3. 3
Purple24 is a crowdfunding platform mediating for mortgage-based loans. As an investor for these funds, there are sev-
eral basic features of the product that are unique to our platform:
1. New loans
The Purple24 platform allows you to lend money on mortgage-backed loans, based on Dutch properties.
The loans have a 5‑year period, with flexibility in repayments. We have drafted a system for early as well as late
repayments.
2. 5‑year loan
After 5 years you can decide to continue lending on Purple24, or get your investment amount back.
3. Liquidity
You can sell your loans at any time on our platform, in case you want to cash out early.
4. Interest
As an investor you can choose between a fixed rate and a floating rate of interest. Please see our website
www.purple24.com for the recent interest rates.
5. Guarantees
Purple24 ensures that your investments are backed with several guarantees by the borrower. Please read Page 4 of
the brochure for a better understanding.
6. Transparency
You will get specific information regarding the collateral and the borrowers as well as clear monthly statements on
your investment.
7. Collection agency
You will receive monthly interest payments from the borrower, via Foundation Purple24 channel.
8. Fully compliant
Our product and legal documents are developed in cooperation with the law firm Houthoff Buruma and are fully com-
pliant with the Dutch law and regulations.
Please read this brochure further for more detailed information or call us for an appointment.
Executive summary
4. 4
At Purple24 lenders meet borrowers in an efficient way, ensuring transparencies and guarantees.
1. Optimum investment
• As a registered lender, you are able to view the properties with loans with all relevant details, but anonymous form.
• You can choose for a fixed rate of interest or a floating rate of interest.
2. Formalities and paperwork
• If you as well as the borrower agree upon the terms and conditions, information about the borrower will be provided to you.
• Purple24 verifies all the information provided.
• If based on the valuation (maximum 75 % of the property value), the final loan amount is agreed upon, the final loan agree-
ment will be drafted by Purple24 and signed by both parties.
3. Transfer of funds
• An appointment will be made with the notary and the mortgage will be in the name of Foundation Purple24.
• The funds must be transferred to the notary.
• After passing the mortgage deed, the notary will transfer the loan amount to the borrower.
4. Scalability
As a major investor you have many advantages at the Purple24 platform:
• Low cost involved.
• Build your own portfolio with risk-and-ROI-target.
• No uncertainties about your investments, Purple24 does all the work.
• A detailed overview of your portfolio, not a black box investment.
5. Above market rates
The Purple24 platform can offer an above market rate of interest since we have a reasonable size of borrowers willing
to pay the same.
6. Exit
There is an option to make an early exit from the investment, known as ‘early cashing out’. Purple24 will place the
loan back on the platform so other investors can decide if and on what terms they wish to invest in the same loan.
If you want to build a large portfolio on our platform, you can give instructions to Purple24, and we will build the portfolio
on our your behalf.
How it works
5. 5
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 3 %, the final rate to be paid to the lender is:
2nd quarter 2015: 0.014 % + 3 % = 3.014 %
3rd quarter 2015: 0.155 % + 3 % = 3.155 %
4th quarter 2015: 0.069 % + 3 % = 3.069 %
Interest
6. 6
A Purple24 loan is mostly a standardized loan with a period of 5 years, denominated in Euros, with a mortgage plus a
personal guarantee. This is a low-risk product, but not completely risk-free.
Some risks attached to this product are:
1. Currency risk
The Purple24 loans are Euro denominated. In case your reference is not in Euros, there will be a currency exchange
rate risk involved.
2. Late payment risk
The borrower can fail to pay the interest or the monthly repayments on time. In ROI this will be made up in the form
of extra yields through fines that the borrower must pay. But as a lender, you will have a temporary shortfall in your
liquidity.
3. Liquidity risk
If at any moment you need to sell your loan, you can offer the loan for sale on the Purple24 platform. But if there is
no other party interested to buy your loan or only interested to buy at a very low price, you will not be able to liquidate
funds at that time.
4. Variable loan period risk
In principle, the loan has a period of 5 years. But the repayment can be done earlier or later.
• If the property is sold, the loan is fully repaid early.
• The borrower can repay 10% annually without a fine or more than 10% with a fine.
• The borrower can refinance free of charge between 4.5 and 5 years of the term period of the loan.
• If the borrower cannot refinance within 5 years he can extend the loan up to 6 or 7 years, with an extra annual inter-
est of 1% or 2% respectively. This extra interest is fully for the benefit of the lender.
• If the borrower cannot repay within 7 years, the foreclosure procedure will start, resulting in further delay of repay-
ment.
5. Default risk
The borrower can default on the interest, on the loan and/or on the fines for late payment. If the regular collection
procedure fails, the lender can instruct Purple24 to call in the guarantees. The lender takes over the revenue of the
collateral. This collateral is the mortgage with a maximum loan to value of 75% plus the several liability of the owner.
In case this will not yield sufficient funds to cover the entire loan (including interests, fines and costs) the lender will
face a partial default.
Risk
7. 7
Guarantees
1. Our loans are based on income generating properties and this income is usually a multiple of the interest payment.
2. The loan amount is maximum 75% of the collateral value to safeguard the fluctuations in the property prices.
3. The borrowers (owners of the property) have several (personal) liabilities. Most of them have significant equity,
making them trustworthy.
Additionally, Foundation Purple24 is the guardian of the guarantees and handles all payment related matters. All guar-
antees/securities are established by notarial registration on the name of Foundation Purple24.
The guarantee stays with Foundation Purple24 as long as there are loans pertaining to the mortgage on the Purple24
platform. At any time, the loans can switch hands partially or completely and this can be done without notary registra-
tion. This will result in substantial savings in costs and time.
Guarantees
8. 8
1. Privacy
Privacy of our clients is important to us. The identity of the borrower is revealed to the lenders for obvious reasons.
The identity of the lenders remains undisclosed unless they decide to disclose themselves.
2. Investment amount
Due to restrictions in the Dutch law, the minimum investment amount is € 100,000 per loan.
3. 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.
4. Base rate interest
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.
6. Cost lenders
If a loan or part of a loan is sold from one lender to another lender, the costs for the old lender are € 50 plus 0.1 % of the
value of the loan part sold.
This is the only cost for the lenders on the platform.
7. Claim grounds
• As a lender you can claim the guarantees if the borrower is more than 3 months late with the interest, repayments or
other payments.
• Other claim grounds could be due to incorrect information provided by the borrower, insolvency of the borrower and
seizure of the property.
• If a claim ground arises, the lender can instruct Purple24 to call in the guarantees, including the right to bring the
property through a notary to an auction for sale, to pay for the loan, interest and other costs.
• Purple24 will inform the borrowers if it becomes aware of a claim ground.
• If multiple lenders own a loan, instructions can be given to Purple24 by a qualified majority of the lenders.
Other features
9. 9
8. Interest on late payments
In case of late payment, 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.
The fines for late payment are distributed evenly between lenders and Purple24.
9. Multiple mortgages per loan
A loan can be based on the security of 1 property. It can also be based on the security of a portfolio with multiple
mortgages.
10. Duties of the borrowers
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.
11. Priority in claims
In case of a default, the claims of the lenders have a higher ranking then the claims of Purple24 LLP and Foundation
Purple24. (Lenders get paid first, purple24 later.)
12. Validity
The administration of Purple24 is valid as evidence, except for evidence of the contrary.
13. 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.
14. 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
10. 10
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
