DFSIM Frequently Asked Questions

What is the Debt-Free Syndicate Investment Model (DFSIM)?

The DFSIM is Rise Capital’s signature approach to property investment. Rather than relying on third-party loans, all funding is provided by investors through equity contributions. This removes exposure to third party lender-driven risks.

How does the DFSIM benefit me as an investor?

By removing third-party lenders, you avoid interest rate volatility, refinancing issues, and lender-imposed constraints. You earn a fixed annual return—generally 10%—plus a share of equity, offering both predictable income and growth potential.

What's the equity upside available when investing in the Debt-Free Syndicate model

Investors in the Debt-Free Syndicate may receive an equity upside of up to 10% of the shares in the SPV that owns the project, provided they invest across all quarterly tranches raised for that specific project.

This equity participation is issued as C Shares, which come with the same voting rights on reserved matters as traditional equity investors. This ensures that long-term syndicate investors not only share in the capital growth of the development but also have a voice in key decisions that may impact the SPV.

In addition to your fixed annual return and rental fall-back income, this equity upside provides governance protection and long-term alignment with the project’s performance.

Is the model compatible with SIPP and SSAS pensions?

Yes. Because we operate a debt-free, asset-backed structure, our model is suitable for SASS pensions. With regards to SIPP pensions, they can be converted into a SSAS pension, which we can assist with. See SSAS Pension FAQs.

What makes the DFSIM Shariah-compliant?

Our model does not involve interest-based lending (Riba). All funding is equity-driven, making the investment fully aligned with Islamic finance principles. See Shariah-compliant FAQ’s.

How does the tranche-based funding approach work within the DFSIM?

Projects are funded in multiple tranches, with each tranche corresponding to a specific phase of development. Before funds are released, an Independent Monitoring Surveyor has to issue a payment certificate paying the contractor and professional on reimbursement terms only, therefore adding an extra layer of security for investors.

How is my investment secured under the DFSIM?

All investor capital is protected by a first charge on the property, held by a Security Trustee on investor behalf. This means you have a first inline claim on the underlying property assets in the event of unexpected complications. The great thing about investing in property development tranches is that every time there’s less money remaining to complete the project (as works have been completed), the development is worth more money on the open market.

What kind of returns can I expect?

You receive a 10% fixed annual return throughout the investment period, plus an equity upside stake in the SPV. When the project concludes, you also share in any development profits as well as the 10% fixed annual return until repaid.

What oversight mechanisms protect my investment?

Investor funds are maintained in a third party escrow account ring fenced in the name of the SPV supervised by an independent third party. They are released only when an Independent Monitoring Surveyor (IMS) certifies that project works have been met.

How does the exit strategy work under the DFSIM?

The primary exit involves selling completed units. Proceeds from those sales are used to repay investor capital plus accrued returns. For instance, if a project is anticipated to wrap up in 18 to 24 months, investors receive their returns when the properties are sold within that timeframe. Should there be an issue with selling completed units, the alternative is to rent them instead. Hence why the capital stack is set as 75% LTGDV (gross including interest returns), aligned with that of all buy to let mortgages.

How does the DFSIM compare to other property investment models?

Traditional property investing often leverages outside debt, subjecting investors to higher interest risk and lender terms. Our 100% equity-funded model removes these variables, offering a stable framework supported by first-charge security and independent monitoring as well as third party escrow agents holding the funds.

Can international investors join the DFSIM?

Yes. As long as they satisfy our eligibility criteria and abide by any regulatory requirements in their home countries, international investors are welcome.

Are there any tax considerations I should be aware of?

Tax obligations vary by individual—factors like residency status, and whether you invest via a pension scheme, will affect how returns are taxed. We recommend consulting a professional tax advisor.

How do I begin investing in the DFSIM?

Simply reach out to Rise Capital or visit our website for current project listings. We’ll walk you through the next steps, sharing all relevant information so you can make a fully informed decision.

How frequently will I receive updates on my investment?

Rise Capital issues regular, transparent monthly updates detailing project progress, costs, milestone achievements, and relevant market shifts. We do this via monthly webinars as we believe in keeping investors informed throughout the entire investment lifecycle.

What happens if a project doesn’t sell within 3 months of completion?

If the project doesn’t sell within 3 months of building control practical completion, our rental fall-back strategy is activated. Investors continue to receive a 4% p.a. return from rental income and share in the capital appreciation on refinance or future sale.

Is my capital at risk?

While all investments carry risk, Rise Capital mitigates this through first-charge security, escrow-controlled funds, certified drawdowns, and a fallback rental strategy. Investors also benefit from a capital stack structured within 75% LTGDV — similar to conservative buy-to-let mortgages -- thus meaning that we are able to refinance the rental fall back option via a third party buy to let mortgage lender resulting in both your capital and interest being repaid without waiting for the properties to be sold.

Can I invest in both the Debt-Free Syndicate and Equity within the same project?

Yes. Investors are welcome to participate in both the Debt-Free Syndicate and equity investment tranches within the same SPV.

This dual participation allows you to benefit from:

A fixed annual return (e.g. 10% p.a.) through the Debt-Free Syndicate

Equity upside from project profits upon sale or refinance via your equity shareholding

Many of our investors use this approach to balance income certainty with capital growth, while diversifying their exposure across both positions within a well-structured and secured project.

How does Rise Capital achieve sales in the residential sector?

Rise Capital is a member of OwnNew (https://ownnew.co.uk/), a platform that enables end-user buyers to access the cheapest mortgage rates in the UK.

Through this partnership, Rise contributes 3% of the property value as a homebuilder incentive. This contribution is passed directly to the buyer’s mortgage lender, which then offers the buyer a significantly reduced mortgage rate — typically the lowest rate available in the UK on a 2-year or 5-year fixed product.

This strategy improves affordability for buyers, accelerates sales, and increases the likelihood of timely exits — benefiting all investors in the project.

How does Rise ensure sale reservations achieve exchange?

Through our partnership with Movin Legal, Rise provides each project with a panel of three pre-approved solicitors for buyers to choose from. All three solicitors on the panel have already:

Reviewed the development’s legal documentation

Completed their report on title in advance

When a buyer reserves a property:

The individual property searches are released (pre-purchased in blocks)

One of the three panel solicitors is appointed to act for the buyer

Because the solicitor is already familiar with the project, the legal process is highly streamlined. This enables exchange of contracts within as little as 21 days, ensuring sale reservations are converted into legally binding sales quickly — which supports cash flow and enhances overall investor outcomes.

Can I reinvest profits into future Rise Capital projects?

Yes. Once capital and returns are repaid, you will be invited to participate in new project tranches. Many of our investors choose to recycle profits into future schemes.