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What is secondary market and who can use it?
Secondary market is a feature through which investors can prematurely sell their investments that they are involved in, should they have the need for an early exit opportunity. Secondary market can be used by all investors who are involved in EstateGuru’s investment opportunities. From the buyer’s side – all registered and verified EstateGuru users are welcome to purchase investments from the secondary market.
What are my obligations from using secondary market – what to keep in mind?
All investors need to keep in mind that all secondary market investments are binding and same conditions apply as for all the primary market investments.
How are returns divided among the seller and the buyer of an investment?
All returns are divided between the two parties based on their actual investment duration. Meaning that the seller is entitled to all interest payments made before they sell their claim, while the buyer receives all interest payments after they purchase the claim. However, the seller can choose to sell at a more expensive rate (up to the amount of unreceived interest), although such a sale is unlikely to attract a buyer. If the buyer purchases a loan that is in debt, meaning that certain penalties, indemnities or interest payments have not been done and the claim exists, then all claims will belong to the buyer. Once the seller has sold an investment, they have no future claims to any of the proceedings.
How liquid is the secondary market?
The liquidity of the secondary market depends heavily on the interest of the platform’s fellow investors. There is no guarantee that an investment placed for sale will be sold.
Can I cancel my secondary market bid? (for seller)
Yes, as a seller you can cancel your secondary market bid at any time, assuming that the investment has not been purchased yet. Please be aware that the bid will be automatically cancelled after 14 days, if the investment has not been purchased during this time period.
How is AROI calculated in secondary market claims?
The formula of AROI calculation is: Annualized return = Expected Earnings / Remaining Period * 365 / Principal Purchased
How much are the fees for using secondary market?
There are no fees for using the secondary market for the buyer. For the seller, a 2% transaction fee will be applied.
How to use the secondary market feature?
• The seller can choose the price of the claim, hence also the return for both seller and the buyer. • The investor can only sell the entire claim, the claim cannot be halved or partially sold. • All contracts are established in a manner that all previous contracts are handed over to the buyer, including all bonus contracts if applicable.