The ‘Instaloan’ was provided to Field Housing Ltd against a two-bedroom property in Guildford, Surrey (pictured above).

Marwan Field, principal of Field Housing, is a former investment banker and is the founder of crowdfunding platform Byoot Capital. 

The borrower intends to develop the Guildford property in conjunction with a neighbouring site to deliver three four-bedroom townhouses with a gross development value well in excess of £2m.

•   Should more bridging lenders launch mobile apps?
•   Avamore provides £675,000 bridge for apartment in Grade II-listed property
•   Avamore provides £800,000 bridge for mixed-use leisure complex

Marwan – who has featured several times on BBC’s Homes Under the Hammer – contacted Michael Dean, co-founder of Avamore, via a direct message on Instagram to obtain an indicative quote after the pair had followed each other’s accounts for a few months. 

Within a few days terms were agreed for Avamore to refinance the property. 

“I personally have spent a lot of effort on social media outreach over the past year and now we are starting to see the impact,” said Michael. 

“We have previously used LinkedIn to good effect, but it is even more exciting to have successfully used Instagram to originate deal flow. 

“Real estate and Instagram are such natural bedfellows – I can’t think of another social media platform that has as much potential, maybe with the exception of Facebook, but with InstaStories I think Instagram is a game-changer.”

Avamore's Instagram profile - avamorecapital

Avamore has already offered the development finance with the initial advance being a relatively modest amount, but the full facility should exceed £1.3m once fully drawn.

Despite some complications – which slightly delayed drawdown – Avamore was able to deliver a positive outcome.

The funds released from the unencumbered property will go towards the conversion of a pub in south Wales into a residential development scheme.

Once the south Wales project is completed, Field Housing will refocus its attention to the three-unit scheme in Guildford. 

“We are delighted to have started our journey with the customer, Marwan,” added Nikolay Petkov, co-founder of Avamore.

“He’s a great character and very professional. 

“In time, we are also excited to explore JVing with Byoot Capital to provide customers with an integrated debt and equity product, as we have done with other crowdfunding platforms."

Avamore was represented by David Powell of TWM Solicitors, while Field Housing used Ajay Pau of Gandecha & Pau. 

Michael added that Avamore was constantly experimenting with social media platforms to see how effectively it can drive its business.

“I can confirm that most Snapchatters are not quite old enough for development loans! 

“I would encourage brokers to embrace social media even further than they already are as it represents an outstanding opportunity to drive leads, hopefully some of which will come to Avamore, where suitable. 

“Customers will still need good advice, even if it has never been easier to talk directly to the lender, hopefully brokers will see the opportunity here.”