Frequently Asked
Questions

Crowdfunding is the process through which more people (crowd) contribute sums of money (funding) to finance a business project through an online platform with the option of getting a reward in return.

Specifically, Real Estate Crowdfunding consists of applying all the tools that fall within crowdinvesting to the real estate area, financing real estate initiatives.

Through BuildBull platform, it will be possible to invest (as an investor) and get capital (as a proposer), where the investor subscribes company shares that will carry out a real estate project (Special Purpose Vehicle), becoming a full shareholder, entering into company risk’s capital, and once the operation will be successfully completed, the investor will get the invested capital increased by the return that depends on the outcome of the operation.

Support can be contacted through a special form on the contact page or sending an e-mail to info@buildbull.com. Service is available from 9AM to 6PM, Monday to Friday on non-holiday business days. Response times may vary depending on the volume of tickets received, we reply to requests within one business day.

Complaints may be submit to e-mail address complaints@buildbull.com , using the template made available on the website in the “Complaints” section.

We only select and propose innovative and high value real estate projects. We typically raise shares and units through specially established special purpose companies, usually under Italian law, but our projects are carried out in the most exclusive international locations.

BuildBull is open to everyone. It’s enough to be of legal age. To verify the investor's knowledge of basic financial concepts, his understanding of the risks involved in the investment and his ability of tolerance of potential loss of capital, prior completion of an entry knowledge test and completion of the simulation about the simulation of the ability to bear losses is required.

If, as a result of the test, the investor is flagged as inappropriate, he will be allowed to go on with the investment provided that he has read the relevant disclaimers. Anyhow, it must be confirmed that he has understood a disclaimer warning that crowdfunding investment may lead to the loss of the entire capital.

Under the applicable regulation, investors are divided into two categories: sophisticated and non-sophisticated.

Among others, sophisticated investors, under Directive 2014/65/EU, are all those authorized and regulated to operate in financial markets (credit institutions, investment firms, insurance companies, etc.), large companies that meet the size requirements of the Directive, as well as institutional investors whose main activity is to invest in financial instruments.

In addition, those investors who expressly request, and who meet the capital and experience requirements set forth in Annex II of Regulation (EU) 2020/1503 (so-called ECSP Regulation) may also be categorized as sophisticated investors. It’s BuildBull’s liability to verify these requirements.

Sophisticated investor status can be applied for “under request” by writing to investor@buildbull.com and submitting the documentation specifically requested to prove the requirements.

BuildBull approves the request unless it has reasonable doubts about the certainty of the information provided, confirming to the investor the approval of the application which is valid for two years. Investors who wish to keep the sophisticated investor status after the validity period deadline will need to submit a new request.

Non-sophisticated investors, on the other hand, are, on residual basis, all investors who do not qualify as sophisticated investors. Non-sophisticated investors are afforded a more protective treatment, which includes, in particular, an appropriateness check and a simulation of the ability to sustain losses, specific warnings/alerts where the investment is considered inappropriate, a pre-contractual cooling-off period during which the potential investor may withdraw the offer or its expression of interest at any time, without having to provide any reasons or suffer any penalties.

The cooling-off period starts from the moment the non-sophisticated potential investor makes his investment offer and ends after 4 calendar days.

Firstly it’s required to register at www.buildbull.com and then enter the platform with the sign-in procedure.

After identifying the project of interest and carefully reviewing the relevant form with details, it’s possible to proceed by clicking “Invest now”.

The system will start a procedure with the following steps and related requests:

Once the process is complete, the system will send an email with instructions for finalizing the investment by bank transfer.

Investing in a project on the BuildBull portal, the investor will subscribe to a share in the offering company, typically a corporate vehicle created for the operation.

If the offering company coincides with the company that will actually carry out the real estate development operation, the investment is a direct one. On the other hand, if the offering company invests in the development company (which will carry out the real estate development activities), the investment will be indirect. This one is considered the prevailing mode for projects submitted by BuildBull. More information is available in the Key Information Sheet of the project.

The minimum investment amount is defined according to each individual project.
Minimum investment thresholds are available in the data sheet of each project (Key Information Sheet).

With BuildBull, investors pay no fees of any kind (subscription, management, performance or refunds). In case of successful capital raising, it will only be the proposer who will pay to BuildBull a fee on the service offered to him. The investor will only sustain the costs provided by his bank to make the deposits. For the rubrication service, which is optional, the terms and conditions of "Directa SIM" available at www.directa.it will apply.

