Purple24 is a crowdfunding platform that allows individuals to obtain loans secured by Dutch property. Borrowers can receive up to 75% of the appraised value of a property. Loans are offered for 5 years but borrowers have flexibility to refinance within 30 months. Interest rates can be fixed or floating. The platform provides anonymity during the quotation process but borrower identity is revealed upon securing a loan. Guarantees include the borrower's income, loan-to-value ratio, and personal liability.

1. The crowdfunding platform for
professionals
Mortgage Loans

2. 2
Executive Summary 3
The borrowing counter 4
How it works 5
Conditions and costs 6
Interest 7
Refinancing and redemption 8
Guarantees 9
Other features 10
INDEX

3. 3
1. Loan conditions:
• Based on Dutch property.
• Maximum Loan to Value of 75 %.
• Loan must be business in nature. Property can be either private or business.
• Income as an assurance to pay interest.
2. Platform
You can offer your loan request on our platform with a detailed project description. Lenders will offer an interest rate
you are free to accept or decline.
3. 5-year loans
Loans are in principle 5 years, but with a 30-month flexibility, so you have sufficient time to refinance after 5 years.
4. Costs
Getting a quotation for an interest rate for your project is free of cost. After accepting a loan, several costs applies.
5. Interest
You can choose between fixed or floating interest rates. Interest is paid on a monthly base.
6. Redemption
You can repay maximum 10% per year of the loan, if and when this suits you. Additional repayments are possible with
extra costs. It is possible to borrow again the earlier repaid amount.
7. Privacy
At the quotation stage, potential lenders will only see your project in an anonymous form. When the loan is granted,
your identity is revealed to the lender. The lender is not allowed to use your personal details for purposes other than
those related to the loan.
8. Service
Purple24 will help you free of cost with the quotation. Feel free to make an appointment to explore the possibilities of a
loan.
Executive summary

4. 4
An innovative platform
Over the last few years, the rules for lending on properties have changed, and the importance of the risk factor for the
financial institutions has been declining. If a potential lender does not fit in the given checklist, the loan application is
rejected irrespective of the personal guarantee offered by the borrower.
To bring about a change in this system, Purple24 is a platform where low-risk borrowers are able to get a loan if they
fulfill basic requirements.
On the platform, loans are issued up to 75 % of the value of the property. Since borrowing is done directly from the
lender, there is a minimum margin between the interest paid to and the interest received by the lender.
Why Purple24
1. As a borrower you can make your property liquid and use to multiply your business further.
2. In case you have existing property that is frozen in your company assets, you can get a loan against it and use
that money to expand your work.
3. If your property has a good rental income, getting a loan can help diversify your portfolio and boost your return on
equity.
4. Creating a pension through a Purple24 loan is also an option.
The borrowing counter

5. 5
Procedure to get a loan through Purple24
1. To get a loan on the Purple24 platform, you can provide us the information of your property. For this we have an
application form you can fill in, or you we can help you to fill in the form.
2. For the initial market value of your property, you can use your own estimate.
3. For the interest, you decide if you prefer a fixed interest rate or a floating interest rate, as a mark-up of the Pur-
ple24 Base Interest rate.
4. Purple24 will make your request anonymous, removing the personal information, but leaving all relevant informa-
tion concerning the loan and the property in the application.
5. This information will be published behind the login for our lenders and the lenders will be informed by email about
your process.
6. Purple24 will inform you what interest is offered and possibly what additional conditions apply. Until this step,
everything is free of costs.
7. If you agree on the interest and conditions, we will provide all your information to the lender, and the actual loan
process starts. Purple24 will verify all the information you have provided in the application form.
8. An official valuator will value the property.
9. This valuation will be the base for the maximum of the loan, which is usually 75% of the estimated free market
value.
10. If you agree on the valuation and resulted maximum loan, the final loan agreement will be drafted by Purple24 and
signed by both parties.
11. An appointment will be made with the notary, to put the mortgage on the name of Foundation Purple24.
12. The lender will transfer the loan amount before the appointment to the notary. After passing the mortgage-deed,
the notary will transfer the loan-amount to you.
How it works

6. 6
Eligibility for a loan
1. The loans are issued on the basis of the mortgage on a Dutch property.
2. A maximum of 75% of loan to value of the property for a loan.
3. Loans are issued only for business purpose.
4. An income of the borrower that is substantially higher than the interest payments per month must be available.
5. The borrower is personally liable for the loan in addition to the guarantees.
6. Purple24 makes the final decision to sanction a loan-application.
Costs
1. Advice from a financial expert: Taking a loan is an important decision. It is strongly advised to seek advice from a
qualified mortgage/financial expert. But it is not compulsary. This is at your own cost.
2. Taking a loan: Once the agreement is signed, the following costs are applicable,
• Cost for a certified evaluator for the property,
• Notary cost for the mortgage deed,
• 1% of the total loan amount as closing costs
3. Monthly interest payment plus 0.05% commission on the loan amount, to be paid on the 4th of each month for the
interest of the month before.
4. In case of late payment, the borrower must pay the following fines:
* 14% of all interest payments that are 5 days late.
* 1% interest on the fifth of each month on whatever amount is due.
Conditions and costs

