CrowdProperty Review

CrowdProperty

4.4

RATE OF RETURN

4.5/5

OVERALL SAFETY

4.5/5

ASSET SECURITY

4.5/5

TIME IN BUSINESS

4.0/5

LAZY INVESTOR RATING

4.5/5

PROS 👍

  • Great Returns - up to 8% on secured assets with low LTV's
  • Good History - 6+ years in the P2P industry
  • Good Loan Flow- good number of high quality loans - good diversification

Cons 👎

  • Loans Funded Fast - can be difficult to get in to self-select loans, because they are so in demand.
  • No Secondary Market - once you enter a loan, you're in for the 12- 24 month term.
  • Auto-Investing Cash Drag - auto-invest portfolio allows maximum 20% of portfolio value to be lent out. So there could be some cash drag at first.

My Personal Lending Experiences & Actual Investment Results Published Monthly Below in my CrowdProperty Review

What is CrowdProperty?

CrowdProperty (not to be confused with Property Crowd, which is a totally different company) is a Peer to Peer lender based in the United Kingdom specializing in property secured bridging & development loans with low LTV’s.

All loans have 1st legal charge on the assets being loaned against. Meaning should the loan default, CrowdProperty’s investors are first to get capital repaid once the asset is sold. Before other lenders who may have extended credit with a lower legal charge.

Loans also all have LTV’s less than 70% of the starting value of the development site. This means in the event of a default, the site in question would only need to sell at 70% of it’s valuation in order to pay back investors funds from the loan. 

CrowdProperty is laser-focused on low-risk loans, and benefits from a lending team with over 100 years of lending experience. Loans are vetted very thoroughly, evidenced by the fact that to date, all loans have been fully repaid. No lender has lost money in the time they have been in business. You can check current statistics here.

Moreover, founders of the company have a wealth of experience in property development, and are quite capable and willing to step in and manage a development to completion and sale, should that be necessary.

Loan flow is very reasonable for loans of this quality, issuing between 5 & 10 loans per month. This means an investor will be able to get well diversified over time and also should be able to distribute a good amount of capital reasonably quickly. 

Easi-Info Table Obi 100x100

Easy-Info Table©– CrowdProperty Review

Overall Rating*:4.4 out of 5 stars (4.4 / 5)
Who can invest:Small UK Flag e1536500725428  Small Euro Flag e1536500707966
Loan Currencies:£  GBP 50 e1559643199723
Estimated Return:6% - 8%
Target Annual Return
(Platform Number):
8%
My Calculated XIRR:pubchart%3Foid%3D950165626%26format%3Dimage
My Current Investment:
(click to see amount in £)
See My Investment £
Risk Rating*:4/10 -Low-Medium
4 out of 10 stars
Early Exit:No.
Min. Investment:£500
Deposit Funds:By Bank Transfer

Usually same day.
Auto-Invest:Yes
Manual Invest:Yes
Lending To:Agreements directly with borrowers
Loan Types:Property Bridging & Development Loans
Default Rates:All Loans repaid so far.
Loans Amortize:Some do but not all.
Loan Security:Yes, all loans property secured
with low LTV's & 1st legal charge.
Provision Fund:No
Time to Invest:Manual - depends on investor.
Auto-Invest - medium.
Time to Mange:Manual - Depends on investor.
Auto-Invest - low.
Lender Fees:No.
Payments Received:Depending on individual loan.
See review.
Amount Lent:£150m
Number of Investors:15,000+
Loan/Dflt Stats:All loans repaid so far.
Current Statistics
Regulated:Yes: FCA
Location:Birmingham, UK   Small UK Flag e1536500725428
Launched:November 2014
Website:www.crowdproperty.com
Email:[email protected]
Telephone:0020 3012 0161 (UK)
IFISA/IRA:Yes. ISA
Cashback**:None Currently
Check For New Offers >>
How to Sign Up**:Sign Up Here!

My Latest Investment Experiences…..

The initial research I did when the platform was launched made me believe they would be a hidden gem in the Peer to Peer lending market, and now, years later, it appears to have been correct. Offering above average returns for safer, medium term loans seems to be a winner all round.

Since before writing this CrowdProperty review, and to date, my lending experience continues to be excellent. CrowdProperty thrived through the COVID19 climate. Most projects were paid back on time. There were a few delays of course, but most loans appear to be back to normal now. No losses for investors whatsoever.

As CrowdProperty offer property secured development loans, all with first legal charge and reasonable LTV’s, it showed through the pandemic (when other platforms were struggling with defaults), just how good they were. I continue to feel like the loans they have written are well vetted, and are some of the safer development loans available in the Peer to Peer lending space.