Equity crowdfunding projects are venture capital investments, and can also involve the risk of partial or total loss of the money invested. So, the invested capital can’t be guaranteed, also because the investment isn’t covered by deposit guarantee schemes or investor compensation schemes. Therefore, it is necessary that the sums invested are suitable to the investor’s financial resources.

In each project data sheet, the estimated gross ROI of the operation and the expected duration are indicated. ROI indicates the estimated return, that’s the expected remuneration while, the expected duration, refers to the date, also expected, of project completion from the successful closing of the offer.

ROI and duration are estimated by the proposer as they are subject to different factors that could vary the real estate operation.

If and when the real estate project is successfully completed, you will receive the capital you invested increased by the relative return generated.

It is important to remember that investing in crowdfunding projects involves risks, including the risk of partial or total loss of the money invested. The investment isn’t covered by deposit guarantee schemes established under Directive 2014/49/EU of the European Parliament and of the Council, nor by investor compensation schemes established under Directive 97/9/EC of the European Parliament and of the Council. Moreover, the return (ROI) is not guaranteed, so it’s possible to receive no return or receive a return, even lower than estimated.

In addition, the instruments offered by the proposing companies are not traded on any institutionalized market (in particular regulated markets or multilateral trading systems), nor are they secured by repurchase agreements or similar mechanisms. This involves that the acquired shares as part of crowdfunding campaigns are highly illiquid, subject to high difficulty of disinvestment and demobilization (it’s difficult to turn into cash quickly).

There are two routes to achieve the dashboard with project progress information:

- through the "Updates" link found in each project's tab;

- in the "Dashboard > Asset" you will find the summary dashboard with the set of current investments with all the updated information documentation.

In the event that the minimum raising target isn’t reached, all of the invested capital is returned to investors with no additional cost.

To non-sophisticated investors is recognized a pre-contractual cooling-off period during which they may revoke, at any time, their offer to invest, without providing any reasons and without incurring any penalty. The cooling-off period starts from the moment the non-sophisticated investor makes his investment offer on the portal and ends after 4 (four) calendar days from that date.

If the non-sophisticated investor is also qualifies as a consumer within the meaning of Legislative Decree 205/2006 (that's called "Consumer Code"), the time limit for the right of rethinking is increased to 14 days. Upon deadline of these terms, it will no longer be possible to revoke the order.

The right of rethinking may be practiced by giving notice to BuildBull through the portal, in the dedicated section to the management of its investment, or by an e-mail communication sent to reflection.period@BuildBull.com, or by registered letter with return receipt (to the address of the registered office of BuildBull) or P.E.C, without charge.

Once the withdrawal right is exercised by non-sophisticated investors, as provided herein, BuildBull will refund the amount invested on the same payment method already used by the non-sophisticated investor during investment.

For BuildBull the privacy of its users is important and complies with all applicable regulations. More information can be found in the privacy policy here available.

The entry knowledge assessment is a tool to protect non-sophisticated investors who want to make an equity investment.

Regulation (EU) 2020/1503 stipulates that, before giving non-sophisticated investors the opportunity to make investment operations, BuildBull must subject such individuals to an entry test in order to verify their experience, investment goals, financial situation, and basic understanding of the risks involved in investing, as well as investing in crowdfunding projects (so-called entry knowledge test).

At the end of the testing step, in the event that BuildBull believes that the non-sophisticated investor doesn't own knowledge, skills, or experience, BuildBull will warn the non-sophisticated potential investor that the offered services through the platform may be unsuitable for him and it will send him a risk warning. To go forward with investment operations, the non-sophisticated potential investor have to recognize that he has received and understood the warning.

To complete the testing step, BuildBull submits non-sophisticated potential investor to a simulation about his ability to bear losses, calculated as 10% of his net worth per sum of trades, or as 5% of net worth per single operation.

The loss-holding ability check must be done on each investment; by entering the net worth and authorizing us to keep it for 12 months you will avoid being asked for it every time you join a campaign.

Rubrication also known as " investment’s heading scheme " is a service that ensures that a licensed intermediary is send to subscribe shares for investor. This allows the investor to sell -even while maintaining anonymity- their shares at any time without having to use a notary and without sustain administrative costs. BuildBull has chosen, as intermediary, Directa SIM Spa (a securities brokerage firm registered under resolution 11761 of 22/12/1998, at number 59 of the Register maintained by Consob).

How to join?

To join the service, you must be a customer of Directa SIM. To do this you need to access the Dashboard in the "Profile" section and enter the "Rubrication" area. By clicking on the link you access the form and the Directa SIM account opening procedure. Once the procedure is complete and you have achieved the Directa SIM customer code, enough enter it in the appropriate field within the "Rubrication" section located in the "Profile" area of the Dashboard. Within 48 hours a system email will confirm the successful completion of the login procedure. So, the subscribed shares to be rubricated by checking the relevant box.

