Product Overview of CrowdProperty
CrowdProperty is a leading UK-based peer-to-peer lending platform specializing in residential property development projects. Here’s a detailed overview of what the platform does and its key features.
What CrowdProperty Does
CrowdProperty connects experienced property developers with investors seeking attractive returns on their capital. The platform revolutionizes the way property development projects are funded by cutting out traditional intermediaries and streamlining the lending process. This approach provides a win-win solution for both developers, who gain access to necessary funding, and investors, who can earn higher returns than those offered by traditional savings accounts.
Key Features
Specialist Residential Property Development Lending
CrowdProperty focuses exclusively on funding residential property development projects, ranging from small-scale renovations to large-scale developments. This specialization allows the platform to leverage its expertise and experience in the property market to offer tailored lending solutions.
Rigorous Due Diligence Process
Before listing any project, CrowdProperty’s team of experienced property experts conducts a rigorous 57-step due diligence process. This includes evaluating the project’s location, market demand, feasibility, and potential returns, ensuring that only high-quality projects are presented to investors. As a result, only about 4% of the applications received are funded.
User-Friendly Platform
The platform features a user-friendly website where developers can submit project proposals and investors can browse and invest in these projects. The website provides comprehensive project details, enabling investors to make informed decisions. Investors can register, browse available projects, and diversify their investment portfolios by investing in multiple projects.
Interest-Backed Returns
Investors can earn attractive returns, typically up to 9.5% per annum, backed by first-charge security against the property. These returns are available tax-free through the CrowdProperty IFISA (Innovative Finance ISA).
Loan Funding and Interest Spread
CrowdProperty acts as an intermediary between investors and property developers, facilitating the funding process. The platform earns revenue through a spread on the interest rates charged to developers and paid to investors, as well as fees charged to developers and investors.
Secondary Market
CrowdProperty also offers a secondary market where investors can trade their investments with other investors, providing liquidity to the platform. Fees may be charged for facilitating these transactions.
Project Monitoring
Once a project is fully funded and legal completion takes place, CrowdProperty monitors the project’s progress, ensuring it aligns with the planned timeline. Regular updates are provided to investors, maintaining transparency throughout the project’s lifecycle.
Functionality
Project Selection and Listing
Projects undergo a thorough assessment before being listed on the platform. Once approved, project details, including the loan amount, interest rate, and loan term, are clearly presented for investors to review and invest in.
Investor Onboarding
Investors can register on the platform, browse available projects, and pledge funds towards the loan required for the development. This process is designed to be simple and transparent.
Funding and Project Execution
Once a project is fully funded, the funds are transferred to the project wallet, and work on the project begins. Upon completion and sale or long-term refinancing of the project, investors are repaid their capital along with the accrued interest.
Benefits
- Real Estate-Backed Loans: Each loan is secured against property, providing an extra layer of protection for investors in case of developer default.
- Competitive Returns: Investors can earn relatively high returns, typically between 6% and 9.5% annually, depending on the project.
- Efficient and Transparent Process: CrowdProperty’s proprietary technology ensures an efficient and transparent lending process, from project assessment to investor onboarding and project monitoring.
In summary, CrowdProperty offers a robust and reliable platform for both property developers seeking funding and investors looking to diversify their portfolios with attractive, property-backed returns. Its stringent due diligence process, user-friendly interface, and transparent project monitoring make it a leading innovator in the property development lending industry.