Who has dealt with PM

I also have a few thou with them to diversify from equities and P2P loans which I regard as higher risk.

Thus far the 3% interest pending completion has been paid and the rent received has been in line with expectations. I have not experienced any void periods. None of their investments has yet run to completion, however, so there is no data against which to test the original projections.

I see the main risks as being:

1) Property prices can fall as well as rise, and
2) If that happens, investors might vote to take a lower capital return, or might vote to extend the investment period locking in your funds for longer than you wanted.

Well I've took the plunge and gone for the minimum investment on the County Durham property, It's taking a long time to fill but evidently I'm getting 3% until it does (better than nothing).
As far as I can make out at the end of the given period the property is sold and after deductions the money remaining is divided between the investors, hopefully with a capital gain - no harm in hoping
I understand new look web site is due to be launched soon so there may be some new properties to look at

Hi all



Thanks for the posts and questions regarding exit.



Firstly, I must say that we are yet to go through an exit as our terms have been for a minimum of 2 years to date. That being said, we have a very clear process in place for dealing with the exits, always with our investors' best interests in mind.



As many of you will know, within our fees is a profit share of 15% of the net capital growth (after costs and expenses are deducted). We did this to align ourselves with our investors' interests and show "skin in the game". However, control of when and on what terms a property is sold is down to the investors through an online voting process.



Each property is listed with a fixed term in mind, say 2 years, and we would normally expect an exit to happen quite close to that time.



Around 2-3 months before the expiry of the term, our investment team will conduct a full exit review of the property, including appraisals from local agents.
Our team will then look at the best option for exiting the property for a combination of (i) the best price and (ii) the shortest exit period, and then write an exit report.

This report will be circulated to the investors, along with the proposed exit route.

Investors will then have the opportunity to vote if they want to retain the property.

There will be a fixed period for responding (say 14 days) with anyone not responding in that period being deemed to agree to the sale. This is designed to avoid situations where people are holding up an exit if they are unavailable (or uninterested!).



We expect there to be a vote for exit in most cases, but if, exceptionally, 85% of investors vote to retain the property, it will be kept for at least another year.



It is worth me mentioning (and to gauge people's opinion) that we are considering adding a preliminary step whereby investors are first asked- "Do you want to sell, retain or increase your investment at the end of the fixed term"?

If there are a number of individuals who want to retain an interest, the most efficient exit route may be to sell the property on to them with any spare shares offered to them or the crowd at a fair value price.



If anyone has any opinions on this I'd be grateful to hear them.



The comments regarding the secondary market are great as it’s something we are going to focus on once we have finalised the development of the new platform. This will take the form of a marketplace where investors can specify the price they want to sell their shares for. There will be a fee payable by the seller (2.5%) as there are significant time costs associated with dealing with the paperwork involved in the share transfer within the SPV. Property Moose has been built with the medium term investor in mind so we don't anticipate people using the secondary market unless they have a change in circumstance.

Property Moose itself work with a number of partners who have indicated they may be interested in providing some liquidity to the market if they can acquire shares at around par value.  



Property Moose itself works with a number of partners who have indicated they may be interested in providing some liquidity to the market if they can acquire shares at around par value. We are therefore confident that we should be able to arrange a sale for any investors who need this facility.
We are therefore confident that we should be able to arrange a sale for any investors who need this facility.


If anyone has any other specific questions, please do get in touch using out email on the website (I can't list it here). 

Kind regards

Andrew

Sounds like a good idea, if there is a good return, rent wise, on the property it seems a bit silly to sell just for the sake of it. I appreciate that some will want their capital back but if arrangements can be made to offer their parts to existing owners or new buyers, it seems a winner