Crowdproperty is a peer-to-peer lending platform which specializes in lending to small developers of real estate. It was created in 2014 by Mike Bristow, Andy Hall and Simon Zutshi in Birmingham. The three co-founders come from the real estate industry and have considerable expertise in choosing and handling property portfolios.
We can say that CrowdProperty is a leading lender providing rigorously selected real estate projects which are always backed by first load protection. It actually has an impressive track record of repaying loans and paying investors 100 percent interest.
In terms of the solvency and soundness of the firm, the company has completed a £1.1 million round of capital funding, in addition to its outstanding track record. The campaign was carried out on the crowdfunding platform at Seedrs, with donations from 575 donors and a £15.7 million premoney valuation.
CrowdProperty, led by CEO Michael Bristow, aims to be open and provide both lenders and investors with full details. They do so by checking each of their loans with an independent firm, Brismo, which is the market-leading provider of credit performance data, acting as a trusted third party and auditing the entire lending process.
The organization has won 'Best Data Clarity' award given by the well-known Fintech Altfi webiste because of its dedication to transparency. And the fact that it is the only real estate investment site that was named to the Peer2Peer Finance Association's board of directors along with Funding Circle, Zopa and 5 other industry leaders. Furthermore, the company is now a member of the associations UK Crowdfunding and UKPA (UK Proptech Association).
To sum up, we may conclude CrowdProperty is consistent with the industry's best business practices and the highest ethical standards.
The company's website looks very polished, friendly and well-built. This provides general knowledge about the organization and some data on loans to date for visitors. They indicate on their website that they have financed 600 properties worth nearly £100 m - with more than 7,000 creditors who have borrowed almost 40 million and of whom only £14 million have been repaid.
The only negative point is the difficulty in seeking more comprehensive details on how the process of registration, loaning and investment works and the different options: loans, autoinvestment, IFISA. Perhaps it would be interesting if they added a segment called 'Learn' to support the less experienced investors.
If before we said that it is often difficult to find information on your website, what has to be illustrated very positively is CrowdProperty's customer support, which can answer any concerns or problems that you have by phone or email. A team of 30 people joins the three co-founders, more than enough to offer outstanding customer support to investors (as well as borrowers) at CrowdProperty.
One indication of the good work on their part is their Trustpilot 5-star ranking. Those who have invested in multiple projects are satisfied with the service they have received so far, and say they have enjoyed good returns and regular updates on their investment progress.
Benefits and Drawbacks
- Licensed by FCA and regulated since 1 November 2017
- Built in 2014, with a proven track record
- Return on investment 100 percent
- Simple enrollment process
- 1st legal security charge
- 8 percent annual profitability target
- No buyback guarantee
- No secondary market
CrowdProperty Registration and Investor Requirements
CrowdProperty registration is not restricted to UK residents but limited to EU nationals who can provide proof of residency in the EU. And only members of the European Union can invest.
Therefore, the company demands that its European investors have a bank account with an English entity. Luckily, in order to open a bank account there you don't have to live in the UK and many banks, particularly online banks, don't ask for proof of address to open an account.
When registered, potential investors may review the projects accepted by the CrowdProperty team on the live projects page and pick, committing an amount, which projects they would like to invest in. Investors invest cash into their ISA portfolio, or move assets from pre-existing ISAs. The principal and the interest shall be returned to the investor for reinvestment or withdrawal upon completion of the project. The CrowdProperty team keeps investors up-to-date by constantly sending updates as new ideas are put online and by hosting insightful webinars to help them make decisions.
Is Investing in Crowdproperty safe?
The real estate experts at CrowdProperty systematically analyze and conduct a robust Due Diligence on each project plan, evaluating both the developer and the history of the partners. That project must meet a requirement of 25 percent cost return and loans must not exceed 70 percent of the LTV (Loan To Value) and loans are phased in tranches for larger loans.
Moreover, the platform only allows loans on those properties on which it can report these loans as first load, and it has preferential right over the property in case of default.
Should I invest?
Perhaps the best example of the good work they do at CrowdProperty is the pace at which they close any chance they publish on their website, completing 100 percent of each project in just a few minutes. It's clear that their investor group has full trust in the product.
CrowdProperty main features and highlights
- Commercial Real Estate