Why LandEx Is One of the Safest Platforms to Invest With
Explaining the structure and workflow of LandEx.
Explaining the structure and workflow of LandEx.
LandEx is a land investment platform that enables any EU, EEA, and UK citizen to conveniently invest in land, mainly farmland.
Investing in land is a different type of business than investing in stocks, bonds, or P2P loans, for example.
The reason is that land ownership cannot be fractionalized (technically, it can be fractionalized, but the cost would be in millions of euros).
So, how does LandEx enable different people to invest in the same plot?
Read on to find out.
The Loan Agreement
LandEx is a crowdfunding investment platform.
This means that several people need to come together to invest in an asset — in this case, land.
Since land ownership cannot be fractionalized, LandEx uses a loan agreement and distributes shares of the loan to users that invest in the land.
Here’s how it works.
LandEx secures a plot and lists it on the platform.
LandEx users invest in the plot. “Investing” means that LandEx users lend money to LandEx.
Once the plot has been fully funded, LandEx uses the money lent by its users to buy the plot.
LandEx distributes the shares of the loan to its users.
The loan mirrors the value of the land.
When the value of the land goes up, so does the value of the shares.
This system ensures that users benefit from all the upsides of land investing, without any of the downsides.
The downsides are the fees paid to the notary, the management of the land, the taxes, etc.
LandEx handles all of it.
The Structure of LandEx
LandEx is made up of three companies in order to protect the users in case the platform goes bankrupt (unlikely, but better be safe than sorry).
The first company is the company that buys and holds the land.
The second company owns and operates the LandEx platform (the website and the app.)
The third company pays the salaries of LandEx employees and other expenses.
As we can see, the first company cannot go bankrupt.
It holds the land acquired with the money lent by LandEx users.
In case the second and/or third company goes bankrupt, the assets in the first company will be protected.
The first company will simply sell the plots to the highest bidder, and return the investment and its returns to LandEx users.
Conclusion
Too many users investing on P2P and other investment platforms have lost their money. The most common causes are:
Platform bankruptcy
Fraud
Bankruptcy of the borrower
When you invest with LandEx, your considerably minimize all of these risks.
Your land investment is highly unlikely to go bankrupt due to both the intrinsic value of land and the nature of the land.
Land, unlike a company, doesn’t go bankrupt. It will remain productive as long as it is well-managed.
Interested to begin your land investment journey?
Go to landex.ai and become a land investor today.
The content of LandEx’s blog is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice. Nothing contained on the LandEx Medium blog constitutes a solicitation, recommendation, endorsement, or offer by LandEx or any third party service provider to buy or sell any financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.