7. 7
Floating or fixed interest
Loans on the Purple24 platform are in principle for a period of 5 years. You can choose between a fixed interest and a
floating interest rate.
A Purple24 floating interest rate is the market rate of Dutch government bonds, which is the base-rate and increased
with a fixed mark-up, as agreed in the loan-contract.
Base-interest rate
The historic base-rate for Purple24 loans so far:
2nd quarter 2015: 0.014 %
3rd quarter 2015: 0.155 %
4th quarter 2015: 0.069 %
Calculation of the base- interest rate
The average effective interest rate of 5‑year Dutch government bonds during the first five trading days of the month
before a quarter starts, will be the base-rate for the floating rate of the next quarter. The source for this information is
the website www.iex.nl.
For example:
The effective interest rate of 5‑year Dutch government bonds during the first 5 trading days of September 2015 was:
1st September: 0.113 %
2nd September: 0.114 %
3rd September: 0.059 %
4th September: 0.035 %
7th September: 0.022 %
The average interest rate during those 5 days was 0.069 %. So this is the base-rate for floating interest rate loans of
Purple24 during the 4th quarter of 2015.
Calculation of final interest
In case the mark-up of the floating interest is 4.5%, the final rate to be paid to the lender is:
2nd quarter 2015: 0.014% + 4.5% = 4.514%
3rd quarter 2015: 0.155% + 4.5% = 4.655%
4th quarter 2015: 0.069% + 4.5% = 4.569%
Interest

8. 8
Safe refinancing
Purple24 loans are market based for a loan period of 5 years with a 30‑month flexibility.
• Between 4.5 and 5 years, you can refinance without any additional interest charges or penalties.
• In case you do not succeed in refinancing within 6 months (starting at 4.5 years), you can extend your loans up to 6
years, or even 7 years, with a small additional interest fee.
• You are free to refinance anywhere else without any fines.
• If you cannot refinance within the 30‑month window, you are in default and Purple24 must take action to call in your
guarantees.
Purple24 gives such various options for period for refinancing, because refinancing is very important.
Redemption
Purple24 offers flexibility for redemption of loans
1. If the property is sold before the maturity date, the loan amount must be redeemed.
2. An optional 10 % redemption per calendar year without any fine (this can be done at any time that is suitable for
you as a borrower).
3. Over 10 % redemption per year is also available with a fine of 1 % in case of a floating interest rate and 5 % in case
of a fixed interest rate.
4. Between 4.5 years and 5 years, redemption is available without any fine.
5. If you want to borrow the amount redeemed earlier, it is possible on the platform as long as there is a lender for the
same.
Refinancing
and redemption

9. 9
Guarantees
Purple24 requires a threefold guarantee against loans from the borrower:
1. The borrower must have an income that is a multiple of the monthly interest due for the loan amount,
2. The loan amount is a maximum of 75 % of the collateral value to safeguard the fluctuations in the property prices,
3. As a borrower you must provide several (personal) liabilities. In case the beneficial owner chooses no to be liable,
the potential lenders shall be informed of the same.
Foundation Purple24 is the guardian of the guarantees and takes care of the payment related matters. All the guaran-
tees / securities are established by a notary registration in the name of Foundation Purple24.
The guarantees stay with Foundation Purple24 as long as there are loans related to the mortgage on the platform.
The loans can switch hands (fully or partially) and can be done without notary registration.
Guarantees

10. 10
1. Investment amount
Due to restrictions in the Dutch law, the minimum loan amount is € 100,000 per loan. It is possible to place multiple
properties under 1 loan.
2. Interest payment
Interest payments are due on the fourth of each month by the borrowers to Foundation Purple24. The Foundation will
transfer the proceeds to the rightful parties.
3. Late payment
In case of late payment against the monthly interest, the borrower must pay the following extra fines:
• 14% of all interest payments that are 5 days late.
• 1% interest on the fifth of each month on whatever amount is due.
4. Base interest rate
Every quarter Purple24 determines a new base rate for the floating interest rate. This base rate is published with moti-
vation on the Purple24 website. This base rate is binding for all parties.
5. Dutch law
All the loans on the platform are subject to the Dutch law. In case of conflict, the dispute can be presented in the court
of The Hague.
Other features

11. 11
6. Claim grounds
The lender can claim your guarantees if you are more than 3 months late with the interest, repayments or other pay-
ments. Other claim grounds could be due to incorrect information provided by the borrower, insolvency of the borrower
and seizure of the property.
7. Duties as a borrower
The borrower has certain duties to fulfill towards the lender, and must inform the lender if any of the following situa-
tions arise:
• If there is more than a 90‑day delay in the rental income of the property.
• If there is a vacancy in the rental property for more than 90‑days,
• There is an offering for the sale of the property.
• Any change in the legal status of the borrower.
• In case there is information from the municipalities or other government agencies that can have a negative influence
on the property.
8. Validity
The administration of Purple24 is evidence for all parties, except for evidence of the contrary.
9. Role of Purple24
Purple24 is a neutral platform. For this reason, Purple24 can never take a decision for the lender or the borrower.
Purple24 can follow instructions of lender or borrower, and in this way act on behalf of them, if asked to do so.
10. Dutch mortgage
We use the word ‘mortgage’ for our security right on the properties. Technically, we should name this hypothec, be-
cause there is a difference between the Dutch security rights and common law security rights.
In the common law system, a mortgage gives ownership of the collateral. In case of a default, the holder of the mort-
gage actually gets the property. In the Dutch security system, the hypothec / mortgage, can only be established by a
notary and is recorded in the Dutch central land register. The mortgage gives the right to sell the collateral on a public
auction by a notary, in case of a default. The proceeds of this auction will go on first priority to the lender (s), after
deducting auction related costs.
Other features

12. 12
Attention!
No AFM supervision.
No license required. No prospectus required.
Email : info@purple24.com
Purple24 LLP and Purple24 Foundation
Spaarneplein 2
2515VK Den Haag
The Netherlands
Tel: 31-70-2060241