How much does it cost?

Rubrication service may vary on the type of the account.

STANDARD ACCOUNT – Directa SIM cost service activation service is take on by BuildBull, which will take on the one-time cost of 15 euros for individuals and 80 euros for legal entities. The cost of 30 euros for each campaign invested in remains the responsibility of the user. Minimum investment ticket to benefit from the free is €2,500.

EXECUTIVE or PRESTIGE ACCOUNT - Directa SIM cost service activation is taken on by BuildBull, which will take on the one-time cost of 15 euros for individuals and 80 euros for legal entities. The cost of 30 euros for each campaign invested in remains the responsibility of the user. Minimum investment ticket to benefit from the gratuity is 2500€ and, in addition, with minimum investment ticket of 5000€, BuildBull will take on of the Alternative header scheme for each specific campaign, also taking on the cost of 30€ for each campaign in which the user decides to invest.

To find out all other benefits only for BB Elite members Click here.

Liquidation preference is a possible clause included in the proposer company's articles of incorporation that protects BuildBull investors with specific pre-emption against other shareholders. It applies in the event of liquidation or other events related to the sale of the company and division of proceeds. This clause ensures a priority over other shareholders in the liquidation of their share. Not all projects proposed in the platform include the introduction of liquidation preference. Please, refer to the key information sheet of each project to check if it's present.

Each transfer will be directed to an escrow account of the offer, which remains unavailable until the end of the subscription offer, the bank details are expressly indicated in the offer documentation.

Upon completion of the transfer and receipt of the amounts invested, a confirmation of completion of the order will be sent by e-mail. The progress of the order can always be checked in the section "Dashboard > Transactions".

Overfunding occurs when the capital invested with the raising exceeds the minimum target set by the offering company. In that event, the proposer has the option to continue the collection up to a maximum target (provided and indicated within the key information sheet) which, if reached, automatically closes the campaign. In case of Overfunding, the estimated return remains unchanged, unless otherwise stated.

Honorable and professional individuals, with proven experience in the real estate, who have invested, or decide to co-invest, in the operation being offered may use our services.

Please contact us if your proposal has the following characteristics:

Preferably duration for project completion, 24 to 36 months

Exit: Sale

Total value of the development operation (total development costs): Minimum € 1M

Overall collection target on the platform: Minimum € 300,000

Submit an application is enough by filling out the submission form within the "Submit your project" area on the "Raise capital" page. Our experts will contact you as soon as possible to request the documents required to start the preliminary analysis. For more information you can still write to developer@buildbull.com with the subject line: My Real Estate Project - Proposal.

As part of the proposal, the proposer will have to to upload the documentation required for the preliminary assessment of the proposal by the BuildBull team. This information will concern both the submitted project, the person or the people of the proposer (broadly speaking) and, if already established, the legal entity on whose behalf the proposer is acting. As part of the preliminary review, BuildBull will verify, among other things, the compatibility of the proposed project with BuildBull's goals and mission, as well as whether the proposing company's directors and qualified partners meet specific honorability requirements.

In case of success of the preliminary verifications, the project and related documentation will be fully submitted to BuildBull for the purpose of the related and following evaluation of the project's merit.

The proposer candidate will be required to produce proper documentation, as such evaluated by BuildBull, for each offer it intends to submit on the Portal, including a detailed description of the real estate project (such as of an exposé / property outlook, clear and systematically organized), both from a technical and economic-financial point of view (for example type and amount of economic resources employed, expected return, timeline, risks, state of the art of the project), and of the proposer itself (such as proposer and sponsors' track record, other useful information for investors).

BuildBull, based on the documentation collected, with the support of leading real estate technical consulting firms, will prepare an "Info Memorandum" including a summary of the project as well as its economic details, according to a representation as clear and understandable as possible.

BuildBull, at its own discretion, may decide to use its own consultants in order to obtain a second opinion on the material produced by the proposer or to conduct the further enquiries, in the interest of investors, on the proposed project.

The possible admission of projects is reserved to the discretionary and unquestionable decision of BuildBull.

Under the Regulation (EU) 2020/1503, the maximum raised limit on the platform for each project can't exceed €5 million.

Proposers recognize to BuildBull a fixed retainer fee, paid prior to the placement of the offer, to cover due diligence costs, and a success fee, calculated as a percentage based on the project and capital raised. The success fee will be paid only upon offering's completion and only if the raising is successful.