Investing
You may invest in one of two ways, as a Shareholder where you become an owner of Shares in the company that owns the property or you may invest in Loan Notes where you are paid a fixed return on your investment.
You may invest in one of two ways, as a Shareholder where you become an owner of Shares in the company that owns the property or you may invest in Loan Notes where you are paid a fixed return on your investment.
Shares
Each property development is bought in a special purpose vehicle company (SPV Company). The SPV Company is owned by the property developer and you are issued shares when you make your investment into the SPV Company via the Crowd with Us website. The properties are developed with the aim to sell for a profit. Assuming there is a profit, you will receive proportionate amount of profit to your investment into the SPV Company.
If a property is rented for a period of time before selling it, you will be issued rental dividends from the rental profits of the property after deduction of running costs such as mortgage payments, maintenance & rental management fees.
If a property is rented for a period of time before selling it, you will be issued rental dividends from the rental profits of the property after deduction of running costs such as mortgage payments, maintenance & rental management fees.
- Rental dividends paid monthly to investors (if property is rented)
- Share in profit from sale of property paid to investors
- If a property is rented, it will be sold when it hits a target sale price (set by developer before deal is promoted)
- Target profit on day one from purchase discount or development gain is 20% profit.
- 5% fundraise fee (of total deal acquisition costs) released to Crowd with Us on completion of successful fundraise.
- Rental management fee is 10% of gross rent plus VAT
- You buy shares in Special Purpose Vehicle (SPV) Company
- The SPV Company owns property with you & other shareholders
- Company shares registered at Companies House
- Company ownership registered at HM Land Registry
- You may sell your shares at any time via the website *
- Properties may be sold when development is complete; or
- Properties may be rented until they reach a sales trigger value set by developer. This protects against a downturning market as it means properties don’t have to be sold if the market is down.
- Anticipated project term 1 to 5yrs depending on project.
- If the properties haven’t reached the sales trigger values within 5 years, in some cases, you and other investors may be able to vote on whether the properties are sold or not.
- Finish development
- Rent until the profit margin reaches pre-determined level set by developer (eg 50% growth on the total deal costs, with 20% achieved by development)
- Sell when the target sales profit is achieved
- Your money back
- Profit shared between investors & developer
- Each developer must undertake identification and anti money laundering checks carried out by Crowd with Us
- Crowd with Us assesses each developer’s project appraisal
- If the due diligence checks are satisfied by Crowd with Us, the property will be listed on website
- Specialist property lawyers are used in the conveyancing process
- If target sale price is not achieved in the target term, investors may vote to decide if property is sold or not
- Where the properties are rented, investors may be given the opportunity to vote if the property doesn’t reach the pre-determined sales trigger value within the given time frame.
- Investor Agreement or Shareholders Agreement
- Share certificates
Loan Notes
In everyday speaking terms, a Loan Note is an instrument (financial document) which allows you to invest in property related loans via the Crowd with Us platform. The loan note funds are invested into specific property projects such as property developments where the loan notes attract a fixed interest and must be repaid within a certain time frame.
In a property development or project, the loan note funds may be used towards any of the project costs.
In a property development or project, the loan note funds may be used towards any of the project costs.
