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fabinvest

FAQS

FAQs

Frequently asked questions

Fab Invest is a Real Estate Investment platform that facilitates small and mid-scale investors to micro invest in premier real estate projects and acquire Investor Share in the Project at Base Price i.e~ 40% discount on market Price.

Your Investment in the Project will be secured by Fractional Ownership in the Property Acquired as Investor Share

High Net Worth Individuals invest Big amounts in real estate projects and help the Builder fund the Project. In return for these Investments, the Builder offers the  Investors a Share in the Project i.e certain number of flats / villas as Investor Share.  These Flats / Villas are given at a BASE Price  / Landing Price which is usually around 40%-50% lower than the market price. This price is known as Base Investor Price

You can start investing on our platform with a minimum investment of 10 Lakh Rupees.

The term of every opportunity is different. Generally, our investment term ranges from a minimum of 12 months to a maximum of 36 months. You can find the exact term of the opportunity on the listing page.

Developers make scheduled payments according to the terms agreed upon in the deal which would be mentioned in the opportunity page.  The profits payout is usually every 6-12 months and changes from deal to deal. The initial investment is always  returned in full at the end of the term.

At Fab Invest, we take extreme care in curating investment opportunities to ensure that all our opportunities are of the highest quality. Our team has a collective experience of over 15 years in Real Estate Investing providing us with a deep understanding of the industry and its dynamics. We have established stringent policies and procedures to thoroughly scrutinize and review each investment opportunity before it is listed on our platform. This rigorous evaluation process allows us to maintain a high-quality standard and mitigate risks. In fact, less than 5% of all  projects we evaluate pass our investment scrutiny.

We hate risks and follow a Low Risk Approach. We only Invest in RERA Approved, Late Stage, Prime Gated Community Projects worth 100+ crores that give us atleast 1.5x entry point 

A High Networth Individual Investing Big Amount in a real estate project and acquiring Flats / Villas in the project at a highly discounted rate is a well established real estate practice.

FabInvest is fractionalizing these Big Ticket Real Estate Investments. Instead of 1 High Net Worth Individual funding the project,  multiple small investors form a company & make a Big Investment.  

A group of people owning a Large Property together where everyone owns a Fraction of the property is Fractional Ownership.  The Group forms a company and property is registered on the name of the company and every investor will own a Share in the company

Investing is ~2x safer than Buying a Flat. A real estate project in general may have 2 to 5 investors at the most, but will have 100’s of Buyers.  An Investor will always acquire Share in the project at 40-50% discount. This acquisition price itself makes Investing 2 times more safer than Buying.

Moreover, your share is legally registered. So you have all rights of a Buyer. So investing is basically like Buying a Property, but a discounted rate.

Fab Invest pools a group of Investors and forms  them into a company through the incorporation of a Limited Liability Partnership (LLP). This LLP then acts as a single High Net Worth Individual  and invests in the real estate project.

In this process, the Developer registers the collateral onto the LLP’s name and investors receive ownership in the LLP based on the amount they have invested, on a pro-rata basis .

The transaction occurs between two companies—the LLP and the developer. By adopting this structure, we aim to provide a streamlined investment environment that ensures transparency, security, and legal compliance throughout the process.

Premature exit is possible, but it’s important to note that processing such requests before the term ends can be challenging and time-consuming.

In most cases, the collateralized asset is in the form of multiple smaller pieces of land / flats and it is possible to sell one or two units to accommodate premature exit requests. However, the process of selling these units typically takes a minimum of 3-4 months and in some cases, even longer. Therefore, it is highly unlikely that premature exits can be processed within a period of less than three months.

So kindly refrain from investing your emergency funds with us, as they may not be readily accessible in case of unforeseen circumstances. Furthermore, in the event of premature exit, please note that the return rate will be a reduced to 15% per annum for the duration the funds were held.

If there are multiple premature withdrawal requests, Fab Invest  will follow a “first-come, first-served” approach. The Investor who raised the withdrawal request first will be prioritized and served first. Any liquidity generated from selling units of our collateral will be returned to the Investors in the order of their withdrawal request sequence. This ensures fairness and transparency in processing premature withdrawal requests.

All of our investments are collateralized by a real estate property that is worth around 1.5x – 2x of our Investment value and the likelihood of a Developer defaulting the payment is very rare. Moreover, the collateral secured is secured via a registered AGPA or Sale Deed, as the case may be & our Investors will have complete control over this collateral which can be sold incase of default.

In the rare event of  default, Fab Invest will utilize its extensive marketing and real estate network to sell the collateral and liquidate the asset. The total amount recovered from the sale will be distributed to the Investors according to the terms of the contract.

Every investment carries a certain level of risk, and the risk varies from opportunity to opportunity. Fab Invest, is the only platform / company that is offering a collateral for your  Investment and ours is a first of its kind business model.

However, it is essential to understand that unforeseen circumstances can arise, and in the worst-case scenario, you may be left with an asset that you obtain at approximately a 40% discount on the market price. It is crucial to self-assess your risk tolerance and make your investment decision accordingly.

Fab Investment is an online platform that acts as a facilitator between Investors and Developers. A detailed overview about each investment opportunity, including information about the developer, collateral, legal documents, legal opinions, surveyor reports, etc. are listed in the opportunity details. As an Investor, you should carefully evaluate each opportunity and make an informed decision. 

We strongly recommend you to consult with your lawyers, auditors, and advisors before investing in any opportunity. It is essential that you fully understand the risks involved. While Fab Invest strives to ensure utmost diligence in vetting opportunities, we do not guarantee the outcome, repayment, recovery, or performance of any specific Investment opportunity. 

In the unlikely event of our operations ceasing, it’s important to understand that all  agreements and registration documents are executed directly between the Developers and Investors. Fab Invest functions only as a facilitator in connecting these parties. Therefore, even if our company’s operational status were to change, all  agreements would remain valid and enforceable. Investors would solely own the collateral for the money Invested and would have complete rights over the collateral.

KEY DIFFERENCES

Fab Invest vs other Investments

Key differences in offering between Fab Invest and other investments.

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KEY DIFFERENCES

Fab Invest vs other Investments

Key differences in offering between Fab Invest and other investments.

Fab Invest

Other CRE Platforms