Transparency is also something I am very impressed with. Loan details are typically available at least 1 day before the loan becomes live, sometimes earlier. They do an online webinar a day or so before each loan is released. This allows for a deep-dive in to the loan detail. As well as the chance for investors to ask any questions they may have. 

If there is one problem (if you can refer to it as a “problem”), it’s that CrowdProperty loans are now filling up faster than ever! I used to complain (before the pandemic hit) that you had to be fast because loans filled up in a few minutes. Now they fill up in seconds. That’s great for the stability of the CrowdProperty platform. For us lenders however, it means we have to be nimble to get any substantial investment in a loan. There are a lot of investors trying to get into loans. It’s not a terrible problem to have as a Peer to Peer lender.

My latest lending experiences can always be found in my Monthly Portfolio Updates.

Visit The CrowdProperty Website

My CrowdProperty Investment Strategy.

My strategy since the beginning with CrowdProperty is to invest £500 into almost every loan they have, for good diversification. If the LTV is lower than 50%, and it’s a tranche 1, I’ll invest £1000. I do a little due diligence on each loan before it goes live. Once in a while I see something I don’t like the look of and I don’t invest in that particular loan. I’ll often look closely at higher level (above 2) tranches and pass over some of them at times. Overall though, that happens very infrequently so it’s pretty much £500 or £1000 into each loan.

CrowdProperty Return Charts

(Click on image for interactive chart)

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Detailed Overview – CrowdProperty Review

When Did CrowdProperty Launch? History

CrowdProperty’s Peer to Peer platform was founded in November 2014. As of the date of this CrowdProperty review, they have lent over £125m on properties with overall values of over £256m. They currently have over 15,000 investors all of whom have been paid back on time. You can see current statistics here.

CrowdProperty is quite unique in that it has built relationships with a large market of property developers to which it has direct, exclusive access to loans from. This means it doesn’t have to pay loan brokerage fees which can be very expensive so overhead and loan costs are kept down for the platform, borrower and investor.

In 2018 the platform just about broke even, and by 2020 they were showing profitability. This adds to the stability of the company considering most Peer to Peer lenders are still operating at a large loss.

Are CrowdProperty Regulated?

CrowdProperty are authorised & regulated by the UK’s Financial Conduct Authority (FCA) with full permissions under FCA number 723959  

They gained FCA permissions in September, 2017.

It’s important to note in this CrowdProperty review that the FCA is not the same as the FSCS (Financial Services Compensation Scheme), so capital is not protected as it would be in a bank.

CrowdProperty FCA Approval Screenshot

How Many Loans Do CrowdProperty Offer?

One of the things I really like about the CrowdProperty website is the ability to scroll down and see their loan pipeline. This can change, but it gives an idea of what loans are coming, and more importantly, when. So you can plan to be at your computer to grab a piece of them.

CrowdProperty Loans Screenshot 1 - Investments Update September 2021

Who are we lending to with CrowdProperty?

CrowdProperty is a true Peer to Peer platform.  Lenders are lending directly to borrowers who are typically very experienced property developers. Many of whom the company knows & trusts as they are return clients who have taken out loans for other developments.

Loan agreements are directly between the lender (investor) and the borrower. The platform just acts as a middle man, managing loans, payments and debt collection etc. The platform does add an extra layer of safety which needs to be mentioned in my CrowdProperty review; their ability to take over and manage projects to completion and sale, should it be required. This is much better than having to repossess a defaulted property which can take years to gain ownership over and dispose of. Instead developments could be completed and sold in a matter of weeks or months.

Loan Security – Is CrowdProperty Safe?

I consider CrowdProperty to be relatively safe (relative to other Peer to Peer lenders offering bridging and development loans). All loans are property secured with low LTV’s and 1st legal charge. They provide very detailed information about their loans, including detailed descriptions of the deal and valuations of assets etc. to help you make your own lending decisions. All documents associated with the valuation. Plans, maps and multiple photographs of everything to do with the loan are freely available. Remember though; this is Peer to Peer lending and nothing is 100% safe. Economics can change at any time as can borrowers financial situations.

CrowdProperty Loan Detail 3
CrowdProperty Loan Detail 4
CrowdProperty Loan Detail 1
CrowdProperty Loan Detail 2

Also available is a copy of the Pre-launch webinar if you were unable to attend it live. There are many launch videos freely available on YouTube if you search for “CrowdProperty Video”.

Do CrowdProperty Loans Amortize?

Some loans amortize, meaning you receive capital and interest payments every month. Many loans are interest only though, and many are all capital and interest returned at the end of the loan term. Nothing on a month-to-month payment schedule.

This is quite common with shorter term bridging & development loans as it allows the developer to focus on finishing the project without having to find the capital for a large loan repayment each month. It is one of the reasons these loans, although safer and more secure than most, still pay the higher interest rates.

