CrowdProperty is the latest platform to facilitate funding for property-based deals. On the investor side, CrowdProperty will be open to private individuals with £500 or more, and will be looking to offer them between 5 and 11% annualized returns. For borrowers, the platform will attempt to attract those wanting to fund a new property-related project or re-finance an existing property loan. Practical examples include development projects, project refinancing and buy-to-let investment refinancing.
CrowdProperty will distinguish itself by focusing on financial intermediaries. In what is something of a standout approach within a famously disintermediated sector, CrowdProperty will seek from the offset to pay commission to advisers and brokers in exchange for their driving of lenders towards the platform.
Simon Zutshi, Founder Director of CrowdProperty, offered a deeper insight into the platform:
“Our inspiration for CrowdProperty came from a very simple understanding of the current problems facing many people in a climate of exceptionally low interest rates and increasingly tight lending restrictions from traditional high street lenders.
“Many property professionals in the UK were not getting the money they needed to make profitable property developments happen and most everyday people were not getting as much interest as they would like from their savings. The answer was simple: give people a better return on their money by allowing them to directly lend it to property professionals looking for funding”.
“The big difference of course with CrowdProperty compared to other players in the market is that we are true property market specialists and experts with unrivalled networks of contacts and the ability to find the most exciting and potentially profitable developments which others might easily miss. We want to ensure projects deliver, to maintain trust and certainty with our lenders and ensure our results and reputation will ultimately lead to us becoming the number one property peer to peer lending platform in the UK.”