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Post by shadoh on May 15, 2015 12:01:20 GMT
What do you all think of their concept?
they source a property below market value, agree a price, seek funding from investors who purchase the property at the reduced price. the funding/price includes property mouses' 5% finders fee. (of the purchase price).
then the property is rented for 1 or 2 years, and the investors benefit from the income, after management fees of 10% +VAT of the rent. the investor enjoys a net yield of approx 6%
then the property is reviewed and if sold, investors benefit from capital gain, and property mouse charge 15% of capital gain.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 15, 2015 12:35:28 GMT
What do you all think of their concept? they source a property below market value, agree a price, seek funding from investors who purchase the property at the reduced price. the funding/price includes property mouses' 5% finders fee. (of the purchase price). then the property is rented for 1 or 2 years, and the investors benefit from the income, after management fees of 10% +VAT of the rent. the investor enjoys a net yield of approx 6% then the property is reviewed and if sold, investors benefit from capital gain, and property mouse charge 15% of capital gain. I feel they are a small operation and not sure that there is a market for their microscale offerings, though their MD is a bit of a grand fromage. I suspect they will quickly be taken over by their larger rival Property Moose! 
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Post by shadoh on May 15, 2015 12:42:32 GMT
hhaha
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,315
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Post by ilmoro on May 15, 2015 12:52:01 GMT
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mikes1531
Member of DD Central
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Post by mikes1531 on May 15, 2015 13:35:59 GMT
What do you all think of their concept? they source a property below market value, agree a price, seek funding from investors who purchase the property at the reduced price. the funding/price includes property mouses' 5% finders fee. (of the purchase price). then the property is rented for 1 or 2 years, and the investors benefit from the income, after management fees of 10% +VAT of the rent. the investor enjoys a net yield of approx 6% then the property is reviewed and if sold, investors benefit from capital gain, and property mouse charge 15% of capital gain. Sounds like PM are a similar proposition to The House Crowd. IIRC, THC differences from the above are... - THC started out with 1-2 year holds but have shifted away from them. Most of their recent projects don't consider selling until after 5 years and then only if a majority of the investors want to do that.
- THC properties often need a fair amount of refurbishment before they're rented. PM's 'below market' properties may be in a similar condition.
- THC income all seems to come at sale time. They don't charge a management fee during the rental period, but they generally take 25% of the total profit (including from rentals) upon sale. I suspect some of the set-up costs are income to THC, but it's certainly not clear like PM's 5% finder's fee.
- THC projects are set up as individual companies, investor are shareholders, and surplus income from rentals is paid out as dividends. AFAIK, for most investors, taxation is lower on dividends than on interest.
- It's possible to sell shares in THC projects, but it probably requires THC's help to find a buyer, and the process isn't quick or free. So far, opportunities to buy shares being sold by other investors have been pretty rare.
In the interests of full disclosure... I've invested in a number of THC projects, and I bought a share of THC itself when they had a fundraising round last year.
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Post by shadoh on May 15, 2015 13:46:41 GMT
IMHO, great for the platform but not so great for investor if there were voids, repairs,etc.
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mikes1531
Member of DD Central
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Post by mikes1531 on May 15, 2015 14:34:05 GMT
IMHO, great for the platform but not so great for investor if there were voids, repairs,etc. That would affect any equity -- as opposed to lending -- investment. So you have to look at the financial forecasts reasonably carefully. If the equity platform estimates don't include an adequate amount of those, you have to adjust the numbers yourself before deciding whether the investment is for you.
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webwiz
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Post by webwiz on May 15, 2015 17:48:12 GMT
PM only make serious money if there is a substantial capital gain, which seems fair. If they are competent landlords and property developers investors should do well. Only time will tell. I have several thou with them spread over 7 properties. I will increase this as and when I gain reassurance on these points and see the income stream from rentals.
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paulgul
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Post by paulgul on May 16, 2015 19:49:24 GMT
I hope their ability of buying properties is better than their ability to read a calender - I've just downloaded a share certificate from them and its signed and dated by their director on April 31st 2015  |
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Post by propertymoose on May 18, 2015 11:44:02 GMT
Hi all Thanks everyone for the posts about PropertyMoose! I think our members and followers are doing a great job of answering any questions or comments but if I can help with anything specific please do get in touch. I don't want to get into discussions on the comparables between us and our competitors but there are now some good reviews in the market about us and THC. Our latest review is here - moneygrower.co.uk/2015/05/property-moose-a-review-of-the-new-property-crowdfunding-platform/ If the writer is reading this then thank you for the review! And PaulGul - you'll have an updated share certificate in your account very soon.  The system is being automated in the next batch of development so this shouldn't happen again! Kind regards Andrew |
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The system is being automated in the next batch of development so this shouldn't happen again!