Property Crowd platform is a P2P lending platform that was founded in 2013. The company is based out of the UK and targets savvy investors and experienced lenders.
Investors who are interested in Property Crowd can open an account to see all of the investment opportunities that Property Crowd offers before actually deciding to invest. This company, in particular, focuses on investment opportunities in the real estate industry.
Property Crowd is owned and operated by Global Alternatives Holdings Limited.
Since February 2017, investors have invested approximately £10,000,000 alongside principal lenders, building up more than £50,000,000 in loans. The result has allowed for nearly £260,000,000 in real estate development.
More than £200,000,000 of those loans have already been returned.
The company boasts success, but is the place for you to invest? Or is there another option that would suit you better? Consider this Property Crowd review to help you decide.
Returns might sway your vote
Unlike other P2P companies who are transparent about their returns, Property Crowd leaves much to be desired in this category.
While the interest rate range on investments sits around 8-12%, the company does not indulge information about its average annual return, or the number of investors it is currently working with.
Property Crowd boasts a high level of success in terms of their investments in real estate; however, for those investors who put high importance on returns (who wouldn’t?), the information isn’t easily accessible.
With online P2P platforms, transparency is of the utmost importance. This is something to consider when thinking about investing in the company.
Does a lack of diversity matter?
When it comes down to it, Property Crowd works with experienced investors interested in real estate. After that, there’s not much wiggle room.
Property Crowd only works with the pound, so anyone looking to invest with other currencies is out of luck. Similarly, only investors who are located within the UK can take part.
Investors should also note that this company is only interested in working with serious investors. That is lenders who can fork out a minimum investment of £900. Anything less than that, and an account cannot be created.
While the lack of diversification in this category is bleak, it should be said that their business motives are clear. Anyone who isn’t interested in real estate investment needs to find somewhere else to go with their money.
Key features you’ll want to consider
If you’ve made it past Property Crowd’s prerequisites, then you might be considering what they can offer you. The following features are beneficial:
- Auto Investing: If you’re comfortable leaving your investments on auto-pilot, then Property Crowd has a feature for you. Simply choose an amount and have it invested into specific accounts as often as you specify. This is perfect for anyone who has the money to invest, and the confidence that the company has consistent interest rates.
- Secondary marketplace: Secondary marketplace options are available, giving investors an additional place to try and increase their annual return.
- Past and present investments: Investors will have access to all of Property Crowd’s investments, both past, and present. Information includes full deal metrics, as well as due diligence information.
- The deal room: Once an individual signs up, they’re able to get full access to the website’s Deal Room. Here, investors can read up on all due diligence, provided by the Principal Lender. This includes details of the borrower, property particulars, valuation reports, overview of deal structure, etc.
- 24/7 monitoring: Investors who want to see their money in action will love the 24/7 monitoring feature, which will give them up-to-the-minute updates.
Investors should keep in mind that money deposits can only be done by bank transfer. Additionally, the minimum investment is £900, which greatly decreases the number of potential investors.
What can their website do for you?
When it comes to online reviews of the Property Crowd website, information is lacking regarding the user experience.
That being said, the website itself is filled with all kinds of information about their processes and even exposes some of their current investment opportunities to give people a taste of what they offer.
Those who want to open an account can find that section easily enough, and their system for transferring money is simple.
Is it all worth the risk?
Property Crowd has a page about its key risks, which is refreshingly transparent. However, the list is long. Those investors who do not like high-risk investing might want to consider another investment path.
Risks with Property Crowd include:
- At-risk capital can be completely lost in a variety of situations
- Currency fluctuations can alter the return outlook
- Fluctuations of property market value based on things like legal and political issues, thereby altering return expectations
- Potential decrease in property share value
- Investor’s money is held in separate client accounts
- Exchange rate fluctuations can have a hand in the projected investment returns for an investor
This platform is for strong, savvy investors who are confident in their ability to invest in real estate that will bring back positive returns. However, these investors should also understand and be able to survive when high risks roll in.