Understand everything there is to know about KlickOwn and our blockchain based real estate investment opportunities
These FAQs are constantly kept up to date and will be amended on an ongoing basis. If you have any questions that are not answered here, please drop us a note via [email protected]
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Attributes of my investment
Investment and payout process
Securities and risk
How can I participate in the investment opportunities?
Sign up for our newsletter to be among the first informed about the first real estate investment opportunities. When you already have a user account with KlickOwn, you will always be informed about the latest projects and investment opportunities via email and on our website.
How do I invest with KlickOwn?
Investing with KlickOwn is done completely electronically on the platform and takes only a few minutes. To do this, go to the project you wish to invest in on our website and click on the "Invest Now". A small window will appear, asking you to provide all the relevant data for the investment process. In the last step, all documents, contracts and a risk warning are provided. Once you have read and confirmed these, you can complete the investment process. After a successful investment, you will receive an e-mail explaining the final steps. Payment is made by bank transfer or in cryptocurrencies such as Bitcoin and Co.
How can I find out about new investment opportunities (projects)?
You will find a project overview with the most important information and conditions for each project on our website under the section “Projects”. In addition, you can download an exposé for each project as a PDF file. As an investor and as a user of the KlickOwn platform, you will be informed at regular intervals about the progress of the projects (e.g. via our blog or newsletter). You will thus receive direct information, e.g. on the completion of important construction phases or on the status of the apartments sales.
Are the selected projects and investment opportunities audited by the platform? How are the projects selected?
KlickOwn points out that we only conduct a limited review of real estate projects and project developers according to certain formal criteria, which does not allow statements to be made as to whether the information and data on the real estate project provided on the platform are accurate. In particular, KlickOwn does not check whether and to what extent an investment by the user in real estate project development, regardless of its form, makes economic sense. This assessment and the decision for his investment is made by the user independently and on his own responsibility.
Who can invest with KlickOwn?
Anyone who is not a US person under FATCA and does not invest from counties that are restricted, can invest on our platform. Simply go through the KYC/AML process and you’re ready to start investing today.
What is the minimum investment amount?
The minimum investment amount is 10€. We suggest to diversify your investments by investing in several projects.
Who manages the projects?
Investment projects are being offered and managed by our partners and our network. You can find more information related to a single project in the documents we provide.
What is a real estate bond?
A bond is a traditional financial product that can have a variety of characteristics. One key characteristic is the repayment of the invested amount at the end of the term, which is accompanied by a fixed or variable return throughout the lifecycle of the bond. The KlickOwn real estate tokens are not different: the issuer is obliged to pay back 100% of the investment at the end of term, as well as a variable return that depends on the performance of the assets.
What is an STO?
A security token represents an investment contract into an underlying investment asset, such as stocks, bonds, funds and real estate investment trusts. A security represents the ownership information of the investment product, recorded on a blockchain. KlickOwn is using this exact protocol. Once you have invested, you are owning security tokens, which are representing the ownership of your real estate investment.
Does each real estate project have its own unique token?
Yes, each property / project will have its own unique token. This means that you can invest during the crowd-sale and you will receive unique tokens legally representing your ownership of the bond representing the property you`ve just invested in.
How is the return for the investors generated?
The total return for the investors consists of two parts: First, there is an annual return generated from rents which is expected to be between 4%-6% p.a. Second, if a property is sold, the proceeds will be handed over to the investors. These proceeds are not generated annually, as the properties will only be sold if there is a good offer by other real estate investors.
Will the return be payable in crypto or fiat?
The return is paid in fiat or crypto. Token holders can decide according to their preferences. In the near future, we will offer crypto payments in all major currencies, including stable coins.
Will investors receive back their initial investment at the end of term?
Yes. It is the nature of a bond that the initial investment will be repaid at the end of term. In practice, this means that each invested Euro must be repaid. For example, if 5% p.a. return has been generated throughout a term of 10 years, 150% of the initial investment will be paid back to the investors.
How do I know about the actual rate of return?
The annual rate of return will be calculated and reported by the issuer. In addition to that, an annual audit is mandatory by external auditors. They will also check if the funds have been used in a compliant way.
How are dividends paid?
Dividend payout is managed by the asset manager. It happens once every 3 months. If secondary markets don’t emerge or don’t provide sufficient liquidity, the asset manager will tend to pay out dividends in order to make investors happy. Dividends are being paid out to all those token holders that hold token on a given date. Investors need to hold token on this specific date in order to receive payouts.
How much return can I expect?
Depending on the project runtime, you will receive a fixed coupon with the specified return rate, paid out on a quarterly, half-year, yearly or one-time basis.
When can I sell my tokens?
Once the initial investing period of each project has ended, your wallet will be credited with the unique tokens. You can trade these tokens instantly on a decentralized stellar lumen exchange.
Are the KlickOwn real estate tokens freely transferable to any Stellar address or only to whitelisted addresses?
The KlickOwn real estate tokens are freely transferable on the public Stellar network, to any Stellar address. The issuer of the particular tokens maintains a whitelist for all buyers of the token in the primary issuance. No other whitelists are maintained.
How do you solve the secondary market issue on Stellar regarding KYC/AML?
It is up to secondary market operators to ensure that token buyers are allowed to do so. The issuer assumes no liability with regards to secondary market transactions.
Can the KlickOwn tokens be traded on DEXs?
