An ideal investment is the one that yields a high interest rate over a short space of time. Unfortunately, these investment options are not exactly a dime a dozen. Traditional investments, even something as simple as an ISA, often force people to commit their money over a long period of time to generate a significant return. What’s more, while some of these investments are tax-free, they are not always risk-free.
This is ultimately why short term peer to peer lending, using property as security, is a very attractive investment option. Unlike with traditional property crowdfunding, you don’t need to wait for the majority of investors to decide to sell in order to exit the investment.
When we launched The House Crowd in 2011, it was the first property crowdfunding platform in the world. We have offered peer to peer secured lending since 2015. We are FCA accredited to provide P2P secured lending. This ensures a high level of transparency and a legal obligation to be upfront about all risks involved in P2P investing. To date, we have raised £70m for developers and businesses, and have never lost a penny. Our bridging finance team have experienced ‘bad debt’ on a few occasions, but no capital has ever been lost. Any ‘late’ redemption of loans is only late with our consent.