Capital Rise

[Deleted User]

Has anyone invested in Capital Rise's Innovative Finance ISA?

I quite like the idea of investing in an IF ISA this coming tax year. I was looking at RateSetter, as I am already an existing customer of theirs, and they have a good few years of operation under their belt.

However, I have always liked the idea of going into a property based investment, which Capital Rise offer. The fact they offer this under an IF ISA banner is a bonus. However, I haven't really heard of this company. They seem new, and there isn't a lot of information about them on the internet, other than their own website.

Can anyone shed any light on them, or have any experience with them?

Thanks

Alexland

Not much response on this one.

You might do better posting on the P2P guide thread on the main Savings & Investments board.

https://forums.moneysavingexpert.com/discussion/4313323

[Deleted User]

Will do ... thanks.

Nardge

cmondynamite wrote: »

Can anyone shed any light on them, or have any experience with them?

Thanks

In answer to this query and for those interested in p2p investment,

CapitalRise are the top pick for the CEO of '4th Way', and have received glowing reviews...

https://www.4thway.co.uk/candid-opinion/top-property-ifisas/#capitalrise

https://www.4thway.co.uk/candid-opinion/capitalrise-review/

I currently have £1000 invested with them @ 9.5%, with the aim of investing a further £2000.

With Kind Regards

masonic

Although I know this is a one and a half year old thread resurrected by Nardge, it does bear some further comment.

I simply cannot understand, given all of the disasters that have occurred and are occurring from P2P development finance, why anyone would consider such a platform worthy of a penny of their capital.

Development finance is among the riskiest of lending activities possible - because you are taking a project and attributing to it a hypothetical valuation based on what the completed project might be worth when/if completed if all the assumptions made about the development are as predicted (the so called Gross Development Value).

I used to think that such loans were investable if the rate was sufficiently high to compensate for the inevitable losses (e.g. 12-16%). However, I now believe the risks are so great that retail investors have no business even considering investing in such loans.

Nardge

masonic wrote: »

Although I know this is a one and a half year old thread resurrected by Nardge, it does bear some further comment.

I simply cannot understand, given all of the disasters that have occurred and are occurring from P2P development finance, why anyone would consider such a platform worthy of a penny of their capital.

Development finance is among the riskiest of lending activities possible - because you are taking a project and attributing to it a hypothetical valuation based on what the completed project might be worth when/if completed if all the assumptions made about the development are as predicted (the so called Gross Development Value).

I used to think that such loans were investable if the rate was sufficiently high to compensate for the inevitable losses (e.g. 12-16%). However, I now believe the risks are so great that retail investors have no business even considering investing in such loans.

Thanks for that Masonic.

I did ask on the Peer-to-Peer Thread if anyone had any reservations with CapitalRise (and also for that matter Proplend, CrowdProperty, and Loanpad), but no one had anything detrimental to offer at the time of writing... Yours is a voice I've frequently heeded, so if you're right then I can consider myself very lucky to have only £1000 invested with them, and not the £3000 I had in mind?

With Kind Regards

masonic

Nardge wrote: »

I did ask on the Peer-to-Peer Thread if anyone had any reservations with CapitalRise, (and also for that matter Proplend, CrowdProperty, and Loanpad), but no one had anything detrimental to offer at the time of writing... Yours is a voice I've frequently heeded, so if you're right then I can consider myself very lucky to have only £1000 invested with them, and not the £3000 I had in mind?

I would say you should consider yourself fortunate not to have invested any more than you have.

The trouble with asking about new or obscure P2P platforms is that it would be very unusual for someone to have something detrimental to offer. All platforms look good in the early days, it takes time for the problems to become apparent.

However, what has become quite clear is, regardless of the platform, some types of loan turn up time and time again when looking at the major disasters where investors have been seriously shafted. Top of the pile is the infamous property development loan.

It simply isn't possible to assess or anticipate the risks when considering investing in development finance, no matter how detailed the information you are provided, and it is abundantly clear the P2P platforms lack individuals with the qualifications and experience to assess such loans - such individuals would be the ones closing the door to all other forms of finance.

This leaves the borrower no option but to try to raise the money from hapless consumers, with no visibility over the ability to raise further tranches of funds as the development progresses. Is it any wonder it transpires after so many of the failures that the borrower was reluctant to put any money into the project other than the money that was borrowed.

DrSyn

Common sense should tell anyone, investments paying twice the yield of the FTSE100, are going to be very risk.

FTSE100 yield = 4% (medium risk)

Capital Rise = 8.5%

If the banks will not supply such companies with funds, its a clear sign to the ordinary investor to stay away!

Alexland

Does the FTSE100 paying roughly twice the yield of a global index also make it very high risk?

Aceace

Nardge said:

masonic wrote: »

Although I know this is a one and a half year old thread resurrected by Nardge, it does bear some further comment.

I simply cannot understand, given all of the disasters that have occurred and are occurring from P2P development finance, why anyone would consider such a platform worthy of a penny of their capital.

Development finance is among the riskiest of lending activities possible - because you are taking a project and attributing to it a hypothetical valuation based on what the completed project might be worth when/if completed if all the assumptions made about the development are as predicted (the so called Gross Development Value).

I used to think that such loans were investable if the rate was sufficiently high to compensate for the inevitable losses (e.g. 12-16%). However, I now believe the risks are so great that retail investors have no business even considering investing in such loans.

Thanks for that Masonic.

I did ask on the Peer-to-Peer Thread if anyone had any reservations with CapitalRise (and also for that matter Proplend, CrowdProperty, and Loanpad), but no one had anything detrimental to offer at the time of writing... Yours is a voice I've frequently heeded, so if you're right then I can consider myself very lucky to have only £1000 invested with them, and not the £3000 I had in mind?

With Kind Regards

Hi nardge,

How did your CapitalRise investment go? 

I think you were given rather over zealous advice regarding investment in property development loans. It's certainly true that they can be problematic, and that some of the cowboy platforms have lost a great deal of their clients money by lending to all sorts of crooks and charlatans. However, there are some excellent platforms out there with deep expertise in handling development loans. I've invested in over 75 development loans with the 4 platforms that you mentioned over the past 2.5 years without any losses to date. 
These types of investments are obviously not without risk,  but I feel that the returns are commensurate with those risks.

Of the 4 you mentioned I would say that Loanpad would stand out as the safest of the bunch. Lenders funds are automatically spread over all loans on the platform at a current average LTV of 29%. That's a very high level of security IMHO. 

As always, don't invest what you can't afford to lose, but dont be totally put off by a negative opinion (or be persuaded by a positive one for that matter) without doing some investigation if its something you're interested in. 

Anyway, I hope your CR investment went well, and wish you the best out luck if you give the others a try. 

badger09

Do you realise you've resurrected a thread on which the most recent activity was almost 12 months ago? Don't hold your breath for a response