Peer-to-peer lending platforms use a range of approaches to protect their investors’ loans, including different levels of security, expertise and due diligence. CrowdProperty has developed an industry-leading, three-tier security system, The CrowdProperty Shield, which has proved to be so effective that CrowdProperty has an impressive 100% capital and interest pay back track record. The Shield is founded on meticulously following an exact three-tier process, with every project proposed to the company:
Rigorous Due Diligence
This ensures only the most secure and profitable projects are launched on the CrowdProperty platform
In-house property experts thoroughly assess each project proposal. In addition, they scrutinise the developer, and any of their partners’, track record. Only the most promising projects by the most experienced developers will receive an informal offer.
CrowdProperty will only work up to certain loan-to-value and loan to cost percentages, and each project must meet a 25% profit-on-cost criteria. For more information please refer to the company’s risk statement.
The Royal Institute of Chartered Surveyors (RICS) - the world’s leading professional body for standards in property and construction - undertakes an independent evaluation to confirm the project figures. Only if a borrower’s projected costs and valuation are confirmed by a RICS valuer is a formal loan offer made to the developer.
1st charge security
The ultimate level of legal security gives CrowdProperty the safest fall-back position on all projects
‘1st legal charge’ gives CrowdProperty the legal right to take ownership of a property in the unlikely event that a property professional defaults on their loan repayments.
We take 1st legal charge on every project listed on our platform because it gives us all the rights that a mortgage company holds and provides the highest level of non-negotiable security to ensure investors’ funds are safe.
It means if a borrower defaults, the company’s team of property experts can take over the project, analyse all options and chose the best approach for completion of the project so that loans are repaid.
On hand, or hands-on, experts oversee and ensure the success of all projects
In-house property experts work in partnership with borrowers at every stage, of their project until successful completion.
With 100 years’ of hands-on property expertise between them, CrowdProperty’s senior experts oversee and provide timely observations about possible issues that might impact on each individual project’s progress, so helping even experienced developers to avoid the many pitfalls that can arise.
If a developer gets into serious difficulty, however, the CrowdProperty team would themselves take over the project on behalf of investors , assess all current factors - market indicators, the condition of the property; level of debt etc. – analyse all possible options and then chose the best course of action to recover lenders’ capital and interest