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Securing Your Investment – iintoo’s Investment Committee

May 16th, 2016
iintoo is a real estate social investment platform that follows the axiom that great minds invest together. We allow private investors to invest in quality real estate projects and help developers and real estate entrepreneurs by providing equity for their projects through its investing together platform.

For private investors, this means that they can now invest a small amount, starting at $25,000, in exclusive projects. iintoo’s model permits small amounts of equity contributed by individuals to become significant since they aggregate into a larger amount that provides the necessary funding needed for a large-scale project. This is the power of investing together.

Securing Your Investment

Even when investing a small amount of money, our investors, like anyone else, would like to minimize the risk that they are taking. So how do you avoid the problem of spending almost the same amount of your investment on the cost of a typical due-diligence process?

iintoo is a trusted and reputable company that adheres to the laws applicable to its investors, including American Securities laws and related rules and regulations for its US investors. iintoo always has our investors’ interests at heart, and thus we strive to negotiate the best commercial and legal terms to proactively minimize risk and maximize returns. Another thing to remember is that since we do not manage investors’ money, we will only receive a success fee when our investors’ investments perform well.

Our investment committee is very selective: Out of multiple real estate projects that apply for funding, only very few are approved for a raise. Our due-diligence process is deep and thorough – all risks and opportunities are meticulously investigated and crosschecked.

Finding prime real estate opportunities that are usually reserved to institutional investors is a challenge that many struggle with. Although we are very selective and conservative, iintoo’s global network, experience, strategic partners and resources enable us to provide our investors with an ongoing flow of quality investments.

Structure:

Our investment committee is composed of iintoo’s CEO, Chairman, business development manager, and legal and finance personnel. It is headed by a designated “Head of Committee,” who has the right to veto each potential investment. All those in the committee are experienced professionals with diverse backgrounds in real estate, finance, business and law.

Process:

  1. Prior to reviewing a project, our in-house analysts and business development manager conduct an initial, yet thorough, investigation that includes a first meeting with the entrepreneur or sponsor, as well as a review of a variety of informational sources that are relevant to the proposed project, the contractor, the location and the local market. Our sources of information are diverse – from publically available information to tailor-made reports. We also consult with our strategic partner, Meridian Capital, America’s most active debt broker, to utilize their significant resources and experience.

  2. The project is then presented to the committee for review with the goal of reaching an initial “go / no go” decision. iintoo looks at projects in attractive markets and works with entrepreneurs that meet our conditions – projects that we bring to the table are short term projects (2-3 years), with a clear business plan, that occupancy of the property (in relevant projects) is over 90% and whose upgrade has the potential of increasing their value.

  3. If the committee decides to proceed with a project, a deeper due-diligence analysis is performed. iintoo looks carefully at the offered business plan, the proposed agreement, milestones, and terms under the suggested funding structure. We also interview the contractors, its employees, as well as contacts and other references. We look at the company’s financial and legal history, and at the regulatory aspects of the project. Lastly, we travel to see the project and to meet the entrepreneurs behind it so we can form a final opinion about the project as a whole.

  4. iintoo then prepares its proposed term sheet to provide the best terms possible for our investors. We insist on an appropriate division of the profits commensurate with the fact that iintoo might bring to the project almost up to 90% of the equity. We make sure that our investors have an equally commensurate stake in the LLC that is the vehicle for the investment. This way, our investors have ownership of the property (representing their respective investment in the project). iintoo also makes sure that it always has the option to take over the project and manage it by itself in the event that the developers do not meet their obligations under the agreement. iintoo also ensures that a strict penalty mechanism is available against the developer when project milestones are not met on time. All of iintoo’s actions and strategies have one goal in mind – protecting our investors’ investments. We also ensure in our agreements with developers that additional legal restrictions and penalties are available to us so as to minimize any deviation from the pre-approved business plan.

  5.  iintoo regularly checks with the developers that project milestones are being met, and we regularly monitor each project’s balance sheet.

  6.  iintoo is not an investment fund. We do not manage money and then invest it – we raise capital ad hoc – only after a project is approved and presented for funding. Only then do we raise the capital needed and transfer it to the relevant project. This way, our investors know exactly in which project they have invested and they can decide whether to invest in the particular project. We call this “a la carte” investing. Investors decide for themselves, based on all the information available to them about a particular project, where to invest, what type of property to invest in, the type of security (debt or equity) they will purchase, and the total amount of money they would like to invest. In addition, we conduct ourselves in a fully transparent manner. At any time, our investors can access our investment portal and view the status and latest reports regarding their investments.


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