B&C can exclusively announce a network is to launch an online crowdfunding platform. .
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div>B&C can exclusively announce a network is to launch an online crowdfunding platform.
The Property Investor Network unveiled its plans to its members last week for its new venture, Crowd Property. The platform will be launched early next month.
Initially, the minimum investment was going to be set at £50,000, however, due to the high volume of potential investors falling under this bracket, the investment has now been set at a minimum of £500.
Property investor and founder of the network, Simon Zutshi, plans to put his own projects within the venture, including its debut refinance project of £800,000.
Pin members pitched in their questions in the live webinar, in which Simon responded directly to their questions.
Simon started: “I’m going to explain how Crowd Property plans to solve market issues of the moment. Those being that people have great developments they can’t fund and those who want to get a better return on their money.”
The platform makes its money out of a 5 per cent arrangement fee charged to the investor. Crowd Property obtains a first charge on the property on behalf of the investors and will step in should a realisation occurs.
The projects funded on this platform will be carefully curated by the group, with a cut off amount being a minimum value £400,000. One member in the webinar asked about whether accepted projects had to be commercial or residential. Simon confirmed that this would have to be relevant to the deal.
The platform will offer two products, a refinance product and a development finance product.
The development product has a term of between six to 18 months and a suggested annual interest rate of 10 per cent.
The alternate product has a term of two to three years, with 6 per cent interest per annum. This is paid out monthly.
Crowd Property has attained its Consumer Credit licence and has received its interim permission from the FCA.
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