Is Property Crowdfunding Part of your Finance Toolkit?

Posted on 02 October 2020

Property Crowdfunding - Add it to your Finance Toolkit

Property crowdfunding is a type of property investment whereby the funds of many investors (‘the crowd’) are pooled together and used to buy a property or project, invested for planning gain or lent to developers to finance a property development.  A portion of the finance stack is typically funded through the crowd, the remainder being funded by traditional finance. 

This can be beneficial for several reasons: it’s a fast way of raising a large amount of money, and means investors wanting to commit smaller amounts can gain access to property investment opportunities they wouldn’t otherwise be able to participate in.  It also allows developers to raise brand awareness by putting them in front of many potential investors in one go. 

Once the project goes ahead, returns are proportionately shared between the individual investors. For a property equity investment, this is typically rental income and any capital appreciation generated by increases in the underlying value of the property. For a property-backed loan investment, this is interest on the lent funds.

Property Crowdfunding is rapidly growing in popularity and has opened up a whole new finance stream for supporting SME developers, helping them bring more family homes to market. 

Want to learn more? 

Attend our 
online crowdfunding course that teaches you the basics about crowdfunding.   You will learn about:

  • The different types of Crowdfunding
  • How you can use it to raise funds for your property business
  • The different funding options and how this sits in your finance stack
  • The benefits to your property business
  • Regulation and the importance of being and staying compliant
  • Financial promotions – what this means when raising finance
  • Using and accessing ISA and SSAS funds for your project

Attend The Online Course Here

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