Africa Land Developers is a private, online real estate investment group founded on the principle of creating partnerships to invest in exceptional international real estate opportunities. Much like any crowdfunding platform, Africa Land Developers allows a group of individuals to join together to invest in a common real estate project. With Africa Land Developers, investors are able to: Learn about and browse international real estate investment opportunities online. Securely invest in the real estate opportunities that interest them. Manage their investments online through a secure dashboard. Partner with full-time real estate investors. To take advantage of these benefits and access our online portal you have to sign up (it’s free!).

Much like any investment, real estate investing involves certain known and unknown risks, and there is no guarantee of performance. Africa Land Developers specifically targets real estate investments in West Africa. Some African countries experience political and economic instability while others have shown stability for decades. Ghana has been an independent country for more than 65 years and has shown significant political and economic stability, which is why many of our investments originate in this country. Investments in Ghana are subject to normal economic volatility, specifically with respect to currency value and other geopolitical circumstances inherent to the African region. Africa Land Developers takes precautions to mitigate currency risks by denominating all deals in US dollars. We also limit our deals to short- and mid-term duration (6 months to 3 years) to mitigate the impact of unforeseeable future geopolitical or economic events.

Africa Land Developers has extensive connections to West African countries that allow us to source and offer deals unavailable to most real estate investors. Because financial markets are less mature in some countries and financial capital is less readily available from financial institutions on good terms, Africa Land Developers is able to negotiate deals that mutually benefit both real estate developers and investors. As a result, we are able to target returns of 20% or higher, which tends to be higher than the returns most investors can anticipate in other regions like the United States.

Africa Land Developer makes money from the real estate we own with our investors. This includes profits from the interest on loans and the sale of properties. We also charge management fees to cover our costs and carried interest fees to generate profits. See the question on fees under "Deal Structure" for more information.

We work with local developers who are debt-free and have high standards of quality that can be displayed by at least five projects completed in the last two years. All developers are vetted before we review any proposed projects. We vet a developer by visiting current and post projects, discussing work with past clients, reviewing the performance of their past deals, and reviewing their financial stability.

All projects undergo a rigorous three-part due diligence process. First, we review the developer by visiting recently completed projects, speaking with past clients, and reviewing their financial health. Second, we review the proposed project through financial analysis, comparison analysis, and market feasibility. Third, if the work is being performed for a client, we review the financial health of the client, the construction agreement, and the payment terms.

We work on any type of real estate development in West Africa that is in a prime location, meets our return requirements, is run by a qualified developer, is below our risk thresholds, and its performance can be confidently verified with market comparables and pro-forma models. There are usually two primary types of deals: Contracted deals, where the developer has been awarded a contract from a third-party to complete a construction or development project for a fixed amount of money. Speculative deals, where the developer has a plan to develop land they own or posses through partnership and then sold.

Where possible, funds are dispersed directly to suppliers and sub-contractors to pay for material and labor for the project but some funds are almost always sent directly to the developer. In these cases, Africa Land Developers is added to the bank account for the project and we monitor the account throughout the project to ensure proper use of funds.

Whether a deal is structure as debt or equity depends on the details of the deal and developer preference. For example, debt is usually best for contracted projects that have a fixed price. Speculative projects are usually best for equity.In every deal, we strive to find the best structure for the developer and investors.

We seek to provide reasonable rates to developers while also compensating investors for risk. Rates and equity split take a number of factors into consideration including inflation rates, experience of the developer, credit history, collateral, comparable costs of borrowing, economic and political stability, location of the project, and the type of project. We want our developers and their projects to succeed which is why we always perform financial viability analysis for each project.

All current investment opportunity is for short-term projects, usually under 18 months, that are built for clients who pay upon completion or built and then immediately sold. In time, we will offer long-term investment options for both long and short-term rentals.

