last year finon was one of the fastest growing crowd Landing platforms reaching an outstanding portfolio of over 10 million euro last summer I had the opportunity to visit ft's headquarters in prag and learn more about its frontal properties which is the company's main focus however the PTP Landing industry is changing rapidly and investors should be informed about the upcoming changes that may impact their yield on the platform that's why I recently talked to the CEO to discuss important updates that will further enhance the user experience on ftown if you're new here and haven't heard about
how to make money with fintown watch this quick review for more details about Fenton's operations you can watch my visit to Fong which I will link down below this video will cover some of the latest events plans for this year and our community's questions when evaluating my own P2P Investments I always pay attention to how companies deal with challenges P2P platforms that prove that they can manage risks and resolve issues while protecting investors funds are in my opinion much better options than platform that only care about their own interests and create investors as Dum money
so let's hear about the challenges that finon had to face in 2024 so we fac like several issues exactly um like at the beginning especially when we were starting car we had a lot of issues like smaller one with the rooms with some leaks with all of the stuff that is normal actually when you tarting up new building so the thing we faced actually in the we have actually covered most of the issue that we had because it's quite big building there are a lot of Technologies there were a lot of issues with this technologies
that we have to repair with heating there were issues on the on last floors we had issues with electricity in some rooms so we covered like M of this issue but of course this is the thing that uh this are the things that didn't allow us actually to to rent all of the units and to to have it in full but it's normal it's nothing un normal these things that uh we uh all assumed but did not know in how many issues it can be but like normally in regardless numbers uh I suppose that carene
uh we met both like 95% of what we expected uh in J uh I suppose it's around 80% of what we expected in regards of numbers okay and all of these things so I told that it was okay work like very good very good those issues or don't impact investors on fown right no it's like operational issues that you have to deal with it's like it's normal operational issues that like especially when you are starting like new project so at the beginning it's like tremendous amount of different different thing that you have to deal with
and then of course it's a normal operational things like like people damage rooms you have to repair them and C them part people and do crazy stuff in apartments actually so but it's not like it's something that we didn't know about like it was like SMA we had something like 5 years and most of the things that we are facing now operationally it's everything that we already seen last summer we would have expected to earn between 150 and 200,000 Euro from rental income in reg Maxim shared with me that in December 2024 the project earned
above €60,000 with further potential to reach the expected Revenue this year as you can see operating a rental business comes with specific issues that must be resolved what's essential for you as an investor is whether the expectations towards the rental income are met so vdf and fintown can run a profitable business and cover their cost of capital if you're active on fintown you have likely noticed that the company is raising funds for a development project called Park Vista this project won't be rented out in the future but it will be sold to individuals in some
of the last latest projects like Park Vista you um are offering uh investments into development project which is going to be sold rather than rented out so can you perhaps elaborate on uh why this change in the business model for for this particular project yeah so actually it's not like change of uh business model we let's say testing another like very interesting segment a segment of uh like El property it's not that we are shifting this segment but we look like Fe that's very very interesting in regards like in future especially in BR because it's
quite big there is quite big demand for stand such type of projects and uh such kind of project provide like really beautiful value so we can do like really beautiful projects and our main concept is really to do beautiful project so it's like correspond correspond to what we do but on another side of course it's not the concept of frontal because one of the main issues like let's say we see the project we are searching for the project that we can do like really fast and it's not so easy like in pra in Czech Republic
I mean uh really fast in regards to do it like in two three years so to buy the project to construct it and to put it running and it's really not so easy and so it's also in regards of demand for example in them Town people are really more interested to to invest uh in shorter term project so in that average is 2 years so as we've seen or tested different different options of products there are not too many investors interested in to invest like in four five years project so from one side of course
we are doing in repairing like we have M we have a project uh we have another two projects that we're looking at exactly rental like similar to sne over similar to per so it's our main focus the park Pista project has not been put to the market yet as the prices are not available at the time of recording however Maxim shared with me that he already has three to four people interested in the units so he might be selling the condos directly to them as soon as the pricing is available outside of Park Vista finon
will also be listing new investment Concepts to test the investors appetiz to invest in more secured Investments we have another project now that it's been prepared smaller one and quite fast one with first round Mortage as we uh want to test uh how our investors are really interested in a like really secure project with first round mortgage so what percentage they're eager to invest for so it will be project related to the land so just like there is land we get construction permit to sell it unit by unit like small en P we will not
