Frequently asked questions

Everything you need to know about the product and how it works.

What are Compound Real Estate Bonds?
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Compound Real Estate Bonds is a financial technology company, not a bank account. We are focused on making financial products more inclusive and accessible. We are a next generation customer centric company. We are striving to unlock financial freedom for all by building a simple, secure financial ecosystem that makes it possible for the consumer to compound their investments by taking advantage of investment assets that have historically been reserved for Wall Street, not Main Street.

Is Compound Real Estate Bonds a bank?

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No, we are not a bank. We are the next generation financial technology company committed to creating financial technology solutions for a secure, accessible ecosystem where your money can grow.

How many bonds can I buy?

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For accredited investors, you can purchase as many bonds as you'd like, and for non accredited investors you can purchase bonds up to 10% of your annual income or net worth.

When can I withdraw my money from Compound Bonds?

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Compound Bonds are liquid, meaning you can withdraw your funds at any time. No commitments, No locks-in.

Who can buy Compound Bonds?

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You must be over 18 to buy compound bonds. Simply create an account and purchase in minutes.

How do Compound Bonds work?

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We will invest and loan money from bond proceeds in real estate assets across a diversified portfolio consisting of mortgages, residential, commercial, and industrial assets. The income generated through rents, interest, and capital appreciation from our real estate assets flows back to the company. Then, the interest owed is returned to the bondholder, and the process is repeated until funds are withdrawn.

What type of investments do you make?

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By employing a 'value investing' strategy, we aim to build a diversified and resilient portfolio consisting of high quality cash generating real estate assets across a range of asset classes consisting of mortgages, residential, commercial, and industrial assets.

We aim to acquire these real estate assets across a range of sectors with varying risk, return, liquidity, time horizon and regions.

Our diversified approach is designed to deliver outperformance by generating sustainable income and competitive capital returns. This in turn allows us to provide a  fixed 8.50% yield rate through Compound Bonds.

We also aim to empower communities, people, and businesses with access to capital that was historically denied to them. We give loans to underserved and underbanked populations, adding a human touch to the otherwise rigid world of finance.

What is your real estate asset management risk strategy?

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It’s important to note that all financial investments involve an element of risk.

We have designed our real estate asset investing processes with diversification and stability in mind. We invest based on our value investing strategy of acquiring assets for less than what we believe their intrinsic value to be. We will also be diversifying assets across regions, sector, risk and time horizon. Additionally, we will use of technology and data science for investment acquisition. By investing bond proceeds into real estate; we gain access to what is historically the most solid and stable investment class.

What if the stock market goes down?

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Compound Bonds are not correlated to the stock market, so they are not tied to the volatility of the stock markets or interest rate fluctuations set by the Federal Reserve.

How does Compound operate and make money?

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The best investment assets used to be exclusively for the elite clients of huge financial institutions. We wanted to unlock this access for the everyday person, so we built our business around the business models of financial institutions that have been operating for generations on Wall Street and around the world.

Compound Real Estate Bonds's business model and operations are built based on the structure, strategies and principles of asset managers that manage funds for institutions and sovereign wealth funds. We are bringing institutional grade products that were once reserved for the Top 1% by financial behemoths for the everyday person.

We intend to have a diverse stream of income. First, we make a spread between what is paid to you (8.50%) as a bondholder and the return generated when the bond proceeds are put to work in loans and other investments.

Additionally, we will seek to earn rental income from the real estate assets we own, along with capital appreciation, interest payments, and other fees from loans.

Between interest on the loans made and the combination of other real estate investments, we believe that a greater return than the 8.50% will be generated, and we will seek to fund our operations using this difference.

Are Compound Bonds FDIC Insured ?

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No, they are not. FDIC insurance is only for bank depositary accounts and not for Investments like Compound Bonds.

What are bonds?

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A bond is a fixed-income instrument that represents a loan made by an investor to a borrower. In the capital stack, bondholders are in a higher position than being an equity owner because bondholders have a higher priority claim to assets of the company over common and preferred equity owners.

Generally, Bonds work by paying back a regular amount to the investor, also known as a “coupon rate,” and are thus referred to as a type of fixed-income security. For example, a $10,000 bond with a 10-year maturity date and a coupon rate of 8.50% would pay $700 a year for a decade, after which the original $10,000 face value of the bond is required to be paid back to the investor.

Compound Bonds are demand bonds with a 8.50% coupon rate, meaning that they earn a fixed 8.50% rate with interest compounded daily, and can be redeemed at any time.

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If you can’t find answer to your relevant question here, you can always contact us, or find more questions here.
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