When loans amortize, it typically reduces loan risk compared to a non-amortizing loan, in which nothing is received until the end of the loan period, or only interest is received monthly and then the capital repaid at the end of the loan period.

Does CrowdProperty have a Provision Fund?

There is no provision fund available with the platform as of the date of this CrowdProperty review.

You are relying on their ability to seek out safe profitable loans, and your due-diligence on each loan. Asset security on the loans are very good though so even if a loan were to default, chances are you would still get your money back eventually.

Does CrowdProperty Offer a Tax Efficient ISA Account?

While researching this CrowdProperty review, I found that the CrowdProperty ISA (Innovative Finance ISA) was launched in February 2018 for UK residents enabling tax free investments for Peer to Peer lenders.

CrowdProperty ISA Screenshot - CrowdProperty Review

Does CrowdProperty offer Auto-Invest?

In this CrowdProperty review, we can see that loans can be invested into automatically if you are not able to sit glued to your computer for each loan release. I have yet to invest through auto-invest but it is quite simple to set up. You just deposit your capital into the auto-invest portfolio, and tell it how much to lend into each project.

A nice feature is; you can choose to “skip next project” which allows you to do due diligence on each project before auto-investing. So if you don’t like it, you can skip it.

The only thing I’m not fond of with auto-invest is that it will only invest up to a maximum of 20% or your overall portfolio value. This is not a problem once you get a few loans under your belt, but at first it means you might see a bit of cash drag with auto-invest.

I chose to do select-invest loans at first, then I’ll switch to auto-invest once I get a few loans under my belt.

CrowdProperty Autoinvest Screenshot - CrowdProperty Review

How does CrowdProperty work?

How Can I Signup with CrowdProperty?

While researching my CrowdProperty review, I found that opening an account is fairly easy. Just the usual ID and anti-money laundering checks.

You’ll need to send them a copy of your passport or driving license, and a utility bill or bank statement less than 3 months old.

Any resident of the UK or EU who is 18 years old or over can signup with CrowdProperty if they can pass the ID & anti-money laundering checks.

A UK bank account is also required to signup. If you don’t have a UK bank account, see my Wise review as their Borderless Account might help. 

CrowdProperty Signup Screenshot 1 - CrowdProperty Review
CrowdProperty Signup Screenshot 3 - CrowdProperty Review

How Can I Make Deposits & Withdrawals with CrowdProperty?

Deposits are made by bank transfer from a UK bank.

Typically deposits will show up in your account the same or next working day.

Withdrawals are directly to a UK bank and can typically take 1 – 2 business  days.

Deposit Funds Screenshot - CrowdProperty Review
CrowdProperty Widthdraw Funds Screenshot - CrowdProperty Review

How Long Does it Take to Invest with CrowdProperty?

They have both manual self-select and auto-invest portfolios available. If investing manually, loans must be selected and invested into individually. Therefore the amount of time to become invested is purely based on how many loans you want to invest in, and how much capital you want to put into each loan. It will also be based on if you are able to sit by your computer when a loan goes live. And also how quickly you can make a pledge. Loans go in a matter of minutes as mentioned previously.

Something interesting to note here is that you can pledge to a loan without needing to have the capital in your account. Sometime before the loan goes live, CrowdProperty will then contact you and request the funds be deposited into your lending account to cover the pledge. This enables investors to be able to invest in loans quickly without needing a lot of cash sat about in their lending account waiting for loans to become live.

Manual investment is just a case of going to the “View Live Projects” screen, then making a pledge. The screenshot below only shows a fully funded project as I have not managed to take a screenshot of a live loan yet (I’m too busy trying to get invested into them). I’ll see if I can snap one moving forward.

CrowdProperty Live Loans Screenshot 2
CrowdProperty Live Loans Screenshot 1

How Can I Sell Loans and Withdraw Capital from CrowdProperty?

There is no CrowdProperty secondary market, so once you have lent out capital, you will need to stay the full loan term before you are able to withdraw it. The good news is that most loans are less than 24 months, and many are only 12-14 months, so you won’t need to wait too long.

How are Loans Diversified with CrowdProperty?

With self-select loans, diversification is a manual process so you decide how much you pledge for each loan. With auto-invest, you can set the maximum amount you want to put into a single loan. So you can diversify automatically as much as you choose.

How Easy is the CrowdPropery Website to Use?

CrowdProperty’s website looks complicated at first but is relativity easy to use. Once you take the time to look around and study it, everything makes sense and is easy to access.

All of the account information is right there in front of you on the main account screen all laid out in a manner which is self explanatory.

