Turning Property Joint Ventures into Crowd Ventures
For many small or specialist developers it is the availability of development capital that limits either the size, or the number of developments they are able to do at any one time.
Many rely on a small number of High Net Worth individuals to provide the development funding they need, in the form of property joint ventures, to be able to secure the senior debt. But this can be limiting. They might have all their resources deployed already, or they simply might not have, or wish to commit, adequate funds to support larger developments.
CrowdLords enables you to turn your property joint ventures into Crowd Ventures to supplement your current sources of capital. By pitching your project to a large and diverse pool of investors you can significantly increase your capacity and grow your business
A range of residential developments
Our platform can be used by experienced developers to source development capital for a variety of residential property developments. It is preferable, but not essential, that planning permission is in place already:
Properties being developed for sale either as a whole or in units
Offices, pubs or any existing building being converted for residential use
Properties being developed to be rented on completion rather than sold.
The Equity Model
CrowdLords is an equity based crowdfunding platform where Investors have a direct shareholding in an SPV (Special Purpose Vehicle) established with the sole purpose of carrying out the development.
As the Developer, you hold a different class of shares in the SPV and it is the different classes of share that define how profits are distributed at the end of the project.
CrowdLords provides all the legal and financial frameworks and facilitates ongoing communications between you and your investors. We also oversee the distribution of profits at the end of the project.
All Investors, LandLords and Developers are required by the FCA to register and be approved on our platform.
After that, the first stage is for us to meet to discuss your development, your financial needs and the types of Investors you’re looking to attract.
After reviewing the development plans, visiting the site and carrying out our assessment, we prepare the development listing for you. Once approved, we make it available on the platform and start promoting it to our Investor base.
Once the required funds have been raised we handle the legal and financial process, including appointing a QS and managing the release of funds and at the end of the project, the distribution of profits to shareholders.