Glossary
Updated over a week ago

A

Annual Rental Income: This is the expected rental income on your investment over a period of 1 year.


Annual Return (%): The overall percentage gain on your investment over a period of 1 year. This includes both rental income and capital appreciation over 1 year period.


Appreciation: Appreciation refers to the increase in value of each listing over time due to factors like market demand, economic growth, or improvements made to the asset. It reflects the gain in worth that each listing experiences beyond its original purchase price.


APY: APY stands for "Annual Percentage Yield," representing the total interest or returns an investment could generate in a year, including compounding effects.


Audit fee: Fee paid to the independent auditor for the first year of operations.


B

Broker fee: Fee paid to the broker/agent settling the deal.


C

Current Valuation: Current valuation refers to the existing estimated monetary value of a property.


E

Escrow: When your property is in escrow, the community's invested funds are securely held until the full funding target is met.


F

Fiat Balance: Fiat balance refers to the amount of traditional currency (EUR) held in the wallet.


Funding Statistics: Funding statistics refers to statistical data related to the funding/ financing of the project.


H

Hybrid exploitation: Hybrid exploitation refers to a combination of various strategies or approaches that are being used to generate income or profit from the property.


K

KYC: KYC, or "Know Your Customer," is a protocol where companies collect and verify customer information to ensure their identity and assess potential risks, aiming to prevent fraud and illicit activities.


L

Legal & regulatory fee: Set-up fee and 1st-year charges from the corporate service provider.


M

Marketplace: The marketplace is the place where properties are listed for funding.


Memorandum: Memorandum refers to a written document that outlines important information, details, and financials about a property.


N

Net cash yield: Net cash yield, in real estate and investing, represents the actual income generated from an asset after deducting all expenses such as taxes, maintenance, and management fees. It provides a clear picture of the true profitability of the investment by factoring in these costs.


Notary fee: Fee paid to the notary or trustee handling the transaction.


P

Projected Exit Period: The projected exit period refers to the forecasted period that is expected when to exit the investment.


Projected income: Projected income refers to the forecasted amount that is expected to be earned over a certain period of time from the exploitation of the property.


R

Raise: Raise means how much funds must be raised to fund the property.


Refurbishment costs: Costs for refurbishing the property.


Reserve pool: Reserve pool for the property maintenance, will be returned to investors if not used.


ROI: ROI, or "Return on Investment," is a financial metric that measures the profitability of an investment by comparing the gain or loss generated relative to the cost of the investment.


S

Settlements: Settlements refer to the financial settlement from the investors.


Sponsor equity: Sponsor equity is the initial investment provided by the main backer of a project, signaling their belief in its potential and often attracting further external funding.


SPV: SPV stands for "Special Purpose Vehicle," which is a legal entity created for a specific, business purpose such as holding assets, managing risks, or facilitating financial transactions. Every property on Propchain's platform is purchased through a single SPV.


T

Total Projected Return: The overall projected percentage gain on your investment over the overall holding time of the asset. this includes both rental income and capital appreciation over one year period.

Total rental income + capital appreciation - original investment = total projected return

Transaction costs: Transaction costs are the expenses and fees associated with the buying or selling of properties, which go beyond the actual price of the item itself.


Transfer taxes: Fee paid to the land department/tax authority for transferring the property.


V

Valuation fee: Fee paid to the independent valuation company providing a valuation report.


Y

Yield: Yield refers to the amount of income or profit generated from an investment or asset, typically expressed as a percentage of the initial investment.

Did this answer your question?