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FAQs

General

Fractional ownership of real estate allows you to co-own a property with several other investors. It refers to the legal sharing of property among multiple owners. Each owner has a share of the asset, proportional to their investment, and shares in the benefits and responsibilities that come with it.The investors earn monthly rentals and benefit from appreciation in the value of the asset.

  • Strong Rental Yields: Compared to residential properties, commercial properties can offer yields of 8-9% or even higher. This translates to a more substantial and reliable income stream.
  • Capital Appreciation: India’s economic growth and rising demand for commercial space from businesses leads to property value appreciation over time. This translates to potential profit when you eventually sell.
  • Diversification: Commercial real estate provides a way to diversify your investment portfolio beyond stocks and bonds. This can help mitigate overall portfolio risk.

Fractional ownership allows investors to invest in high-end commercial properties at a low ticket size. In the traditional real estate model, only those with high capital were able to invest in such properties. Fractional ownership has made investing in commercial properties more affordable and accessible.

Yes, as a fractional owner of the asset you will receive a proportionate ownership in the company/ SPV firm in which the asset is registered at. This ownership can be sold/liquidated with other investors and buyers.

Investment

Any Indian citizen, Hindu Undivided Family (HUF), Companies, and NRIs can invest with Elevate.

NRI investors can invest through an NRO or NRE Account or from a normal bank account in India. Your returns and sale proceeds, however, will be credited to your NRO account.

The investment size is Rs. 1 Crore, broken into ticket sizes of Rs. 50 Lakh each. Please note that this is subject to change and can vary, depending on the opportunity.

We believe in 100% transparency. All property documents, rental agreements, tenancy details, title report, due diligence report, etc. will be available to the Investor at any time.

No, Ellevate does not guarantee any returns. While rental yields on most opportunities are known in advance, the risk that the yield and expected gains will not be realised, remains. Our presentations, material, and discussions only indicate 

projected returns. We advise potential investors to be wary of any scheme which provides guaranteed returns.

Your investments are yours and are absolutely secure regardless of what happens to Elevate. Here’s how- Your investment is in the form of Ownership Percentage in a Limited Liability Company, incorporated for the sole purpose of acquiring and owning the asset. By virtue of having a share or ownership in the SPV, you in turn own the asset. The SPV is bound to comply with statutory requirements such as holding meetings, filing returns, etc., that are undertaken by Ellevate Advantage. Due to this structure, the ultimate decision-making power lies with the investors alone. Thus even if Ellevate is not functional, your ownership and control of the asset remain secure.

An SPV- Special Purpose Vehicle is a subsidiary company created to ensure complete financial security from any external factors. An SPV ensures that our investors cumulatively have complete financial control on the asset they want to invest in, without any risk of external financial influence from anybody, including the asset manager. Ellevate Advantage will manage all the operations and legal compliance for the asset, but ownership as well as all financial decisions will remain with the investors.

 This is a investment product intended to create wealth and currently, loans are not available on investment products.

Documentation

The first thing you will need is to provide documents and get your KYC verification through Ellevate. The documents you will require are –

  • Resident Indian Individual

Following documents are required for this type

  • Permanent Address Proof 

  • Aadhar Card

  • ID Proof

  • PAN Card

  • Bank Proof

  • Bank statement/Cancelled Cheque

 

  • Non-Resident Indian Individual

Following documents are required for this type

  • Permanent Address Proof  

  • Passport

  • ID Proof

  • PAN Card

  • Bank Proof

  • NRO Bank statement/Cancelled Cheque

 

  • HUF

Following documents are required for this type

  • Permanent Address Proof

  • Karta Aadhar Card

  • ID Proof

  • HUF PAN Card, Karta PAN Card

  • Bank Proof

  • HUF Bank statement/Cancelled Cheque

 

  • Partnership Firm

Following documents are required for this type

  • Permanent Address Proof

  • Latest Partnership Deed and GST Certificate

  • ID Proof

  • Partnership Firm PAN card

  • Bank Proof

  • Partnership’s firm Bank statement/Cancelled Cheque

  • Additional :  2 Partners- Aadhar and PAN card

  • Note – Majority Partners KYC required as per % mentioned in Partnership Deed

 

  • Private Limited Company/LLP

Following documents are required for this type

  • Permanent Address Proof

  • Certificate of Incorporation, GST certificate, Latest List of Directors/Designated Partners (Signed and stamp)

  • ID Proof

  • Company/LLP PAN card

  • Bank Proof : Company’s/LLP’s Bank statement/Cancelled Cheque

 

  • Additional :  2 Directors/Designated Partners- Aadhar and PAN card

In the unlikely event that a property on our platform doesn’t complete its funding target, any funds that have been committed by investors will be reimbursed to the verified bank account.

Yes, there is an initial 3-year lock-in from the time the property is registered. You are free to sell your holdings thereafter. However, if you have an investment horizon of fewer than 5 years, it is recommended to not invest with Elevate or in real estate in general.

Yes, there is an initial 3-year lock-in from the time the property is registered. You are free to sell your holdings thereafter. However, if you have an investment horizon of fewer than 5 years, it is recommended to not invest with Elevate or in real estate in general.

No, there will be no management fee charged to investors for as long as the property is not tenanted.

Post-Investment​

Your investment process will be complete when the property gets fully funded by other co-investors. Elevate has a time frame of 90-120 days in which we ensure that the property receives complete funding.

The return on your investment is in the form of rentals and is paid monthly.

The Profits that you receive as a LLP partner is a function of the rents generated and interest earned on the security deposit. 

The return is transferred to your bank account on or before the 20th working day/ 10 working days from the rental received date of every month subject to the receipt of rents from the tenant.

Elevate will take care of all aspects related to the asset.

