Earn 8%p.a. first-charge secured returns, tax-free through the CrowdProperty ISA.
Crowdproperty is a peer-to-peer lending platform specialized in loans to small real estate developers. It was founded in Birmingham in 2014 by Mike Bristow, Andy Hall and Simon Zutshi. The three co-founders came from the real estate sector and have extensive experience in the selection and management of real estate portfolios.
We can say that CrowdProperty is a premier lender offering rigorously selected real estate projects that are always backed by the security of the first load. In fact, it has an impressive track record of repaying loans and paying 100% interest to investors.
In terms of the company's solvency and soundness, in addition to its excellent track record, the company has closed a £1.1 million round of capital funding. The campaign was conducted on the Seedrs crowdfunding site, with contributions from 575 investors and a premoney valuation of £15.7 million.
CrowdProperty, led by CEO Michael Bristow, strives to be transparent and provide maximum information to both borrowers and investors. They do this by verifying each of their loans with an independent company, Brismo, which is the market-leading provider of loan performance data, acting as a trusted third party and auditing the entire lending process.
As a result of its commitment to transparency, the company received Fintech's 'Best Data Clarity' award from the well-known Fintech Altfi portal. Or the fact that it is the only real estate project platform elected to the board of directors of the Peer2Peer Finance Association along with Funding Circle, Zopa and 5 other industry leaders. In addition, the platform is also a member of the UK Crowdfunding and UKPA (UK Proptech Association) associations.
In summary, we can say that CrowdProperty is aligned with the best operating practices and the highest ethical standards in the industry.
The company's website looks very professional, attractive and well designed. It includes general information about the company and some statistics on loans to date for visitors. On their website they indicate that they have financed 600 properties worth almost £100 million. With more than 7,000 investors who have lent almost 40 million and of whom almost £14 million have been repaid.
The only negative point is the difficulty in finding more detailed information on how the registration, loan and investment process works and the different options: loans, autoinvest, IFISA. Perhaps it would be good if they added a 'Learn' section to help those less experienced investors.
If before we said that sometimes it is difficult to find information on your website, what, however, must be highlighted very positively is the customer service of CrowdProperty, which will solve us by phone or email any questions or incidents we have. The three co-founders are joined by a team of 30 people, more than enough to provide excellent customer service to CrowdProperty investors (as well as borrowers).
One example of this good work on their part is their five-star rating on Trustpilot. Those who have invested in multiple projects are satisfied with the service they have received to date and say they have enjoyed good returns and regular updates on the progress of their investments.
Registration with CrowdProperty is not limited to UK citizens, but is limited to EU citizens who can provide proof of residence in the EU. Therefore, only European Union citizens can invest.
In addition, the platform requires its European investors to have a bank account with an English entity. Fortunately, you don't have to live in the UK to open a bank account there and many banks, especially online banks, don't ask for proof of address to open an account.
Once registered, potential investors can review the projects that have been approved by the CrowdProperty team on the live projects page and select which projects they would like to invest in, committing an amount. Investors deposit cash into their ISA portfolio or transfer funds from pre-existing ISAs. Upon completion of the project, the principal and interest are returned to the investor for reinvestment or withdrawal. The CrowdProperty team keeps investors up to date by sending regular updates as new projects are put online and by organizing informative webinars to assist in decision making.
CrowdProperty's real estate experts thoroughly evaluate and carry out a rigorous Due Diligence on each project proposal, examining the developer as well as the background of its partners. Each project must meet a criterion of 25% return on cost and loans do not exceed 70% of the LTV (Loan To Value) and for larger loans, loans are staggered in tranches.
In addition, the platform only makes loans on those properties in which it can register such loans as first load, so that in case of default it has preferential right over the property.
Perhaps the best example of the good work they are doing in CrowdProperty is the speed at which they close each and every opportunity they publish on their website, completing 100% of each project in just a few minutes. It is clear that their community of investors has full confidence in the platform.
Are you considering CrowdProperty but still have unanswered questions? Or maybe you are a seasoned CrowdProperty investor, and you have a clear picture of the platform? Go ahead and post your questions or opinions below!
