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  • Peer to Peer Lending

    The House Crowd

    Dear All, I've overcome the challenge of getting 'activation' and new 'password' for this updated site Huh Thanks for the stimulation...love these icons Tongue
    Anyway, onto serious matters. Has anyone had any experience with / of 'The House Crowd'? As with all financial investments I know that there are inherent risks. My understanding is that this is a relatively new set up using the power of group funds to acquire, renovate and hopefully making & sharing profits from when the property is sold. So all experienced knowledge welcomed.
    Thanks in advance.
    Imani
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    Hi Imani,

    Glad you made it across from the other side! Smile

    (If anyone has any problems, they only have to email NickTadd@mac.com and he will reset your password manually so that you can get easy access).

    We had a discussion about The House Crowd on the old PT but I cannot find it.

    I think we were concerned that it might come under a "collective investment scheme" which means it has to be regulated by the FSA.

    There is a none to favourable review in The Guardian >> here.
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    I love their website (painfully slow though) and like the idea.

    The company was established in December 2011, so are now 7 months old. They currently don't have a Consumer Credit Licence, so am not sure they can legally take funds yet.

    The idea though seems a bit flawed, they are taking monies and investing in BMV properties and then selling them on, this is when you get your return. You have to ask yourself how much value can they add to a property to increase its value and sell the property where it was unsellable previously that the seller had to do it BMV. Not forgetting the OTHER costs other than the purchase.

    You get your return on the sale of the property apparently, Considering its not a sellers market right now - I hope they may take a letting view on properties and return those profits back to investors.

    I invest in Zopa and The Funding Circle, if this new idea works then I'd love to give it a go. Will let you try it out first Wink

    With all this being said, the Directors of the company seem to have had success previously - so I'm optimistic.

    You should read their FAQ and Terms, before considering an investment. I will be.
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    THIS PROPERTY TRIBES ACCOUNT IS NO LONGER USED. DO NOT SEND PRIVATE MESSAGES.

    YOU CAN REACH ME AT BESPOKE FINANCE for HMO Mortgages, Cheap Life Insurance and Limited Company Buy-to-Let on 08009202001

    Adam,

    Frazer Fernhead does not have a successful track record at all! Read the Guardian article.
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    Your missing start of "The Bank Of Dave" Vanessa.

    I had a quick look at the five or more directors and their companies. They mostly all seem good ventures but will have to read the article.

    I had a quick look at the terms, one thing that stood out is they were saying that you can sell your Stake on to someone else. It says then "Consequently, it might be difficult for an investor to realise his investment".. That is pretty much telling that this is high risk and "proper" investors wont buy your Stake off of you.

    I still have fingers crossed though, am a fan of crowd funding.
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    THIS PROPERTY TRIBES ACCOUNT IS NO LONGER USED. DO NOT SEND PRIVATE MESSAGES.

    YOU CAN REACH ME AT BESPOKE FINANCE for HMO Mortgages, Cheap Life Insurance and Limited Company Buy-to-Let on 08009202001

    I watched "the Bank of Dave" while posting on PT! Multi-tasking. Smile

    Yes, I like the idea of crowd funding or micro-financing, but I hope it doesn't contaminate the property industry as the "next big thing". It is unregulated, so anyone can start a scheme and take money and we all know how often that ends in tears. There's no short cut to legitimate wealth - other than winning the lottery, marrying money, or inheriting it - no matter how you dress it up.

    Mind you if you only have £1,000 pounds, why not buy 1,000 houses for £1 as the gurus continue to claim .... ?

    There is already the biggest property ponzi scheme in U.K. history still operating and sucking in funds from all over the world to keep going ... but it will go "pop" at some point, although probably still not for a while. We could call that "the H. Crowd". Wink
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    Hi all, The House Crowd here. Firstly, Adam, thank you for your comments on our website and what we are trying to achieve – it’s always great to hear feedback that we can use and work from. And Imani, thanks to you also for considering us. We hope the following may answer a few of your queries, as well as some of the additional comments we have read above.