The Returns generated on the Investments reflect the performance of the underlying  commercial asset. 

Reports will be published periodically pertaining to the income and outflows from the asset.

No,Elevate not offer any guarantee on returns. Instead, we advise our potential investors to be cautious of any scheme which claims guaranteed returns.

Investors can exit the asset anytime by selling it directly to another investor. or by listing it on the platform. In the latter case, you would only be able to sell when there is a willing buyer. Like in any other partnership, the existing partners get the Right of First Refusal.

You can exit your investment once the initial 3-5 year lock-in period is complete. This can be done in the below different ways

Private Sale: You can sell your fraction/holding to anyone you may know, such as friends or family. You will be required to execute the necessary transfer documents for the same. Ellevate will provide you with the valuation of your holding should you require assistance in setting a price.

Asset Sale: There is no fixed tenure for selling the asset. So we wait for the right opportunity to exit the asset according to the market cycle, interest rates, and demand-supply dynamics to maximize capital appreciation. 

Resale Market: Using Elevate’s network, you can list your fraction/holding with us , at a recommended price. You will be required to execute the necessary transfer documents for the same. Once a new investor has acquired your fraction investment , you will be credited your gains (post any taxes and fees) on your registered bank account.

By tenure, we mean the tenure of the underlying lease agreement.  If the co-investors of the property, do not wish to sell the property, Elevate will renew the rental agreement either with existing tenant or a prospective tenant. 

Our team looks after all aspects of tenancy, asset management, timely transactions & notifications.

Yes. The Investor can appoint a nominee for the Investment. Investor to note that a nominee can be any person except a minor.

Taxation & Finance

For Indian residents, you will be paying taxes on rental payouts and on capital appreciation.

Rents: Rents received from the property are distributed

Under Indian income-tax law, an NRI is required to pay tax on any income earned or sourced in India. If the income in India exceeds the basic exemption limit, the NRI will have to pay taxes in India as per the applicable slab rates.

 
Rent Income: It will be distributed as interest on debentures. It will be taxed at the applicable tax rate or the rates of the tax treaty, whichever is beneficial to the investor.

 
Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the asset was held (short-term vs long-term). Short Term Capital Gain will be applicable if the Shares & Debentures are sold before 24 months and 36 months respectively. It will be taxable as short-term capital gains at applicable tax rates for the respective NRI(s). Long-term capital Gain will be applicable if the Shares & Debentures are held for more than 24 months and 36 months respectively. It will be taxed at 10%, irrespective of the quantum of gains. NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to the availability of a Tax residency Certificate.

Yes. The SPV deducts a 10% TDS before remitting returns to Resident Indians and 20.8% for NRI Investors. Resident Indians can submit Form 15G/15H and NRI’s* can submit TRC for reduced TDS. NRIs can explore benefits under the Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to the availability of a Tax Residency Certificate (“TRC”).

The transfer of foreign currency by NRIs is regulated by extant RBI and FEMA guidelines.

From which account the payment is to be done by the NRI and where will the rental proceeds go?
NRI investors can only invest through an NRO Account or from a normal savings bank account in India. Distributions will go to the account given by the investor.


I am an NRI. What taxes will I need to pay?
Under Indian income-tax law, a Non-resident Individual (NRI) is required to pay tax on any Indian sourced or received income in NRO account that exceeds the basic exemption limit, as per applicable slab rates. NRIs can benefit from Double Taxation Avoidance Agreement (DTAA) entered with their respective country, subject to availability of Tax Residency Certificate (TRC). Please consult your financial advisor for more details as income tax provisions and tax treaties are subject to change from time to time.


I do not have any taxable income in India. Why do I still need to pay tax?
Even if an NRI’s income in India does not exceed the basic exemption limit, taxes may be withheld as per income tax provisions. Such an NRI can claim refund of taxes withheld by filing a tax return in India.

Is the TDS deposited against my name?
Yes, the TDS on your distributions is paid and deposited against your PAN and can be claimed back at the end of the year.


Does tenant pay GST?
Yes.

Legal

For each asset selected by Elevate, a Special Purpose Vehicle (SPV) is created in which funds are raised to purchase, own and manage the property. Your investment shall be towards percentage share and ownership of the SPV that holds the property and represents your fractional investment. Elevate will provide asset management services to the SPV and undertake accounting, secretarial, reporting, leasing, maintenance, and other operational aspects under the asset management services contract with the SPV.

Every asset we acquire for our investors is listed as an SPV (special purpose vehicle)- either as a Limited Liability Partnership/Private limited company. Legally speaking, each investor will own % share of ownership in that SPV in proportion to their investment in the asset, post allocation factor.

Elevate undertakes the legal due diligence of the property before it is purchased by the SPV. All investment and property-related legal processes are handled by Elevate. However, you are welcome to seek tax and legal advice from your advisors to understand if the opportunity listed is suited for you. Should you engage any legal/tax advisor, we will be happy to answer any questions that they may have.

To begin with, you will be required to sign an Expression of Interest to confirm your commitment and remit 10% of your investment amount.


Following this, a Drawdown Notice will be sent to you. This is followed by the Offer Letter for proportionate share of partnership /ownership with the SPV. The SPV also executes the Asset Management Agreement with Elevate for which you will be executing a consent letter.

 
At the time of resale/liquidation of your holding in the SPV, you will be required to execute documentation which includes a request letter for the transfer of ownership stake, followed subsequently by necessary legal/regulatory documents.

Elevate has an experienced team that performs thorough technical and legal due diligence before shortlisting any property. We engage reputed Tier-I law firms to conduct due diligence on the property title.

Yes. you can have access to all the asset-related documents including the Lease/Rental/Tenancy Agreement/ Deed or Leave & Licence Agreement.