- Fixed interest payments
- Interest paid monthly; or
- Interest rolled up & paid on redemption of the loan notes
- Interest rates typically 4-10% per annum
- Crowd with Us fee typically 2% of funds raised
- You are issued Loan Notes from Special Purpose Vehicle (SPV) Company that owns the property project
- SPV Company borrows your money for project
- Loan Notes secured against Company with debenture at Companies House
- Company notice registered against property at HM Land Registry
- Loan Notes may be sold at any time via the Crowd with Us website *
- Loan Notes term generally 1-5 years
- Anticipated development term 1-2 years
- Anticipated rental term 3-4 years
Loan notes redeemed from project as below:
- Finish development
- Refinance property with standard bank finance
- Rent until the profit margin reaches pre-determined level set by developer (eg 50% growth on the total deal costs, with 20% achieved by development)
- Sell when the target sales profit is achieved
- Each developer must undertake identification and anti money laundering checks carried out by Crowd with Us
- Crowd with Us assesses each developer’s project appraisal
- If the due diligence checks are satisfied by Crowd with Us, the property will be listed on website
- Specialist property lawyers are used in the conveyancing process
- Loan Note Instrument/Document
- Loan Note Certificate
Management
Your Investor Dashboard
Crowd with Us Fees
Crowd with Us is paid a success fee when the funds are fully raised for each deal on the Crowd with Us website, and a success based management fee when a deal is sold (calculated on a deal by deal basis). Where Crowd with Us manages any rental properties, Crowd with Us earns a management fee. Details below.
(1) Deal Fundraise Fee - 5% of the total deal acquisition costs when a deal is fully funded.
(2) Rental Management Fee - 10% per annum (plus VAT) of the gross rent which may be paid to Crowd with Us or to an external letting agent.
Your Investor Dashboard
Crowd with Us Fees
Crowd with Us is paid a success fee when the funds are fully raised for each deal on the Crowd with Us website, and a success based management fee when a deal is sold (calculated on a deal by deal basis). Where Crowd with Us manages any rental properties, Crowd with Us earns a management fee. Details below.
(1) Deal Fundraise Fee - 5% of the total deal acquisition costs when a deal is fully funded.
(2) Rental Management Fee - 10% per annum (plus VAT) of the gross rent which may be paid to Crowd with Us or to an external letting agent.
Old business proverb
"People tend to overestimate what can be achieved in 1 year and underestimate what we can be achieved in 5 years"
At Crowd with Us, we believe that property investing is much the same. Property developing & property rental investing is a mid to long term investment which in 'our opinion' is a safe and steady way to make decent long term returns on your money with reduced exposure to high risks of capital loss. We also believe and have seen from our own personal property investments since 1997 that the returns are much higher on average per year when you combine Rental Income plus Capital Growth (property price growth).
Build to Rent
The model of developing to rent then sell, or Build to Rent, is quite simple. The build/development stage should give you an inbuilt profit on day one. Property developers generally target 20% return on cost on completion of the development.
Rental & Sale
While renting the properties, the rental income generally covers the holding costs (mortgage/maintenance/running costs) and if you invest into the right property, you should make a rental profit as well. Then when you exit by selling your stake in the property or by selling the property, you should make a profit from the increased value of the property(ies).
Of course, we need to caveat the above by saying that there are risks (see our Risk Statement) and also, we are not financial advisers and cannot advise you. We are merely passing on our knowledge from first hand experience and promoting deals on the website which pass our due diligence process.
"People tend to overestimate what can be achieved in 1 year and underestimate what we can be achieved in 5 years"
At Crowd with Us, we believe that property investing is much the same. Property developing & property rental investing is a mid to long term investment which in 'our opinion' is a safe and steady way to make decent long term returns on your money with reduced exposure to high risks of capital loss. We also believe and have seen from our own personal property investments since 1997 that the returns are much higher on average per year when you combine Rental Income plus Capital Growth (property price growth).
Build to Rent
The model of developing to rent then sell, or Build to Rent, is quite simple. The build/development stage should give you an inbuilt profit on day one. Property developers generally target 20% return on cost on completion of the development.
Rental & Sale
While renting the properties, the rental income generally covers the holding costs (mortgage/maintenance/running costs) and if you invest into the right property, you should make a rental profit as well. Then when you exit by selling your stake in the property or by selling the property, you should make a profit from the increased value of the property(ies).
Of course, we need to caveat the above by saying that there are risks (see our Risk Statement) and also, we are not financial advisers and cannot advise you. We are merely passing on our knowledge from first hand experience and promoting deals on the website which pass our due diligence process.