CrowdProperty (www.crowdproperty.com) is the UK's leading specialist property project online lending platform in the UK, exceptionally efficiently matching the demand (quality property professionals undertaking quality property projects) and supply (retail/institutional investors) of capital for value-creating property projects, delivering a better deal for all – borrowers, lenders, the under-supplied UK housing environment and spend in the UK economy.
Actual property development and investment experience lies at the heart of the business meaning hands-on, expertise-led due diligence and loan monitoring. Lending is focused on the SME property professional market, a key segment for supplying much needed UK housing stock, which is poorly and inefficiently served by traditional funding sources. CrowdProperty funds property professionals undertaking any sort of property project (including auction purchases and bridging), structuring the perfect funding product and doing so with greater speed, ease, certainty and expertise than anyone in the market. As property people providing property finance, we intimately understand the market needs.
CrowdProperty is authorised and regulated by the FCA, is an HMRC approved ISA / IFISA manager and is a founding member and only property development specialist platform in the Innovate Finance 36H Group (and formerly the only such platform on the board of the Peer-to-Peer Finance Association). CrowdProperty became the first and only property development/bridging P2P lender to become Brismo Verified, independently validating CrowdProperty’s market-leading performance, showing significant outperformance of Brismo's UK P2P Index.
CrowdProperty facilitates debt-based, asset-backed loan contracts between Investors and Borrowers via our online platform. Investment funds are from retail investors. CrowdProperty exists because we match the supply and demand of capital far more efficiently than traditional lending institutions, thereby giving both Investors and Borrowers a better deal.
We are solving major pains being experienced on both sides of our marketplace. On the one hand, property professionals are receiving appalling service from traditional funding providers, especially in terms of ease, speed, expertise and access to decision makers, all of which are pivotal to our proposition. On the other hand, the general public are mostly getting sub-inflation returns on their savings – according to the Bank of England there is £1.3tr in savings accounts earning on average 0.8% interest. The big reason we can offer higher returns of 8% is because of our structural cost advantage. We don’t have the high cost bases of traditional lenders, which include, for instance, branch networks, origination costs, legacy IT systems and regulatory cost of capital. We have purpose-built technology underpinning both very efficient and expertise-led systems and processes. Additionally, if we introduce interest rate changes, it is always applied to both sides of the marketplace. The CrowdProperty ISA then adds a tax-free cherry on top of the cake.
Additionally, this UK has a housing supply crisis and whilst the Government identifies small and medium-sized developers developing smaller parcels of land as a crucial part of the solution, traditional lending institutions either won't lend or make it very hard to borrow, despite significant demand. We know this because as property professionals, we've been there. We understand these frustrations through decades of personal investing and developing experience through multiple economic cycles.
As a result of our superior understanding, extensive hands-on experience, expertise-led due diligence and insistence on securing each project with a first legal charge, we have a 100% capital and interest payback track record.
CrowdProperty is different because we:
Discover more at www.crowdproperty.com.
Find out more about alternative finance, peer-to-peer lending, crowdfunding, property and CrowdProperty on the CrowdProperty Blog which includes our series of 40 articles explaining these exciting hot topics: https://blog.crowdproperty.com
INVESTMENT RISK WARNING
Investing in property involves risks, including illiquidity - the inability to sell assets quickly or without substancial loss in value -, lack of dividends, loss of investment and disolution, and it should only be done as part of a diversified portfolio. Your capital is at risk.
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INVESTMENT RISK WARNING
Investing in property involves risks, including illiquidity - the inability to sell assets quickly or without substancial loss in value -, lack of dividends, loss of investment and disolution, and it should only be done as part of a diversified portfolio. Your capital is at risk.
INVESTMENT RISK WARNING
Investing in property involves risks, including illiquidity - the inability to sell assets quickly or without substancial loss in value -, lack of dividends, loss of investment and disolution, and it should only be done as part of a diversified portfolio. Your capital is at risk.
INVESTMENT RISK WARNING
Investing in property involves risks, including illiquidity - the inability to sell assets quickly or without substancial loss in value -, lack of dividends, loss of investment and disolution, and it should only be done as part of a diversified portfolio. Your capital is at risk.