    Firstly, in reference to the FSA - they are fully aware of what we do, indeed we are in ongoing correspondence with them. They have reviewed all our paperwork and we have dealt with all of their enquiries to date to their satisfaction.

    From your discussions about the Bank of Dave, it would suggest to me that you are fans of new and innovative approaches to financial issues currently facing the UK. We are too, which is why The House Crowd exists; it also exists thanks to the same legal team which set up Bank of Dave! (So rest assured, some of the brightest legal minds have been behind our business model to ensure what we are saying and doing is feasible and legal).

    Finally, I would always be wary of making a financial decision based on the negativity and opinion of one journalist. If you looked at other coverage we have achieved since our launch, you’ll find the Guardian piece you refer to is a minority opinion, not a majority, and therefore, I doubt that this is a very balanced and fair opinion – but of course, we are all entitled to them!

    We are open and honest about our approach to property investment and as I write this, our first property is in the process of being marketed. Once this sells, I will be happy to report our results to the forum. Until then, we are always happy to discuss your queries and questions so feel free to get in touch.
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    [/i]The House Crowd - Investing Together, Sharing Together
    House Crowd,

    Well done for joining the conversation and welcome to PT. I appreciate your willingness to engage, answer questions, and bring clarity to your offering.

    Please keep us posted on how your first sale goes.
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    Dear All, thanks for contributions to this post and Vanessa thanks for the link to the article....I'll watch "the Bank of Dave" later.
    Good to see that 'The House Crowd' is also a member....indicating that they do care about their reputation Big Grin [Gosh! I'm haveing fun with these icons Rolleyes]
    I suppose what I'm getting from all sources is that there are no guarantees - not even from FSA - and to not invest more than I'm prepared to lose (the risk)....if I do invest. Huh Still a bit of thinking and research to do.
    :heart:Thanks
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    Imani,

    Let's be clear. The FSA never gives guarantees for any financial investment. Even completely regulated entities can suffer losses.

    Adam,

    The idea that someone buys a distressed deal, does it up and sells for a profit is a valid business model that has existed longer than you and your father have been mortgage brokers. It is all about how you buy, and what you spend to do up a property. It can work in a seller's market, a buyer's market and when the market is neutral. The theory if fine. The application will vary based on who the investor is and with the specific property. Sarah Beeney's career is based on following the model successfully and then documenting others who sometimes got it very wrong. Letting the property so the sale happens in a more favorable market climate could be icing on the cake or just a way to sell a refurbished property after it is slightly scuffed up.

    To all,

    The Guardian article is useful as it does focus one's attention. At the same time it is poorly researched. The article concludes with an explanation of Inside Track. Does the journalist understand that Inside Track sold seminars and education? Technically, it did not sell property as there was another company. In an effort to dumb down the article and support a pre-dertermined point of view, the facts were left out.

    I have no connection to The House Crowd. At the same time I would caution anyone who thinks The House Crowd are destine to fail just because the Guardian links them to Inside Track. If the journalists were so good at spotting problems we would not have had a credit crunch. The journalists would be placing their money where the mouth is and they would own everything that was worth owning. Instead, they grind out another article with the minimum of details so that they can sell more papers. The Guardian is a failing business that suffers losses year after year. Some of the time I enjoy the articles as some are well written. Other times, the political agenda overrides reality and we get standard PR fluffed up as solid journalism. Few of the writers could make a living from their investment insight. Fewer still make a living from their ability to write well.

    Do your homework, Dig deep for real facts. Ignore the headlines long enough to really think through what happens when something is not going to plan. Then make a decision.

    Be prepared to suffer losses if you expect a positive return. Risk and reward are bedfellows. There is no risk less investment that has a positive return.
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.

    Some good comments there JC especially on journalism and the risk/reward ratio.

    I'm a complete fan of peer to peer and crowd source lending and a broker and investor of Funding Circle as well as looking to set up my own.

    I'll be honest and say I'm skeptical of it working as The House Crowd are using it; that's not a criticism of them as I don't know enough about them per se to comment just a general observation given the market but as John said money can be made in any market.

    It's all about due diligence and ultimately taking a punt; nothing is without risk.

    Lisa
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    Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com