build there H so each another like let's say product that we are testing because it's not rental but it covers the question or first rank Mortage yes so so that's why we do like this other types of project just to move forward and to test some hypothesis in regards of the investors interested in such kinds of project and so on last year investors on fintown could still enjoy yields of 12 to 1% per year those returns have however decreased in the past few months and some of you might wonder whether Finton will list High Ying
loans from the Czech Republic in 20 F of course like from our side you have to balance all of the sides from one side we have investors supp course that they interested to get as much as possible on investment side from other side there is like developers part that uh is interested to to have the projects like viable economical projects with some uh profit and so we have to balance how much we are able actually to pay of course we want to pay our investment as maximum as possible but we don't have to forget why
are actually working and we have to have like as a developer some kind of profit it's one side and we also have preliminary to balance risks you know if we over fund ourself with higher interest it's also risk so for us is on First Place Bank is the most important partner because we have the smallest interest and then we have other sources that are like more expensive but we have to balance for our costom Capital to be as low as possible because otherwise if it will be high then the risk will be high so from
that point of view I cannot promise that in regards of projects in Czech Republic we will issue this like maximum interest rate that we had but I suppose we will make some smaller products or like with like you know some promos that we have this but normally it's not our like goal to hire the interest rate our main goal is to have like risks as low as possible to have projects economically viable our long-term goal is to l e interest rates in regards of this not to make them higher and actually on the market interest
rates almost like doubled like I mean like doubled it was 7 and a half% like banking rate now it's almost 3% so it's almost two and a half two and a half times interest rates are lower now than it was like year year ago and in kown we didn't l two and a half times you know so we like CL it a little bit and also it's very important that in regards of projects and project like revenues and so on it doesn't go high because construction cost are still growing of course prices of real estate
in Czech Republic actually always like if they they're growing all the time sometimes they stop but like they're growing all the time but still I wouldn't say that in projects that we're looking or calculating now there is some kind of huge like revenue or like profit for us I would say that it's going all the time a little bit far like lower because of the construction cost because unfortunately the construction post growing faster than the sale price or like valuation price of the units so prices go up in Republic but can crash it go up
faster and we cannot allow ourself also to grow too much our Capital cost if you want to earn higher returns you would need to invest in developing the seat a project being prepared in Costa Rica you can learn more about it in our latest video here apart from high yields investors are also interested in whether Fon plans to get regulated I got a few questions from the community which I would like to address investors are wondering if you plan to get regulated I know we have discussed this topic in prag a few months ago the
answer was that you are exempt from the check regulation on crowdfunding uh has there been any change so far yes so there is change it's not a change that we are out of this exent but we are working now on shifting to a bond system you know so uh because bone system is like bone pure you know we have the same type of product the same same but it will be like under bone regulation because this allow will allow us actually to work uh without any limitations that we had like before so we are we
were talking discussing it for quite a long time with warriors with everybody and we resol that it will be the best solution for us to be regulated and actually not to change something like dramatically I would say almost anything will not change in investor side but uh it will be regulated as Bond issuer so this is the ship that we are planning is this planned for 2025 yes yes we have actually started this I suppose on the first half of this year we will have already we will transfer to this system what about the secondary
Market secondary Market is very interesting question because actually it's the thing that at this time under our regulation no non regulation we are not able to to do this because we will be automatically violated some laws and we we will get into trouble with it so we cannot do secondary Market as it like normally works but uh we will be able uh to work with it when I suppose when we transfer to bonds but we U will prepare some kind of early exit product uh that will allow people because what is the main idea of
secondary Market is liquidity yes that you can exit earlier that you can sell it somewhere and take your money out and invest somewhere else or do a whatever it was go so we are thinking now of implementing this early exit program that will allow people to exit earlier so it will be something similar the secondary Market but will not be secondary market so that wraps up the updates for 2025 this year you can expect new investment products that shift towards a regulated environment as a bond issu an early exit program improvements in the it infrastructure
and higher occupancy rates as the rental properties in Carin and T become more efficient last but not least you will also see the First Investments secured by a first rank mortgage Finton is offering a group guarantee for its mezanine loans which has worked fine so far however a first rank mortgage will enhance the safety of your investment even further if you want to watch the full interview with Max and VF you can do so in or fown review on PTP Empire if you haven't joined fown yet and you want to invest yourself signing up with
or link will get you a 15year investment bonus Additionally you help us to produce regular updates on a monthly basis if you found this video available hit the like button and subscribe for future updates thanks for watching and I'll see you in the next one
