Business Model 

 
Peer Estate model offers real estate crowdfunding in Pakistan, allowing investors to
pool-in their portions of investments to fund commercial and residential real estates.
This will aid in cutting down intermediaries in real estate transactions. 
Our website will have real-time property data, informing investors what properties are
available, what portions they can invest in, and what would be the contract length. All
the transactions will be recorded on the website. 

The attractions for consumers in this business involves our real-time property
operating website. Investors will have complete information about where to invest,
what options they could have and what investments can earn them major profits  in
the future. Plans for all the properties will be shared on the website on a regular
basis, informing investors about the plans of the developers. It will also be a
communication platform between the fundraisers and the developers, reducing
information asymmetry and involving the customers in multiple transactional
practices. 

 Fintech will bring benefits to the real estate in the form of:
1. Faster payment cycles
2. Fraud resilient transactions 
3. Improved customer experience 

Peer estate aims to help those investors who want to invest in real estate but do not
have enough financial strength to do so. Using our platform, investments could be
made a tireless, simple process allowing investors belonging to middle-class families
to earn through real estate investments. In Pakistan, people are aware of the
benefits and safety of these investments, but do not have enough capital to buy plots
in their own name. Hence, Peer estate will be solving this problem by still requiring
investment capital but without the hassles of owning, managing and financing
properties. 
The properties listed on our website will be tailored repeatedly to ensure that only
best investment opportunities are present. Currently there is little to no work
regarding this in Pakistan, hence  investors will be more inclined towards Peer
Estate. 
Moreover, as Peer Estate steps in, it provides a readily available alternative to bank
lending. Customers now can save and invest on their own rather than taking a large
amount of loan from the bank in order to buy a complete property.
Consumers will not be required to be accredited investors, and the minimum amount
allowed for investment would be five lacs. Peer estate will earn by charging the
investors a sales commission of 3.5%, annual servicing fee of 0.85% and annual
management fee of 12.5% on their respective investments. By doing so we will
obtain our payment upfront by the customers for our year-long operations.
Residential and Commercial Plots will be divided according to investments, and each
contract will last for 3-4 years with the developers. During this time, multiple
constructions will take place on those locations and investors will be given their
share by the end of the contract. According to each location and the developing
processes that take place there, a certain amount will be set and if the prices of
those locations increase beyond those set prices then we will charge a 10% fee on
the final price when the contract comes to an end, and later divide it among the
shareholders. 
For example, when a contract is signed for a commercial plot in DHA Phase 8 worth
PKR 40 million, 80 investors will pool in their funds with 0.5 million each. The
contract is to continue for 3 years after which there will be a vote and investors will
be given a chance to reshuffle their funds. Another exit strategy offered will be to call
in for a vote by the majority stakeholders and exit the contract. So from this property
we will be charging PKR 0.4 million per year from the 80 investors which means PKR
5000 per year from an investor who invested PKR 0.5 million in the property.