Category

Crowdfunding

Property Crowdfunding. Simple, secure and diverse property opportunity. Similar to other crowdfunding loans, but linked to returns from property. They are a means for property companies to raise money via lenders. The sector has witnessed unprecedented growth since the banks ceased a flexible approach to lending in 2008. Private lenders are paid a fixed return over an agreed term. This provides a fantastic choice for those who know that they don’t need their funds for a specific time period, such as savers or people choosing to use money locked in their old employee or private pension funds.

A Property Loan is a legally binding contractual agreement between lender and property company. The ‘contract’ explains how the property company will use the loaned funds, how much interest they will be paying the lender for the length of the term, how the loan will be secured and when the term ends.

The appeal of the Property Crowdfunding Loan, for most, is the usually higher rate of interest that this type of loan can achieve due to the sector the money is invested in and the diversification. The property acquired by the borrower provides a higher degree of security than unsecured lending because the property company’s obligation to repay is backed by security linked to a tangible asset.

For some, using their savings or pension to make Property Crowdfunding Loans is a very profitable and secure option.