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Hi everyone, I have been buy to let market using mortgage for a few years. Now I have some savings and am able to look at other options. I am not sure other options, e.g. cash buy, corwdfunding, are better than my current way. I would like to know your opinions and if there are other better ways than what i know. 1. My current way - apply 80% LTV mortgage buy to let, either 2 or 5 years, rent the property out to provide me monthly income. If the property price increased, i would sell it for some capital gain income or i can keep it for even longer term hoping it will increase more. 2. Cash buy - if the property is £150k market value, sometimes cash buyer could negotiate a good price as the seller urgently need cash. The property could be purchased as £120k or lower. It means after cash buy, i can refinace/remortgage it to recycle the cash. There are some addtional payment, e.g. stamp duty, socilitor fees, etc, but not much. The cash is in theory constantly recycled. 3. Crowdfunding - recently I heard this term and it can provide fixed return of 8-12% in 6-18months, depending on projects. One example, www.sourced.co, they only provide property investment project. Have anyone used them before? It sounds low risk and reasonble return. However, I know that it can't be true and any investment has risks. Anyone has used such method and would like to share your opinions? Note: There are some pros and cons using ltd company, however, this is not part of the question. The above 3 ways can apply to both personal and ltd company. I would like to know your opinions on which way produces higher return (obviously higher risk i assume) and if there are other ways. It could end up with similar return and similar risks. Thanks everyone in advance. Dawei
Hi All, New to this forum and starting out my property investing journey - Interested in professional B2Ls in Birmingham going with a BRRR strategy as well as looking at small ground up developments in London and SE for bespoke (think standalone garages, small plots of land with planning potential which I flip at auction once planning granted or develop myself). Keen to experience an auction so will get myself down to one after lockdown! Quick question about those who have purchased properties at auction - I note the benefit of having a survey done however the cost being potentially prohibitive to 1st time investors. Do you think there is scope for a service where auction bidders could share the cost of a building survey? Surely it would help with price discovery and also lower the barriers to investing at auction. Interested to know the forum's thoughts. Thanks
Hi all, does anyone have any feedback or experience on using crowdfunding as a viable source of finance for property acquisition both in the UK or internationally? Any advice would be more than welcome.
Good day, I am an entry level property investor from South Africa and find your podcasts and discussions very informative. Due to the fluctuation of our local currency in South Africa, any off-shore investment is very enticing, even if it's simply as a hedge:-) I have recently started to look at crowd funding platforms and listen to your podcast regarding this topic. I have also done a lot of research on risk management should one consider investing in one of these platforms and I have created a little list of minimum requirements for myself, which I would like to share: 1. How long has the platform existed and are any public reviews available? 2. Is the company and platform regulated and by who? 3. What kind of insurance and protection do the investors receive and from whom? 4. Is ther transparancy regarding the costs and net amounts receivable? 5. What are the dividend yields? 6. How many shares (%) can an individual shareholder own in one SPV? 7. Is a premature exit possible? 8. Who are the financial backers? 9. What happens if the platform and/or company falls in fonacial distress? 10. What are the minimum investment amounts? 11. On which criterea are properties picked and are these studies based on 3rd party valuations by reputable entities? 12. Are regular valuations done and by whom? 13. What is the history of dividends paid? 14. Is provision made for unforseen circumstances, like rental voids, faulty equipment, etc? I think that property crowdfunding has evolved since your podcast and I believe that this is worth persuing, but I am very interested to here what other, more sophisticated investors have to say. Regards Jacques