Crowd funding buy to let houses

buglawton

cells wrote: »

there would be no way to have ONE landlord in the land, if all the uk rental properties were put into one company it would be worth more than £1 trillion and would be the most valuable company in the world

I think there is room for a pure residential REIT in the FTSE 100. Or rather two such companies, one London focused and one rEngland focused. with about 30,000 properties each. Although they would both be big companies their combined stock would be just 1% of the private rental market, 0.5% of the rental market and just 0.2% of the housing market.

Regarding the cost structure. I see no reason why it has to be high cost with dozens of directors drawing multimillion pounds each. I would see it closer to a large letting agent and expect it not to cost more than 10% of gross rent to run. Probably closer to 5%. So if it were a £10B company making £500m in rent the cost to run the company would have to be below £50m a year and ideally closer to the £30m a year mark.

If it was run by Ryanair maybe. But it would probably end up being run like BT or SSE. I believe most of the truly efficient companies got as far as medium sized while still held privately, and only then went public. How would that work with a property portfolio?

Thrugelmir

cells wrote: »

I have said this lots, but the UK needs a big residential company. A FTSE 100 that is in the top 10 or even the top 5

Grainger.

Though there at least 2 family empires that currently own more properties in total.

chucknorris

I signed up to 'Property Partner' a couple of months ago, I don't want to invest any more in property, I signed up mainly out of curiosity, but also to explore the possibility of other related potential opportunities.

I keep getting emails from them presenting investments, like this one this morning:

https://propertypartner.co/properties/UKBN213AR001?p=prop1&sc=marketplace-uk

Even if I was intending to invest in property, I wouldn't do it this way, but I can see it catching on.

Conrad

cells wrote: »

but on a small scale a landlord trying to convince others to hand over hundreds of thousands or their properties in return for shares would be a very difficult proposition.

A mate of mine from HPC, DID set up a property fund for Berlin, it was all very pro (last time I looked).


I looked at a Company called Dawnay Day Treveria a few years back which was investing in German real estate.


I don't think it would be too hard -, as long as the company memorandum and rules offer total protection against fraud etc, indeed as I get older one day and tire of dealing with tenants I would be the sort to switch to indirect investment

Dan83

There is s kind of property crowd fund going on s few streets away from me, basically a few residents got together, bought an empty house on the street and rented it out, now the group own and rent most of the house's in the street, the rent is reasonable, but I've heard they are very picky. When a house come up for rent they post a leaflet through everyone's door and advertise in local shop windows.

Prothet_of_Doom

It would seem to me that selling shares in a company which then uses some of the money to leverage loans to buy rental properties, (or just buys them outright, is not exactly rocket science).
At any point in time there are 2 ways of valuing the shares
1) What are the assets of the company?
2) What profit is made?

Obviously as a shareholder you would have a vote at the AGM, which would include agreeing or not the salaries of directors, appointing or sacking directors, agreeing dividends to shareholders (or agreeing to reinvent in more stock)
This could be via a ltd company or a PLC.
Any other type of "crowd" funding would be a scam to my mind.

Dan83

When you walk down the street, it's all nice and clean, no litter and all the gardens are nicely kept ect. A friend enquired about a house a while ago and he said part of the rules were, you had to park your car's on the drive and only visitors could park on the road outside, all rubbish had to go in the bin, no bin bags and the house front had to kept looking clean and presentable.

If it works well, good for them, but I'd imadgibe there is nothing worse then landlords bugging you to cut grass ect

buglawton

Conrad wrote: »

A mate of mine from HPC, DID set up a property fund for Berlin, it was all very pro (last time I looked).

I looked at a Company called Dawnay Day Treveria a few years back which was investing in German real estate.

I don't think it would be too hard -, as long as the company memorandum and rules offer total protection against fraud etc, indeed as I get older one day and tire of dealing with tenants I would be the sort to switch to indirect investment

The same Dawnay Day Treveria whos parent company went into receivership in 2008?
Sometimes assets you can kick are more reassuring...