CrowdProperty (www.crowdproperty.com) today announced it now has two new property developments live on the site and ready to be financed. Anyone with £500 or more can pledge towards the projects and receive either 5% or 10% gross returns.
CrowdProperty is a peer-to-peer lending platform designed to facilitate loans between private individuals and property professionals. Unlike other competitive propositions the business is run by highly experienced property industry experts. Since launch on August 26th, over 2,500 prospective lenders have visited the new website with more than 40 new property projects already having been submitted by potential borrowers.
Former Public House – Property development offering 10% gross return (annual interest)
A former public house that has detailed planning consent to convert into 2 retail units on the ground floor, 3 one bed flats on the first floor and 1 one bed flat on the 2nd floor. The refurbishment has commenced and will be completed in November 2014. It is anticipated that the sales phase will be completed by end of Q1 2015. The borrowers are very successful property developers, who have completed over 150 property development projects. Full information: https://crowdproperty.com/project/41
Brixton Apartment – Refinance project offering 5% gross return (monthly interest)
2 bedroom, 1 bathroom apartment in Brixton, owned and rented out by the borrower since 2006. The borrower intends to hold and continue to rent out the property to benefit from long term capital growth. The borrower has a total portfolio of 5 properties in London all with low loan to value mortgages. Full information: https://crowdproperty.com/project/62
Simon Zutshi, founder director of CrowdProperty, explains:
“Even at an early stage we are very encouraged by the interest levels in our specialist property lending platform. Now, with two very attractive projects available, visitors can become lenders and start pledging support with a choice of returns on their money, both of which are potentially much more attractive than alternative investments”
CrowdProperty is aimed at two different groups of people. First and foremost, the ‘lender’; private individuals with £500 or more seeking to achieve higher returns (5-11% gross) on their money than most traditional savings accounts; secondly ‘borrowers’ or property professionals, that wish to borrow money from the crowd of lenders to finance a new property project or re-finance an existing one. This includes development projects, project refinancing and buy-to-let investment refinancing.
The revenue model for the business is straight-forward: CrowdProperty take a one-off 3-5% arrangement fee from property professionals (borrowers) and pass the full amount of the gross interest (5-11%p.a.) payable on the loan to the crowd of private individuals (lenders). Borrowers can apply for up to 100% finance on new developments at 9-11% p.a. or up to 80% loan to value for refinancing projects at 5-6% p.a, depending on a set of proprietary criteria. Unlike most P2P lenders, CrowdProperty secures all loans with a first legal charge against the property asset lent against – in much the same way as a bank or building society would.
All new projects on CrowdProperty are put through extensive due-diligence and screening by a team of property experts to ensure they represent a robust and secured opportunity. Once it has been CrowdProperty approved, the project is added to the website’s projects section where private individuals (lenders) have the opportunity to pledge money. Contributions are paid directly to the Company’s solicitors and are only taken once the funding target is fully subscribed. Once the project is financed, it is carefully monitored by the CrowdProperty experts as it progresses to ensure money is being used correctly and the project is on target to reach or surpass its success criteria.