Peer2Peer Property Lending (Investment)

[Jayman21]

Hello All,
Looking through the property investment strategies and I failed to see Peer2Peer lending on properties. I believe this strategy has now taken center stage across the UK and internationally. I am currently considering investing via Crowdproperty and LendInvest (among many others).

Also looking at these investment platforms, I realised that the returns promised are within the region of 7% to 10% per annual which is often around what you expected when you buy to let a standard 2 bed flat. So am thinking these approach could be a good idea most especially keeping you money on the platforms, making monthly commitments for example £1000 to £2000 each month but spreading your investment across different projects to reduce risk.

Is this a good or bad property investment strategy to start off with? what are the unforeseen risks? as this will be my first property investment experience.

If the peer2peer lending in the property market is a great idea can you recommend the best once for the UK and is it also possible to do same in the USA market if resident in the UK?
Thanks

 

[nmb]

In the early days there were concerns that the information provided to potential investors was not as accurate as you would expect. As crowd funding continues to grow in popularity so the regulations have been tightened but perhaps further needs to be done? Is crowd funding for property investments the perfect platform to attract relatively inexperienced property investors looking to spread the risk of their relatively small investment pools?

Don't get me wrong, this platform plays a vital role in reducing financing costs and is certainly used to fund many property developments. However, are all participants fully aware of the potential risks?

 

[Jayman21]

In the early days there were concerns that the information provided to potential investors was not as accurate as you would expect. As crowd funding continues to grow in popularity so the regulations have been tightened but perhaps further needs to be done? Is crowd funding for property investments the perfect platform to attract relatively inexperienced property investors looking to spread the risk of their relatively small investment pools?

Don't get me wrong, this platform plays a vital role in reducing financing costs and is certainly used to fund many property developments. However, are all participants fully aware of the potential risks?

NMB thanks for your comments. These are question constantly ringing in my mind as I attempt to emback on the risk. The serious question is it worth it as an investment channel?

 

[nmb]

Hi @Jayman21 There is no doubt that peer-to-peer investment platforms are better regulated and more transparent than ever. You only need to look at the millions of pounds being raised in this way to see the confidence that many investors have in this particular platform. While you should always do your own research personally I would have no problems using peer-to-peer investment markets in the future.

 

[Jayman21]

Thanks @nmb
Would recommend any reliable peer2peer platform for crowd funding for property investments. I have come to realise that I need to establish a growing list of reliable platforms to invest in in order to reduce my risks.

Strategy: spread investment across platforms then across projects within each platforms.