Yes. But it is up to DEXs to list the tokens.
On what exchanges will the token be listed?
We are in contact with various exchanges. At the moment, they are either lacking the license to do so or the tech to run the exchange. We expect the first regulated exchanges to launch in 2020. Until then, OTC, DEX and p2p trades are possible.
What happens if a sanctioned individual buys token on a secondary market?
It is up to secondary market operators to ensure that token buyers are allowed to do so. The issuer assumes no liability with regards to secondary market transactions. The issuer is prohibited by law to serve sanctioned individuals.
What happens to a project if the minimum investment is not reached?
If a property crowd-sale is not successful (meaning the soft cap is not reached) you will be able to withdraw your investment. We will send your funds back to you.
When can I expect profits?
Each project has a specified return period for paying out the return rates. Please get more information about this visiting our website and / or the projects-specific subpage.
Are the return rates fixed?
You will receive the return rates, which are specified in the material related to the project. However, please keep in mind that your investment is always bearing a certain degree of risk and that returns are not guaranteed.
Are the KlickOwn real estate token freely transferable?
Yes. It is a regular Stellar (XLM) compliant token. It can be transferred to any compatible wallet.
Is there a minimum holding period?
No. The tokens are freely transferable from the very beginning.
Are the taxes paid by KlickOwn?
The final withholding tax is withheld and paid by KlickOwn. The interest income must therefore be declared in the investor`s personal income declaration. For the treatment of interest income on investments from business assets or further tax questions, please contact your tax advisor or tax office.
How will the tokens be distributed?
With the end of the initial investing period of each project, KlickOwn will distribute all security tokens to the integrated wallet of the investor. Wallets are automatically created during the account opening.
Is KlickOwn regulated?
KlickOwn AG is registered as a tied agent of NFS Netfonds Financial Service GmbH in the public register kept on the Internet by the Federal Financial Supervisory Authority (BaFin). You can view the register at www.bafin.de. KlickOwn AG offers the following financial services exclusively on account and under the liability of NFS Netfonds Financial Service GmbH as a contractually bound intermediary in accordance with Section 2 (10) of the German Banking Act (KWG): The investment brokerage within the meaning of section 1 (1a) sentence 2 no. 1 KWG of financial instruments pursuant to section 1 (11) KWG
What are my rights and responsibilities?
A subordinated loan does not involve any direct rights of participation, such as at the general meeting of a stock corporation. In principle, there are no other obligations for investors apart from the provision of the investment amount chosen by you. In particular, there is no obligation to make additional contributions. In your own interest, however, you should inform us of any changes to your contact details or bank details in order to guarantee a smooth repayment of your capital, including interest at the end of the term.
What happens if someone steals my tokens?
Ultimately, token buyers will want to know: what happens when my wallet is hacked and my tokens are stolen? Is my legal claim against the issuer gone, or is it just the tokens that are missing but the claim still lies with me? As a first rule, we will always honor the claim of token holders. If a token holder files an issue with us through our investor dashboard, stating that their tokens were stolen, we will refrain from paying out dividends to whichever wallet currently holds the affected token. Instead, we will escrow the dividends in question with a trusted third party to hold on to them until the dispute is resolved. We will, however, not freeze the individual token. This is not something we can do, according to the technological governance regime of the Stellar token smart contract that we’re using. It is then up to the parties of the dispute to resolve the matter amicably or in a court. Once a legally binding court decision has been submitted to us, we will pay out the dividends to the respective parties that are entitled to them according to the court order.
What has to happen for me to lose money? / What are the risks?
As with all future-oriented economic activities, there is a risk of a total loss. However, there is no obligation to make additional contributions. This means, for example, that the distribution of the sales proceeds of a project could be in the following order (which would also apply in the event of insolvency): The Bank`s debt capital is serviced
Subordinated loans are serviced
Project executing agency may transfer profits
Is the service for free?
Yes, we do not charge any additional fees or rates for using KlickOwn. You can invest without additional charges. There may be third-party fees such as bank-wire fees or blockchain transaction fees when sending your investing money. These costs are covered by KlickOwn directly.
What is the BaFin?
BaFin is short for Bundesanstalt für Finanzdienstleistungsaufsicht. It is the German financial regulation authority.
Which data do I have to enter?
For the investment process, we require the following data in order to comply with legal identification requirements: • Full name
• date of birth
In addition, the following details are necessary for correct payment processing and repayment of the investment amount plus interest:
• Bank details (We do not store any bank details about you. These will be forwarded directly to our payment service provider and stored here.
• Tax identification number
For direct communication, it is helpful if you also enter your telephone number in addition to your e-mail address.
Is KlickOwn free of charge?
Yes, KlickOwn does not charge any additional cost.
How is KlickOwn financed?
During the crowd investment of a project, KlickOwn receives remuneration from managing the real estate. This is how KlickOwn pays for the costs incurred for customer service, platform, marketing measures, etc.
What happens if the real estate market collapses?
In recent years, we have seen more often that unforeseeable external factors could lead to the collapse of the real estate market. However, this does not necessarily lead to adverse effects for a real estate project. In conurbations with housing shortages and population growth at the same time, for example, the effects are unlikely to be noticeable and therefore do not jeopardize a real estate project. But even in this case, your right to a timely repayment of the loan amount including interest remains unaffected.