Property partnership- crowd funding

bee78

Hello everyone,

Maybe i am posting this in the wrong section.

Anyone heard of property partnership- crowd funding a property. It works like buying and selling shares in a stock market. A property come up for sale, and it is crowd funded by way shares in the property. Depending on the resale value and the rental yield of the property the dividen yield is calculated. Has anyone embarked on scheme. I know there are risk involved with property prices / rent going up and down, and dividend yield might go down. What are other things do i have to be careful about. Has anyone tried this.

AdrianC

There are several schemes - TheHouseCrowd and PropertyMoose are the biggest.

bee78

I was hoping for more insight. Has anyone tried this. I am disheartened by the saving interest rates, and would like to embark on this venture. Could anyone who have some knowledge on this advise. Thanks.

patman99

If you are disheartened by the poor savings rates, then what about lending via sites like Zopa and Ratesetter ?. The returns are much better than what you would get if you put your money in a savings account and unlike the crowdfunding thing, you start to get a return with the first payment on the money borrowed from you.

No need to wait for a property to be sold/rented-out to see a return

AdrianC

bee78 wrote: »

I was hoping for more insight. Has anyone tried this.

Yes, quite a few have.

A quick google would probably have found http://p2pindependentforum.com/ - with a lot of info on both equity-backed crowdfunding such as THC and pure P2P lending such as RS/Zopa.

There's a whole stack of sites, concepts and schemes - you REALLY do need to do your own decision, dip a toe in, and see what fits your head best.

eddddy

bee78 wrote: »

I was hoping for more insight. Has anyone tried this. I am disheartened by the saving interest rates, and would like to embark on this venture. Could anyone who have some knowledge on this advise. Thanks.

It sounds like you may be comparing interest rates for a highly regulated, 100% safe investment...

... with interest rates for a completely unregulated, high risk investment.

As you're thinking about unregulated property investment, you need to understand the property market, the investment company and the investment project very, very well.

I would be anticipating many hours of reading contracts, leases, ASTs, balance sheets, cash flow forecasts, directors CVs etc before investing a significant sum (i.e. a sum that it would hurt me to lose) in a venture like this.

paddytt

There is a phone number on the House Crowd website - why not speak to them, ask to visit and make an assessment? They are currently on project #140, so if there are say 20 investors average per project, then there are about 3,000 people invested. But it could be anything up to double that number.

These scheme's haven't really been running long enough for many people to have had the full experience from womb to tomb of buying and cashing in. So you may not get the complete answer that you are looking for.

Good luck with your decision

paddy

G_M

bee78 wrote: »

Anyone heard of property partnership- crowd funding a property. It works like buying and selling shares in a stock market. ....

So if you want your money back you can sell your 'shares' at any time at ..... what value...???

AdrianC

...and to whom?