A new online property investment platform is using crowd-sourcing to fund property development.
Propio has an entry point of £1,000 and claims to be offering returns of up to 20%.
Users can log into the platform and allocate money to specific projects or to a selection of pooled bonds which invest in multiple opportunities. Money is returned when loans are repaid or developers sold.
It offers either debt or equity options, with equity the highest-risk but highest-returning option. It will focus on developments with planning consent to avoid delays.
Parul Scampion, co-founder of Propio, said: “Our fintech platform opens up exciting new avenues of funding for developers keen to share equity with others or whose schemes may not be big enough to excite the major banks who have been told to reign in lending.”
A first scheme in Putney raised £622,000 from 77 investors. Its directors have so far co-invested into the projects listed on the site.
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