Crowd funding and technology are changing property investment

Crowd funding and technology are changing property investment

10:35 AM, 31st May 2018, About 5 years ago

Text Size

After two successful crowd funding projects, which were aimed at planning gains and considered to be high risk, we are happy to say that the success and the test of time delivered results which led to all investors being paid back with a profit.

In my opinion crowd funding has a very strong place and will become a key way in the future for property investors to both raise funds and invest in.

For many new and younger aspiring property investors, staring off may seem a stretch too far.

Crowd funding not only allows people to invest small amounts across multiple projects, but it becomes the bridge from being a spectator to being part of a range of developments and investments.

In the news this year we’ve heard of many high street retailers struggling in today’s market. Retailers are not struggling because people are not buying, its because the market has changed and those retailers that have embraced the changes are becoming stronger and those who haven’t struggle or close.

Retailers focusing on consumer journeys and experiences, backed up by a strong website bring the whole package.

Property investing has been some what left behind in technology, but in many ways we will see similar shifts to how people invest and raise funding.

To some a new BTL, means rolling up your sleeves and getting down and dirty. Doing work, cleaning and managing tenants are all part and parcel of being in BTL in some shape or form.

Crowd funding and technology however is changing this.

Being able to search new opportunities from your iPhone, in bed on a Sunday morning whilst sipping your coffee is a very real way of identifying new possible investments.

Deciding to invest via debt or equity isn’t a case of one being more risky than the other. I would suggest looking at the specific projects and seeding through to see if the way the structure of a project fits your investment desires. This could be equity or debt (or a mix of both)

We’ve recently launched a new project.

This is an equity raise meaning investors can own a percentage of commercial site. The site is established and already let. The way we have structured this is investors can ‘dip their toe in’ and start of from just £1.

The return isn’t going to make anyone a millionaire, but the 5% projected return per annum will be paid monthly to investors from the rental income. This allows investors to receive monthly statements and payments just like being a BTL landlord.(CAPITAL AT RISK)

When the property is sold the share of capital growth could also give investors a return of up to 25% on their original investment. (CAPITAL AT RISK)

Is this type of investment, which isn’t a development and which pays monthly going to be what the market wants?

Well just like the retailers who are becoming stronger in a tougher market, what we’ve tried to do is make the experience more consumer focused.

Investing from £1 and receiving monthly payments we believe ticks some boxes.

What do you think about crowd funding & technology influencing the way we invest?

Do you think crowd funding only has a place for higher risk, higher return development type projects?

Do you think asset backed and rental income at a more conservative rate will be more fitting in today’s market?

We’d love to hear your comments

If you’d like to review the project in question please contact me using the form below.

Contact Dan Trevidi

Dan is the CEO of Grace Charles property company Ltd

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now