CrowdProperty Main Account Screenshot CrowdProperty Review

Summary – CrowdProperty Review

Overall I think CrowdProperty’s loans are a great option for diversification of any investment portfolio. With high rates of return achievable for well secured, safer bridging and development loans. All of CrowdProperty’s loans are secured by property, typically with good LTV’s, and always below 70% with 1st legal charge. So even if a loan were to default, you would likely still get your capital back, but it may take a while.

They made it through the pandemic stronger than ever, and with zero losses to investors. Loan flow is good enough to get well diversified, and it is possible to get into almost every loan, but you need to be at your computer when the loan goes live unless you use auto-invest.

I hope you found my CrowdProperty Review useful. CrowdProperty are already a large part of my Peer to Peer lending portfolio, and I’ll continue to increase my investment with them as new loans are issued.

Points to Consider Before Investing

Thumbs Up Points

ThumbsUp1
  • Great Returns – returns of up to 8% on secured loans with good LTV’s is rare these days.
  • Due Diligence – borrower screening is second to none, evidenced by all loans being repaid and no investor losing a penny in 5+ years and almost 700 loans.
  • Good Loan Flow– good number of loans for this quality coming through per month which means it shouldn’t take long to get capital lent out with reasonable diversification.
  • Good History – 6+ years in the P2P industry is considered a long time.
  • Company Profitable – profitability is a good sign, and adds to the safety of investments.
  • Tax Efficient Innovative Finance ISA (IFISA) – the CrowdProperty ISA is available for tax efficient investing.
  • Financial Conduct Authority – (FCA) Regulated.

Thumbs Down Points

bad 157437 1280
  • Loans Funded Fast – can be difficult to get in to self-select loans. This is actually a good point in disguise for the company; many investors know how good the loans are and trying to get in. For new investors though, it can be difficult to get invested if you’re not sat by your computer and on the ball when a new loan goes live.
  • No Secondary Market – once you enter a loan, you’re in for the term. Typically loans are 12-24 months though so just medium term to wait.
  • Auto-Investing Cash Drag – auto-invest portfolio allows maximum 20% of portfolio value to be lent out. So there could be some cash drag at first.

Visit The Crowdproperty Website

Obvious Investor Risk Rating*

4 out of 10 stars4/10 – Low-Medium

Risk Low Traffic Light

Is CrowdProperty Safe? I consider them to be in the low to middle-low area of the risk scale.

Loans are property asset secured with low LTV’s, and the company has a good trading history. All loans have been repaid thus far, and no investor has lost money. The company is at break-even and staff have over 100 years combined experience in the property bridging and development arena. They also made it through the COVID pandemic relatively unscathed, so they probably deserve an even better rating. 

Who Can Invest with CrowdProperty

Small UK Flag e1536500725428
Small_Euro_Flag

UK and EU residents with a U.K. bank account can invest with CrowdProperty. Contact them for further information.

CrowdProperty Cashback Offers & Signup Links**

No CrowdProperty Cashback Offers Currently.

Check for New CrowdProperty Cashback Offers >>

Signup for CrowdProperty Standard Account >>

Open CrowdProperty ISA >>

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CrowdProperty

4.4

RATE OF RETURN

4.5/5

OVERALL SAFETY

4.5/5

ASSET SECURITY

4.5/5

TIME IN BUSINESS

4.0/5

LAZY INVESTOR RATING

4.5/5

PROS 👍

  • Great Returns – up to 8% on secured assets with low LTV's
  • Good History – 6+ years in the P2P industry
  • Good Loan Flow- good number of high quality loans – good diversification

Cons 👎

  • Loans Funded Fast – can be difficult to get in to self-select loans, because they are so in demand.
  • No Secondary Market – once you enter a loan, you're in for the 12- 24 month term.
  • Auto-Investing Cash Drag – auto-invest portfolio allows maximum 20% of portfolio value to be lent out. So there could be some cash drag at first.

Disclaimers:

This page is presented for informational purposes only. I am not a Financial Adviser and therefore not qualified to give financial advice. Please do your own research and make your own investment decisions. Do not make investment decisions based solely on the information presented on this website.

*   My opinions, reviews, star ratings and risk ratings are based on my personal investing experience with the company being reviewed. These ratings are personal opinions and are subjective. 

**  Some of the links on this website are affiliate referral links. When you click on these links, I can sometimes receive a commission, at absolutely no cost to you. This helps me to continue to offer new reviews & monthly portfolio updates here on my website. I don’t receive commissions from all platforms and it has no effect on my ongoing opinions on investments & investment platforms. Income from my investments and capital preservation are my main motivations.

Platforms reviewed on this website I am currently investing with, or I have invested with in the past. You can see with full transparency on my Portfolio Returns page which assets & platforms I am invested with (or have previously been invested with) at any point in time. I am not paid a fee by any of the companies to write reviews, so the reviews are unbiased and purely based on my own personal experiences.

Please read my full website Disclaimer before making investment decisions.

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