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La web de Crowdfunding Inmobiliario que facilita
la democratización de las inversiones en Inmuebles
La web de crowdfunding inmobiliario
La web de Crowdfunding Inmobiliario que facilita
la democratización de las inversiones en Inmuebles

ENTREVISTA INMOCROWD: #3 - BETHAN JENKINS, CROWDLORDS.COM

Entrevistas miércoles 3 de junio de 2015


As a crowdfunding platform we felt we had to use crowdfunding to raise the money we needed.

3-bethan-jenkins-co-founder-in-crowdlords-i-think-real-estate-crowdfunding-is-a-superb-way-for-more-people-to-benefit-from-property-in



Today I have the pleasure of speaking with Bethan Jenkins.

Bethan is Co-Founder of CrowdLords ( www.crowdlords.com). CrowdLords, which is a two-sided equity crowdfunding platform for the Buy-to-let market in UK.

She has always had an interest in business and marketing. Her mum set up a business from home when she was young and any money made she put straight into Buy-to-let properties. As a result She has been exposed to the Buy-to-let market from a young age and purchased a Buy-to-let property at 19.

She studied Marketing at Bristol Business School and completed a year in industry at Base One.

 

 

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Hello Bethan, It´s a pleasure to talk to you,

. First, I want to know your opinion about the real estate crowdfunding

I think real estate crowdfunding is a superb way for more people to benefit from property. In the UK especially, it’s become harder and harder for individuals to purchase property, due to rising prices and the hefty mortgage deposits required. Real estate crowdfunding opens up the market to more people.

 

Real estate crowdfunding opens up the market to more people



 

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crowdlords
What is Crowdlords.com exactly?

CrowdLords is an equity based crowdfunding platform for UK residential property.

CrowdLords directly connects people who wish to build and manage a property portfolio (LandLords) or to develop property (Developers) with savers looking for secured investments (Investors).

LandLords and Developers can list a property or project on the CrowdLords platform and raise the funds they need from the crowd of investors. There is no need for a Buy-to-let mortgage, bridging finance or mezzanine debt and the LandLord or Developer defines the financial terms and structure.

Investors can choose from a range of properties listed on the platform to invest in. The investors receive an equity stake in the property for their investment. They can invest from £1,000 per property and receive a share of the income on a quarterly basis and a share of the capital growth at the end of the agreed term. Investors can choose from a range of property types, in different locations, each offering different financial terms to help them diversify and spread their risk.
CrowdLords is an equity based crowdfunding platform for UK residential property.

CrowdLords directly connects people who wish to build and manage a property portfolio (LandLords)

or to develop property (Developers) with savers looking for secured investments (Investors).
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A curious thing being crowdlords.com a crowdfunding real estate platform is that you got funding to launch another crowdfunding platform through seedrs.com , delivering capital and obtaining overfunding. This shows investor confidence in your project. Are you surprised by the result?

As a crowdfunding platform we felt we had to use crowdfunding to raise the money we needed.
We raised our first round in October 2014 and we were so pleased with how quickly we raised the £150k. It was also fantastic being in front of investors who could then become investors in the properties listed on our site.

 

 We raised our first round in October 2014 and we were so pleased with how quickly we raised the £150k



 

And right now you are in a second round of investment on the same platform. Do you feel nervous for these 50 days left? and do you expect to get the same result?

We are nervous. It would be wrong if we weren’t. Second round is always difficult as the concept is not as new or fresh. However, we have progressed as a business and the platform is now live so we hope potential investors will see what we have achieved and see the opportunities ahead.
You never know how it’s going to go but fingers crossed for the same result.
You can visit our fundraising page here: https://www.seedrs.com/startups/crowdlords1

 

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Well, one of the peculiarities of your business is that it is on both sides, to the investor and to the landlord when most of the others are only focused towards the investor, why did you decide to do so?

Being a two-sided model certainly has its challenges. We need to cater for both landlords/developers and investors from a platform point of view, a legal perspective and we need to focus on both in our marketing. However, it was definitely the right decision.

Being a two-sided model means we can scale quicker as a business because we are not restricted by how many properties we can source or how many properties we can manage. It also means we will be able to offer more diversity to our investor base as we will have properties from different locations, of different types and with different financial terms.

There are also challenges that landlords/developers and potential landlords/developers face when looking to build or expand their portfolio. And we felt a two-sided model not only provides an alternative investment channel for investors but it also helps solve these issues.



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The British government unlike the Spanish, has greatly facilitated the growth of Fintech there, what is exactly the FCA and why is it so difficult to have this authorisation?

The FCA (Financial Conduct Authority) ensure that firms adhere to the principles of business, which are fundamental obligations set out in the FCA handbook.
It’s really important that a crowdfunding company operates in this way to ensure they protect themselves, their customers and the market.
The authorisation process is not easy and that’s because the FCA look at all aspects of the business to ensure a company is 100% compliant.

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Do you admit all UK proposals, or only the London area?

We welcome properties or developments from across the entire country. We recognise not all investors are the same and we strive to offer a diverse range of investments to suit all needs. Some locations, such as London, are better suited to deliver capital growth and other areas are more suited to deliver income.

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Your business model has three ways streams: one for listing fee, two for success fee and third for exit fee, the first and the second are clear to me, but could you explain the third?

Of course. We take 10% of any capital growth when the property is sold at the end of the agreed term.

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UK prices are now very attractive for businesses like yours, but are rising very quickly, you do not fear to be able to produce a housing bubble as happened in Spain?

The housing bubble is a very popular topic and a difficult subject to talk about. Who knows, I wish we could predict what’s going to happen! I do feel that because in the UK there is a shortage of housing it does tend to keep house prices high and when they have dropped in the past they have stabilized relatively quickly.

In the UK there is a shortage of housing it does tend to keep house prices high and when they have dropped in the past they have stabilized relatively quickly.



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One of the attractions for developers is that they don’t need prior savings or a mortgage and if protected against UK properties, how this is done there?

A developer or landlord needs to commit a minimum of £5k of their own money to a property or project. They receive equity in return for their commitment like the other investors. They then raise the finance they require from the crowd of investors. The amount they raise could include refurbishment costs or build costs.

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You articulate each investment opportunity with a SPV, it has special characteristics to do so?

Yes, we set up an SPV (Special Purpose Vehicle) for each property. Investors and the landlord/developer have shares in the SPV, which owns the property.

We appoint an Independent Director to each SPV and their role is to ensure the investors are protected. The landlord is a director of the SPV but does not have direct access to the bank account. The landlords submit expense,s which are managed, along with the full accounts, by our accounting partners KPMG.

 

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Do you think the global financial crisis has led to the development of real estate crowdfunding or not?

I think it has certainly assisted the development of crowdfunding. The need for alternative investment was driven by the low return investors were receiving on their savings and the appetite to try something new which could bring them higher returns. I think the openness to try something new has also come about as a result of the trust for banks being tarnished.

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Spain is one of the countries where the housing bubble burst harder, do you think the real estate crowdfunding could be a way to recover the market?

The great thing about crowdfunding is that it enables people to invest small amounts but also invest in more than one property meaning they can spread their risk. Crowdfunding could certainly be a way for people to slowly start trusting and gaining more interest in property once again.

 

  Crowdfunding could certainly be a way for people to slowly start trusting and gaining more interest in property once again



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Since @inmocrowd good luck in your new business

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Publicado por
Miguel García
CEO de InmoCrowd
Especialista en crowdfunding inmobiliario

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