool, we make predictions on the potential value of the asset during the investment period. Our projections could be more or less than the actual reality.
To ensure that our investors can exit their investments at anytime, we have created a secondary market option that allows investors to buy and sell slots of real estate at their own time and price. Learn more
Coreum is not regulated by Security and Exchange Commission (SEC). However, our Trustee, FBNQuest Trustees is a subsidiary of FBNQuest Capital, a company regulated by the Security and Exchange Commission of Nigeria.
Coreum does not in anyway eliminate the risk involved in real estate investing. However, we try to minimize the risksand uncertainties by using our in-house risk management framework. The risk involved are:
1. Return on Investment: Actual Value Appreciation can be lower than our projected value appreciation.
2. Full subscription risk: A primary listing on Coreum may not be fully subscribed requiring that funds are returned to all investors.
3. Secondary Market : Exiting through the secondary market is not guaranteed. It is subject to willing buyer and willing seller aggreement.
FBNQuest Trustees acts as Trustee and Nominee to all investors on this platform. All funds invested and assets purchased are held in trust by FBNQuest Trustees on behalf of all Co-investors till Maturity. Our payment system is secured by paystack.
Coreum Real Estate Solutions Limited is a Real Estate Company registered in compliance with the Company and Allied Matters Act with CAC Registration Number RC1503916. Coreum is a proptech platform managed by Coreum Real Estate Solutions Limited. The platform provides real estate investments to its users. All investments are held and managed under a trust deed between Coreum and FBNQuest Trustees, a member of the FBN Holdings, a SEC Regulated Entity.