Property investment platform?

[ReverendCounter]

Any mileage in this property development investment idea? This is based on the assumption that property gives a better ROI compared to saving in your average savings account.

Some kind of online platform would show properties around the world which are available to be purchased. Individual small investors buy a small percentage of the property. Once the purchase price is met, the the property is bought and handed over to a management company who take care of the rental and maintenance on a long term basis.

The idea is that an individual in any country can invest in property anywhere in the world and get a decent long term return (or al least, better than savings rates).

Does such a mechanism already exist?

[48k]

ReverendCounter said:

Some kind of online platform would show properties around the world which are available to be purchased. Individual small investors buy a small percentage of the property. Once the purchase price is met, the the property is bought and handed over to a management company who take care of the rental and maintenance on a long term basis.

First obvious problem I can see is properties getting sold before enough investors have been rounded up to raise 100% of the purchase price.

If the business can't buy the properties itself but is relying attracting investors in order to buy the properties, it's very quickly going to grind to a halt - if it even manages to get off the ground in the first place that is.

[GibsonLP]

PropertyPartner.co does exactly this.

I've used them for a few years to varying degrees of success.

[ReverendCounter]

48k said:

First obvious problem I can see is properties getting sold before enough investors have been rounded up to raise 100% of the purchase price.

Ah, I see that now it's been pointed out. Seems GibsonLP's suggestion must work on a slightly different basis. Interesting to see that there is something out there - the question was provoked by something I saw on Seedrs so thought I'd ask here.

Thanks for the comments.

[kiethton]

Why not look at a REIT?

As far larger vehicles they get economies of scale and get better margins as a result. Something like the PRS REIT or Grainger would do the same thing?

[ReverendCounter]

To be honest I'm not looking to invest - I just wanted to share an idea (as usual, not quite as original as hoped).

[48k]

ReverendCounter said:

48k said:

First obvious problem I can see is properties getting sold before enough investors have been rounded up to raise 100% of the purchase price.

Ah, I see that now it's been pointed out. Seems GibsonLP's suggestion must work on a slightly different basis. Interesting to see that there is something out there - the question was provoked by something I saw on Seedrs so thought I'd ask here.

Thanks for the comments.

The difference is that Property Partners buy properties using at least 50% LTV mortgages and they clearly have enough working capital to be able to fund purchases and service mortgage payments absent enough investor backing. So they're not starting from zero and trying to crowd fund 100% of the purchase every time. Also reading between the lines, some of their blurb alludes to being able to source properties before they hit the market which obviously helps. So it's not a daft idea, but the business needs some cash behind it to get going and to be able to buy properties itself, and would clearly benefit from some industry relationships.

[Returningmember]

Hi.
I started a property syndicate last year after playing with the idea for a number of years and crunching numbers for the same period.

I event started a topic on it in this business forum. Apologies I’m on my phone in the bath and can’t fathom how to add a link to my topic.

I am from an investment background so had a head start with investors to canvas.
We’re just about to offer on another property.

[OllyMo]

Another to check out is Bricklane.

They are similar to property partner. They source properties, wrap them up in a REIT, and allow individuals to buy into the REIT. Capital appreciation and rental income is the upside to the portfolio. You need a lot of cash, they have raised about £5mm equity and £15mm debt.