Crowdfunding UK property

[KSH]

Has anyone had any experience of using crowdfunding platforms to finance the acquisition or renovation of property in the UK - whether it be commercial or residential property? Any comments welcome - I'm looking for both positive and negative experiences. Thanks.

 

[Nicholas Wallwork]

I have spoken recently to a property fund who approached a property crowd funding site and simply bought all of the stock in one hit (i.e. funded every deal on there). So I imagine the developers had a positive experience as they would have got their funding quite quickly...

It could well be an excellent source of stock and high yielding returns for these larger institutional investors as the crown funding companies do a fair bit of due diligence themselves before offering the site out. You can't get finance and backing from them if your deal doesn't stack up...

 

[KSH]

I have spoken recently to a property fund who approached a property crown funding site and simply bought all of the stock in one hit (i.e. funded every deal on there). So I imagine the developers had a positive experience as they would have got their funding quite quickly...

It could well be an excellent source of stock and high yielding returns for these larger institutional investors as the crown funding companies do a fair bit of due diligence themselves before offering the site out. You can't get finance and backing from them if your deal doesn't stack up...

Thanks Nicholas

Don't suppose you have an particular case studies you could point me towards? Also, do you know what kind of stock was being funded? e.g. low income residential housing, commercial office buildings, warehouses etc.

 

[nmb]

As crowdfunding becomes more popular there has been a significant increase in the regulations covering this particular type of investment. This greater transparency looks as though it is translating into even greater interest and investment. Cutting out the middlemen (dealmakers) takes out a layer of cost to the benefit of all parties.

 

[Nicholas Wallwork]

Thanks Nicholas

Don't suppose you have an particular case studies you could point me towards? Also, do you know what kind of stock was being funded? e.g. low income residential housing, commercial office buildings, warehouses etc.

Sorry it was just a conversation with a particular fund manager... The assets were residential development opportunities (offices to resi etc...)