Everyone’s circumstances are different and as such the returns that people get from property crowdfunding vary a lot. Generally speaking, the more money you put in, the higher the percentage return will be but, even if you only have a small amount to invest crowdfunding is still worth it.
Property Expert Series: Ben Grove from Property Moose
- What is Property Crowdfunding and is it a Good Way to Invest?
- How Does Property Crowdfunding Work?
- Secured Loans and Property Crowdfunding with Property Moose
- How to Choose the Right Property Crowdfunding Platform for You
- How are Investors Protected with Property Crowdfunding?
- What is the Future of Property Crowdfunding
- What are the Returns Like with Property Crowdfunding
- Should I Invest in Property, Stocks or Shares?
- What Problems could Crowdfunding Investors Face in the Future
- What Due Diligence is Needed Before Investing in Property Crowdfunding
- What Property Deals Work Best with Crowdfunding
Amy: Ben, what are the realistic, net returns like with property crowdfunding?
Ben: I can’t really talk about what is realistic because ‘realistic’ can be considered to be different for different people.
But what I can say is that, if we look at a snapshot of the website today. So, going on to the Secured Loan Note side of things, the last 4 Secured Loan Notes that we have exited have all exited on the timescales we said they would, which is usually between 6 and 12 months, for the returns that we said that they would.
So, to give you an example, it’s usually between 7% to 12% net return per annum and that can be dependant on the amount of money you invest.
I know that one on the site at the moment is that, if you invest between £10 to £1000, that’s 7%. If you invest over £30,000, it’s 12%.
Obviously, the more you commit and the more you feel comfortable investing, obviously the larger the returns but, at least, from something as small as £10 you can at least start to invest and experience it and hopefully make some money.
Amy: Yeah, and like you say, it’s a great way for people to come and get… Even learn a little more about investing, rather than going out and buying one house for yourself and saving up your whole life and putting all your life savings into buying a property and being a little bit like a deer in the headlights.
This is a great way to mitigate your risk and also go in at a lower entry value as well.
Ben: And that actually is… It’s really rewarding when you… This guy, the other day, he had £5,000 to invest, that’s what he told me. And we worked together and we got to know each other and then he felt comfortable, to invest.
And then the strangest things happen, and this does happen quite a lot… He did that and then I phoned him to say, ‘Thank you very much. I’m really, really pleased. I can’t wait to work with you.’ All that kind of stuff.
And then he said, ‘Now then, what if I want to buy a property outright?’
And I said, ‘I thought you said you only had £5,000?’
He said, ‘Yeah, about that… So, I can see how this works now. I’m actually a high-net-worth investor. What do I do?’
I suppose, yes, of course, we can help people to facilitate the purchase of something that could be considered of high-ticket value. But it was great for me to be like, ‘Okay, so you have tested the water with us, now you are talking to us about something else and funnily enough, the investment that you wanted to put the £5,000 into…’
We were actually able to secure another the unit within that block, within Liverpool, and he’s now working with Creditum Capital, which is our development fund, to actually facilitate the full purchase of one unit.
Whereas we couldn’t do that if we weren’t, what I would consider, to be a property solutions company. So, the DFI Group, which is the umbrella, we have DFI Business Services, we have Property Moose, we have Creditum Capital.
So, between the group and our various, sort of, knowledge base, is so… Andrew is from a legal background, Ben is from an operational background, I’m from a property and investment background, Steve is from a development background and a prolific landlord himself.
Between the four of us and our larger shareholders, we’ve got a lot of experience and I think that relates to investors when they speak to us because we can really help them to understand how to invest their money.
Crowdfunding is the simplest and quickest way to invest in property. In just a few minutes you can be well on your way to building a diversified and balanced, property portfolio.
Unlike traditional forms of property investment, crowdfunding does not require huge sums of money to get involved and opens up the property market to everyone.
If you want to find out more then click the link below where you will find all the information you need to get started including the details of our favourite property crowdfunding platform.
It’s simple, it’s secure and you can invest your money in minutes.