SmartCrowd fees are structured in 3 different ways:
1) Entry Fee: 1.5%
When: This is a one-time fee on entry into each property investment
Why: This covers the costs associated with elements like escrow services, anti-money laundering compliance checks, property sourcing, due diligence, processing, and 3rd party reports.
Example: Lets say you want to invest AED 10,000 , SmartCrowd will take 1.5% Investment Entry Fee => AED 10,000 X 1 .5% = AED 150
2) Annual Administration Fee: 0.5%
When: This fee is charged quarterly on a pro-rata basis and deducted from your wallet.
Why: This fee is to provide administration services for the SPV (the investment vehicle) used to protect your investment, complying with regulatory reporting services, and maintaining a secure digital platform.
Furthermore this fees also covers services such as monitoring property management and regular performance reporting back to the investors.
Please note, we start calculating the fee from the day the property is transferred and the transaction concluded rather than from the day we receive your funds. So, you pay when you earn, not when you start using the platform.
Example: Lets say you have invested AED 10,000 in a property, SmartCrowd will charge you a 0.5% annual fee on a quarterly basis => AED 10,000 X 0.5% = AED 50 Annually ==> AED 50 / 4 = AED 12.5 Monthly
3) Exit Fee: 2.5%
When: This is a percentage of the sale price on exit.
Why: This goes towards the various legal and administrative management required at the exit.
Example: Lets say your AED 10,000 investment in the property has appreciated in value and now your ownership is valued at AED 15,000. SmartCrowd charges a 2.5% on the sale price ==> AED 15,000 X 2.5% = AED 375