Post by CrowdProperty Representative on Oct 28, 2018 9:00:19 GMT
We often get asked why we’re different, especially recently. So we thought it would be helpful to share the things that make us stand out from the crowd, beyond the 8% secured returns and our 100% track record.
So, in summary, we are different because we:
Our relentless focus on achieving a better deal for both lenders and borrowers has resulted in very strong growth this year. This is enabled entirely by finding more quality projects, as importantly our expertise-based appraisal criteria in our rigorous due diligence processes remain the same.
For absolute transparency, which we fundamentally believe in, we also felt we should update on our current loan book. We have a 100% track record on repaying capital and interest, which includes full capital and interest recovery from the 3 loans which have extended by greater than 180 days (from our 2015 and 2016 loan cohorts). Loans that pass 180 days late are required to be declared in a platform’s published statistics.
We believe in sharing more than is required of us. We show aggregated statistics in standardised form but also list every one of our projects ever funded on our website. In our current loan book, just one project is in any way late – by 28 days as of today to be exact. This development project has been completed and over 60% of the capital and interest owed has already been returned to lenders. In addition to those already sold, 4 of the flats have sales agreed, are in solicitor’s hands and once these are complete, the rest of the capital and interest will be repaid. It is expected that the remaining will be repaid by the end of November and we require weekly updates from the borrower.
In any situation, if a loan is expected to go beyond its contracted end date, we communicate fully with the lenders involved and they receive a higher rate of interest for any late period. We continuously track all funded projects, releasing development funds to the borrower on third-party reports confirming that the appropriate value has been added. The nature of property development projects means that there are sometimes time variances. Our strict processes, however, mean that we proactively understand them, we ensure appropriate security is always in place and we tackle any issues together with the borrower, always in the best interest of the lenders. We update lenders with any issues that arise, making clear any implications on loan timescales.
Our best practice throughout the operations of our business has been recognised by members of the Peer-to-Peer Finance Association (P2PFA), who elected us into membership of the association as the 9th member and the only property development platform. This is recognition from market leaders such as Funding Circle, Zopa, Market Invoice that we have built a robust business and operate with the very best practices of the sector.
As always, we very much welcome your feedback and do please continue to get in touch.
Kind regards
Mike Bristow
CEO & Co-Founder
So, in summary, we are different because we:
- Always take first charge security, the same legal rights that a mortgage company has over a homeowner’s home in the case of default
- Only ever lend on projects with planning permission already in place
- Source projects directly as part of the many ways that we match capital more efficiently, giving a better deal for both lenders and borrowers
- Attract the best projects because we offer a better deal for property professionals in terms of both competitive rates and service – we do not fund weak projects at high interest rates
- Have unparalleled, hands-on expertise at the heart of the business, meaning projects are assessed with deep, specialist property experience
- Are totally independent, only funding third party projects
- Have been and remain solely focused on what we do and our original business model, forever getting better and better and building even stronger and deeper expertise
- Offer upmost transparency on our track record and also the project, the borrowing entity and the people involved in each project, both through information on our website and through project webinars held the night before project launches
- Have a 100% track record in repaying lenders’ capital and interest, paying back over £10,000,000 to date
- Are directly authorised and regulated by the FCA
- Are the only property development platform member of the Peer-to-Peer Finance Association (P2PFA)
Our relentless focus on achieving a better deal for both lenders and borrowers has resulted in very strong growth this year. This is enabled entirely by finding more quality projects, as importantly our expertise-based appraisal criteria in our rigorous due diligence processes remain the same.
For absolute transparency, which we fundamentally believe in, we also felt we should update on our current loan book. We have a 100% track record on repaying capital and interest, which includes full capital and interest recovery from the 3 loans which have extended by greater than 180 days (from our 2015 and 2016 loan cohorts). Loans that pass 180 days late are required to be declared in a platform’s published statistics.
We believe in sharing more than is required of us. We show aggregated statistics in standardised form but also list every one of our projects ever funded on our website. In our current loan book, just one project is in any way late – by 28 days as of today to be exact. This development project has been completed and over 60% of the capital and interest owed has already been returned to lenders. In addition to those already sold, 4 of the flats have sales agreed, are in solicitor’s hands and once these are complete, the rest of the capital and interest will be repaid. It is expected that the remaining will be repaid by the end of November and we require weekly updates from the borrower.
In any situation, if a loan is expected to go beyond its contracted end date, we communicate fully with the lenders involved and they receive a higher rate of interest for any late period. We continuously track all funded projects, releasing development funds to the borrower on third-party reports confirming that the appropriate value has been added. The nature of property development projects means that there are sometimes time variances. Our strict processes, however, mean that we proactively understand them, we ensure appropriate security is always in place and we tackle any issues together with the borrower, always in the best interest of the lenders. We update lenders with any issues that arise, making clear any implications on loan timescales.
Our best practice throughout the operations of our business has been recognised by members of the Peer-to-Peer Finance Association (P2PFA), who elected us into membership of the association as the 9th member and the only property development platform. This is recognition from market leaders such as Funding Circle, Zopa, Market Invoice that we have built a robust business and operate with the very best practices of the sector.
As always, we very much welcome your feedback and do please continue to get in touch.
Kind regards
Mike Bristow
CEO & Co-Founder