Even though JengaFi conducts extensive due diligence on every property before listing, you should always do your own evaluation. Understanding what to look for will help you build a stronger portfolio and invest with confidence.
Here's a practical checklist for evaluating any fractional real estate investment.
1. Location & Market Fundamentals
Location remains the most important factor in real estate. Look at the city, the specific neighbourhood, and the micro-market dynamics. Are there population growth drivers? Is there infrastructure development nearby? What's the vacancy rate in the area?
JengaFi projects include the property location (city and country), property type (residential, commercial, mixed-use), and relevant market context in every listing.
2. Independent Valuation
Every property listed on JengaFi is independently valued by a licensed, third-party firm. The valuation report provides an objective assessment of the property's current market value, comparable sales data, and projected value trajectory.
Always review the valuation report. It's available in the project documents section. Pay attention to the methodology used, the comparables cited, and any caveats the valuers have noted.
3. Target IRR & Return Projections
IRR (Internal Rate of Return) is the annualised return you can expect from both rental income and capital appreciation over the investment term. JengaFi projects display a target IRR for each listing — but remember, this is a projection, not a guarantee.
Look at the assumptions behind the IRR: occupancy rate, rental growth rate, exit valuation, and expense ratio. Are they conservative or optimistic? How sensitive is the return to changes in these assumptions?
4. Developer Track Record
Who is building or managing the property? JengaFi vets every developer through our 6-stage due diligence process, including financial health checks, reference verification, and site visit confirmation.
Each project listing includes the developer's background, previous projects, and relevant experience. Look for developers with a track record of delivering on time and on budget.
5. Investment Term & Liquidity
Every project has a defined investment term — typically 18 to 36 months. During this period, your capital is deployed in the SPV and you receive quarterly distributions. At the end of the term, the property is sold or refinanced, and proceeds are distributed.
Understand that fractional real estate is not a liquid investment. While JengaFi is developing secondary market features, you should generally plan to hold for the full term.
6. Risk Disclosures
Every listing comes with explicit risk disclosures. Read them. Risks include market downturns, construction delays, currency fluctuation, tenant vacancy, and regulatory changes. Understanding the risks is as important as understanding the potential returns.
No investment is risk-free. The best investors are the ones who understand exactly what they're buying, what could go wrong, and what protections are in place. JengaFi gives you all the information — your job is to read it.