Each deal will have unique fees. All estimated returns are shown net of fees. These are the fees we charge: Origination fee: Charged to the developer and taken out of the funding proceeds before being delivered to the developer. Typically 0-5%. Used to cover legal and due diligence expenses. For example, if a project raises $100,000 and the origination fee is 3%, Africa Land Developers would take $3,000 and the developer would receive $97,000. Management fee: Charged to the investor for the various expenses incurred for managing a deal through to completion. Typically 2-4%. For example, if an investor invests $10,000 in a deal, Africa Land Developers would take $250 (2.5%) to help cover the costs associated with managing the deal. Carried interest: Represents the percentage of profits that will be paid to Africa Land Developers after capital is returned to investors. 20% is standard for most deals. For example if a project raises $100,000 and then after 12 months the project is completed and returns $190,000 of profits to the investors, then the carried interest for Africa Land Developers would be ($190,000 - $100,000) * 20% = $18,000. As a result, the $100,000 of original capital plus the $72,000 in profits will be distributed to the investors and $18,000 to ALD.

The minimum investment is typically around $10,000.

Africa Land Developers defines a targeted hold period for each investment. This indicates the amount of time you should anticipate it will take to receive your principal investment back. The hold period is not guaranteed due to a number of different factors including an ever changing economy and unpredictable fashion in which opportunities may present themselves. Africa Land Developers optimizes each investment based on circumstance. All investment received and returned is denominated in US dollars. In many cases, labor and material will need to be paid for using local currencies, which are converted from US dollars by the developer at current exchange rates. When a project is completed, payment is either received in US dollars or the US dollar equivalent of the local currency which is immediately converted to US dollars and then returned to investors. Most projects are completed within 6 months to 3 years.

Africa Land Developers is a US entity. You will invest in a special LLC created under Africa Land Developers for the specific project you are investing in. Africa Land Developers will handle disbursing the funds to the developer and returning funds to the US entity, along with the legal implications of moving the funds. At the end of the year, you will receive a K-1 which you'll be responsible for reporting on your own returns.

Africa Land Developers works with both accredited and qualified non-accredited investors.

Yes, you can invest using an IRA, but you must have a self-directed IRA account with a custodian that allows alternative investments such as real estate. Most mainstream brokerages like Vanguard or Fidelity don't offer self-directed IRAs. There are several companies that offer self-directed IRA services, so you'll need to do some research to find one that suits your needs. Each has different fee structures and schedules. Here are a few custodians you may wish to investigate: - Equity Trust: https://www.trustetc.com/self-directed-ira/ - Madison Trust: https://www.madisontrust.com/selfdirected-ira-account/ - IRA Financial: https://www.irafinancialgroup.com/self-directed-ira/ - Alto IRA: https://www.altoira.com/alto-ira/ - Entrust Group: https://www.theentrustgroup.com/self-directed-iras Once you have opened your self-directed IRA account, you can transfer funds from your existing IRA or other retirement account into the new account. Make sure to follow the transfer process carefully to avoid any tax penalties. Note that it is legal to have an IRA with more than one custodian. The IRS does not limit the number of custodians you can have for your IRA, but it is important to keep track of them to ensure that you do not exceed the annual contribution limits and that you meet the required minimum distribution (RMD) rules. Having multiple custodians for your IRA can result in additional fees, paperwork, and administrative work on your part. If you decide to have multiple IRA accounts, it is important to keep accurate records and inform each custodian of any contributions or distributions made from other IRA accounts in order to avoid exceeding the annual contribution limits and to properly calculate your RMDs. Your self-directed IRA custodian will hold your investment on your behalf, and all income and gains generated by the investment will be deposited directly into your IRA account. Investing through a self-directed IRA involves additional administrative and reporting requirements, so make sure to stay informed on the rules and regulations related to self-directed IRAs to ensure compliance with IRS requirements.

While each real estate investment opportunity may be different, Africa Land Developers typically aims to deliver our partners at least 20% per year. Each investment opportunity will include financial projections prepared by Africa Land Developers, which are based upon our expertise and educated assumptions. While we like to provide conservative projections, it is required that each investor understands that past performance does not indicate nor guarantee future results.

All of the details for each property are available online. Please reach out to make arrangements for onsite visits.

Each offering will have an “Investment Agreement.” This document will be signed online.

As our partner, you will receive regular communication from us. You can review financial statements and performance updates at least once per quarter, all online through your investor dashboard.