New P2P platform CrowdProperty sets £20m target
The platform was designed to facilitate loans between private individuals and property professionals.
The founding team, which comprises of five members, have 70 years of property market experience between them. One is Simon Zutshi, founder of the Property Investors Network, which has over 23,000 private property investor members.
Zutshi, founder director of CrowdProperty, said: “Our inspiration for CrowdProperty came from a very simple understanding of the current problems facing many people in a climate of exceptionally low interest rates and increasingly tight lending restrictions from traditional high street lenders.
“Many property professionals in the UK were not getting the money they needed to make profitable property developments happen and most everyday people were not getting as much interest as they would like from their savings.
“The answer was simple: give people a better return on their money by allowing them to directly lend it to property professionals looking for funding.”
CrowdProperty targets private individuals with at least £500 who are seeking returns between 5% and 11%.
Following its retail launch it will now focus on financial intermediaries. CrowdProperty intends to pay commission to advisers and brokers whose clients become ‘lenders’, while it is also researching the viability of including CrowdProperty finance within ISAs and investment funds.
Zutshi added: “The big difference of course with CrowdProperty compared to other players in the market is that we are true property market specialists and experts with unrivalled networks of contacts and the ability to find the most exciting and potentially profitable developments which others might easily miss.
“We want to ensure projects deliver, to maintain trust and certainty with our lenders and ensure our results and reputation will ultimately lead to us becoming the number one property peer to peer lending platform in the UK.”