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  • Peer to Peer Lending

    Property crowdfunding - how to reduce risk?

    I tried several investment tools and am thinking about property crowdfunding now. Got any advice on where I should start? I am new to the whole concept.

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    What do you mean exactly? Crowdfunding to raise capital to buy a property?

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    Hi Jessica,

    Are you looking to lend money or raise money for a property deal via this route?

    I suggest that you sit down with a cuppa and read all the threads in our Peer to Peer lending tribe.

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    Lender - Don't do it, put your money somewhere much safer

    Borrower - Don't do it, risking other people's hard earned money on speculation will ruin your reputation when it goes belly up

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    property crowdfunding already reduces the risks in the original idea which says that you can invest small money in several projects with other investors. But you can reduce risks even more if you choose the property platform which offers properties in different countries. You can start by searching such property crowdfunding platforms online.

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    But you can reduce risks even more if you choose the property platform which offers properties in different countries. 

    Surely that INCREASES risk.

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    I totally agree. Going to experiment and invest in different countries.

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    I also like the idea of investing in different countries. I know a property crowdfunding platform which allows investments in several countries around Europe. They are called Realty bundles realtybundles.ua. Look if interested.

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    Just go right ahead if you have money to lose.

    If you invest in one of these schemes in the UK and the project goes belly up you will still have some chance of getting some money back. If it goes belly up abroad, you can kiss it goodbye forever.

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    IF you wish to go into P2P crowdfunding as an investment recognise that....

    - almost all are unregulated:

    - the risks are higher...

    -  IMHO investing through, say, 3 separate lenders may help.....

    - except if the economy as a whole goes t*ts up, which with this bunch of clowns pretending to be in charge of Br*x*t seems quite likely.

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    P2P is nothing more than Sub- Prime equity lending.

    Many projects I have looked at are based on a LTV close to 75% of open market value and in the event of a forced sale the 25% meat in the game would quickly disappear.

    With property values going south in most areas I would not be comfortable investing in any project lending over 40% LTV

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