Crowd-funded HMO/buy to let – new business opportunity?
With the ever increasing popularity of peer to peer lending sites like Zopa, Ratesetter, Rebuilding Society etc, why has some enterprising group come up with a way of participating in the burgeoning rental sector for those without the resources or time to commit to a full BTL of their own? I’m sure many would jump at the chance of earning 8, 9, 10 or more % on part of their savings, plus the possibility of a substantial capital gain, rather than suffering the paltry rates offered by the traditional banks or building societies. Investors could club together, from a minimum investment of, say £1000, to buy into a property portfolio starting at £100,000-500,000, each receiving an appropriate % of rental income and capital gain at the end of the investment period ( 5 years?).
I would jump at the chance, and would welcome feedback from others keen to join in this market without committing £100-£200k to a single property investment and all the personal time commitment that goes with it.
Thoughts?
Derek
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Member Since January 2015 - Comments: 1
5:59 PM, 12th January 2015, About 12 years ago
Derek
As the owner of a HMO property I recently looked at options to raise funds against the property via the crowd funding route. Although there are companies out there offering this I have failed to find one that allows me to promote my own property and attract investment. We have potential to receive £35k in rental income from one property and I was willing to offer a good return and capital growth to investors but there is not a platform for this direct involvement – is there?