|
|
Post by crgbut147 on Apr 30, 2014 8:29:57 GMT
Can anyone tell me why in the offer letters they always ask for 70 shares at £1000 each?
HP056 to my knowledge is £51k and the next one in line is £58k for HP057.
I'm really asking the question to people who have already invested in projects...do you see the full list of shareholders when you hold a share or shares in any particular project.
I just want verification that everybody see's where the money goes....they could hold out for 70 shares on each project without us all knowing.
Thanks
|
|
|
|
Post by uncletone on Apr 30, 2014 9:06:40 GMT
They also have to cover all the legal fees involved in not only buying but renting out the property, and a significant amount of money for renovation. They probably keep a little bit for themselves as well  When a house purchase is completed, you (if an investor) have the opportunity to download all the legal documentation regarding that property and your investment. And we're talking a good centimetre (oh good - an American spellchecker thinks I can't spell 'centimetre') of paper if you print it out. They are very happy to talk to anybody who might be interested in investing. Contact details on their website.
|
|
|
|
Post by delboy711 on May 22, 2014 12:53:53 GMT
Each project is a separate company ( an SPV) all the subscriptions go into the company as share capital. Yes they will raise more capital than is needed to buy the house. Most of the excess is used for renovations and legal fees, while £4000 goes into the contingency fund to allow for unforeseen expenses. The House Crowd cannot just help themselves to the excess capital.
Our dividends are paid out of the SPV company income, and when the house is sold we get our share capital back, plus our share of 50% in the uplift of the company assets. At that point The House Crowd make most of their money by having the other 50%.
Investors get copied in on all the legal documentation, all the survey reports, and the renovation budgets etc
So far I have invested in 14 projects and it works great for me. They do all the work, and I get a nice steady income stream backed by real assets.
|
|
mikeb
Posts: 1,052 
Likes: 463
|
Post by mikeb on May 22, 2014 17:23:18 GMT
do you see the full list of shareholders when you hold a share or shares in any particular project. On this point ... no, you do not. And I know what you're thinking ... if you don't get to see all the other shareholders names, addresses, inside leg measurements, how can you know if any shares have been sold? But then again, why should you be sent details of all the other shareholders, isn't that a bit of privacy breach? As each SPV is a small company, I don't think Companies House will be posting up details any time soon, either, unless others know better! There's already one indirect way of finding out the other investors on the projects that you have personally invested on, which is probably not intentional ... but would you consider it ethical to share the list of those email addresses just to satisfy your curiosity?
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 22, 2014 20:52:56 GMT
One of the main USPs on this, apart from being able to invest on a very small scale, is the fact that THC do all the leg work a landlord would have to do, hence the 50% cut plus whatever it is they might take in fees, if they do. A return of 6% + half of any sale profit pro rata or, 7.5% income is more than I could get if I became a landlord myself, without the need to take out a btl mortgage or get my hands dirty.
|
|
|
|
Post by GentlemansFamilyFinances on May 23, 2014 11:25:45 GMT
It seems too good to be true!
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 23, 2014 16:49:29 GMT
It seems too good to be true! The website is full of very useful info. If you've not used before, have a look before you decide. If you need further info, don't hesitate to ask but, do your research first to see if it's something that suits you
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on May 26, 2014 12:49:58 GMT
do you see the full list of shareholders when you hold a share or shares in any particular project. ..... There's already one indirect way of finding out the other investors on the projects that you have personally invested on, which is probably not intentional ... but would you consider it ethical to share the list of those email addresses just to satisfy your curiosity? I could I suppose imagine circumstances when we did want to communicate, for example if the housing market turned sour I might want to discuss with my fellow investors if we wanted to sell up soon.
|
|
|
|
Post by delboy711 on May 27, 2014 13:55:03 GMT
Investors get non voting preference shares in the SPV company. The THC Directors have the only voting shares so they are the only ones who get to decide when to sell the house. The Articles of Association of the SPV company says the Directors should sell the house once the value exceeds 125% of the starting capital. If you as an individual decide you no longer want the investment, then you can sell your shares to whoever you like, or else THC will buy them back off you at par value.
To date only one house has been sold, and as far as I am aware two others have recently been put on the market, and another will be shortly according to the latest newsletter.
This is very much a buy and long term hold investment. Don't expect any excitement. Just a steady income.
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 27, 2014 13:59:28 GMT
Investors get non voting preference shares in the SPV company. The THC Directors have the only voting shares so they are the only ones who get to decide when to sell the house. The Articles of Association of the SPV company says the Directors should sell the house once the value exceeds 125% of the starting capital. If you as an individual decide you no longer want the investment, then you can sell your shares to whoever you like, or else THC will buy them back off you at par value. To date only one house has been sold, and as far as I am aware two others have recently been put on the market, and another will be shortly according to the latest newsletter. This is very much a buy and long term hold investment. Don't expect any excitement. Just a steady income. I'd like to add that if you do want to sell a share or shares, admin fees will be applied. Exactly how much is not clear though. As you say delboy711, this is a long term investment with a decent steady income.
|
|
mikeb
Posts: 1,052
Likes: 463
|
Post by mikeb on May 27, 2014 17:56:32 GMT
I'd like to add that if you do want to sell a share or shares, admin fees will be applied. Exactly how much is not clear though. Where did you see reference to this? (I thought I'd read everything, but that's a new one on me!)
|
|
j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
|
Post by j on May 27, 2014 18:54:08 GMT
I'd like to add that if you do want to sell a share or shares, admin fees will be applied. Exactly how much is not clear though. Where did you see reference to this? (I thought I'd read everything, but that's a new one on me!) I'm sure I've read it on their website when I was initially researching THC, possibly under t&c. I'll have a rummage there if I get time & post a link but, I'm certain I read there might be costs incurred if shares sold in that manner.
|
|
