Passive real estate backing means your money backs a real estate property project, without being actively involved in the day-to-day management of the property. This means you save the time landlords typically spend caring for the property, such as upkeep and maintenance, marketing of the property and short-term lease arrangements. In addition, you can already start backing real estate from very affordable amounts, as you’re not buying a whole property.
What’s the benefit of passive real estate backing on Lugani?
Lugani makes real estate accessible to the masses. Such purchases typically require significant capital to buy an entire property. Moreover, the purchasing process can be lengthy, difficult and considerable fees or taxes can apply.
This makes it difficult for many retail investors to allocate capital to real estate, and even more challenging to build a well-diversified portfolio combining real estate with other asset classes. On Lugani, we are democratising this: You can back in small fractions of real estate, starting from just 1% of the value of the property, and conveniently build a diversified portfolio with confidence.
What return can I expect from passive real estate backing?
The return is based on cash flows from the real estate property. You’ll able to earn monthly returns from net rent payments. You can read more about the expected return for a particular property in the offer details, while getting a monthly update on the income generated on the property by Lugani. The monthly rewards may vary from month to month due to seasonal aspects. However, we are continuously looking to improve the cashflow on the property based on demand, supply and overall management of the properties. There for, you can expect growth of your monthly rewards over time.
Do I back a loan on the property?
No. All properties are 100% owned by Lugani.
Do I own the property directly?
When you back a rental real estate project on Lugani, you will own a Backing Agreement with Lugani, the 100% owner of the underlying property. You won’t own the underlying real estate directly, however this agreement is a legally binding contract with Lugani. This agreement, enables Lugani to send you your crypto rewards and give you discounts on your holidays to all its properties. Moreover, it enforces Lugani to Buyback this agreement in case exercised by you. This makes backing real estate accessible to many investors who can’t afford to buy a property or just don't want to own and manage real estate in Asia, as it is time consuming and very difficult to manage efficiently as a foreigner.
What’s the typical backing term for real estate projects on Lugani?
There is no real maturity of each property on the real estate on Lugani. Generally, due to our extensive due diligence we expect to hold the property for the long-term. However, in case there would be a potential buyer who sees the value in our property, we are open to the sale of properties and our backers also profit from the potential capital appreciation of the property. For details related to a specific conditions, please refer to the terms and conditions outlined in the project. In case, you would need your initial backing amount, feel free to exercise your BuyBack Guarantee from Lugani. Lugani is a well capitalized company. For more information please read the Buyback Guarantee section.
Where will I receive my rewards?
All your monthly rewards will be deposited to your crypto wallet. Your rewards will be transferred in USDT / USDC to your crypto wallet.
Can I receive my rewards to my bank account?
Yes and No. No, your rewards will be deposited to your crypto wallet. Additionally, depending on your crypto wallet, you could convert your crypto into your local currency and transfer it to your bank account. This is however an external service which we don't provide.
