CrowdProperty is a marketplace lender, also known as peer-to-peer lending or crowdfunding, that lends finance to SME property developers to build medium density, infill housing — a critical component of solving Australia’s housing affordability crisis.
CrowdProperty raises the funds via diverse sources of capital from institutional, wholesale, and retail investors and SMSFs. Institutional investors include family offices, private credit funds, and superannuation funds.
Security
All CrowdProperty loans are secured by first mortgage, and all projects are put through the company’s rigorous 57-step due diligence process, managed by its in-house property development specialists, to ensure only the highest quality projects are selected for funding.
Returns
Institutional investors can earn up to 10.5% p.a. target income returns plus a service fee for any fund offering underwriting support for all loans.
Retail investors can invest per project from $2,500 (and minimum investments of $500 ongoing) with current projects offering 8.5% pa target income return. These are short term loans with investment terms typically up to 18 months.
Wholesale investors can either invest project by project or in the CrowdProperty Wholesale Partner Fund, a pooled fund diversified against all project loans, offering up to 10.5% pa target income returns and quarterly interest distributions (minimum investment $25,000).
How it works
- SME property developers apply for specialist finance via the CrowdProperty platform.
- CrowdProperty’s in-house team of property development specialists review the project and give an indicative response within 72 hours.
- They then run prospective projects through the proprietary 57-step due diligence process, which typically results in successful funding of approximately four percent of project applications.
- Once a project is approved and accepted, it is launched on the CrowdProperty bespoke online loan management platform for investors to review and pledge against.
- When enough pledges are collected — typically from a range of investors including retail, wholesale, SMSF and institutional — the project is closed, funds are transferred, and the project finance can be drawn down.
- Subsequent phases of the project are funded on the platform providing options for investors seeking shorter terms.
I recently covered how Crowdproperty is Solving Australia’s SDA housing shortage by helping to fill the gap in specialist disability accommodation dwelling.
Fore more, see www.crowdproperty.com.au or get in touch via hello@crowdproperty.com.au.