Best Fixed Income Investment In Singapore

Real estate-backed investments are investments that are backed by real estate assets. The secured property serves as collateral, providing a safety net in case of default.

If the borrower delays or defaults on the repayment, the property can be sold to recover the outstanding loan amount to be repaid to investors.

Investing in our fixed income opportunities backed by real estate is different from investing in property. An investment in property means that you will benefit when the value of the property appreciates. When you invest in our Deals, you are lending to the property owner / Developer, i.e., the Borrower. Regardless of whether the property value appreciates, your loan remains and the Borrower still needs to repay what has been borrowed.

When investing in property-backed investments, it is still important to understand the value of the property, and the factors that might affect it. It is also important to understand whether you are lending to the full value of the property, and if there are other investors, i.e., Lenders who may have a legal interest before yours. Typically, we ensure that we have the first charge on the property, meaning that we are amongst the first who will be repaid should the borrower experience delays or a default.

We specialise in investing in commercial real estate private credit, which is a niche field. Hence, we are able to ensure that the correct property and credit due diligence is carried out.

A default can occur when there is a delay in repayment of interest or principal by the Borrower, or if the Borrower goes bankrupt.

As an investor with BigFundr, there are multiple layers of protection in place to mitigate the risks associated with loan defaults or the possibility of the Developer going bankrupt.

All our Deals are backed by real estate as collateral.

This means that if a Borrower defaults or the Developer goes bankrupt, BigFundr has the right to liquidate the property to recover the funds. The Loan-To-Value (LTV) ratio is capped at 70%, ensuring that we only lend up to a maximum of 70% of the property's value. This provides a buffer for any potential changes in the property value on the market that could result in asset devaluation.

BigFundr holds the first legal charge on the real estate.

BigFundr will be the first to be paid back upon the sale of the property, regardless of the property liquidation outcome.

We work with reputable Fund Management Companies that give BigFundr a buy-back provision.

These Fund Management Companies have an agreement with BigFundr to buy back the loan notes at an agreed time. This gives you, our investor, the assurance that even in the case of a delay or default, your funds will be disbursed to you on time.

All our loans benefit from a personal guarantee by the Borrower Entity.

In the unlikely event of a default, we have the right to liquidate the real estate to recover the loan. If there is a shortfall on the loan from the liquidation of the property, we can seek recourse from the Borrower to make good on the loan.