Property Crowdfunding for Contractors in the UK
The latest big thing in the last year is property crowdfunding for contractors. Crowdfunding is suitable for all contractors but IT Contractors seem especially interested. Crowdfunding is perfect for contractors
Some of you may already know what Crowdfunding is. For those that don’t I’ll explain.
It is where money needs to be raised for a number of things. It could be businesses-related, charity-related or property-related crowdfunding.
Tech Company Crowdfunding
Say someone has a great idea and wants to raise funds for a great new tech innovation. They would simply go on a crowdfunding website and offer it there. Those that think that it is a good idea can invest in it.
The good thing is that you can invest as much or as little as you like – maybe as small an amount as £500. For this you can get shares in the company.
As this is a contractor mortgages website. we’ll stick to Property crowdfunding for contractors.
IT Contractors make, on average, around £400 a day. That means they make close to £100,000 a year – and have plenty of spare cash to invest.
They want to make their pile as quickly as possible. They tend to stick it on the Stock market or invest in buying property.
However, they miss out in start-ups if they just buy shares on the Stock market and can miss out on a lot of the gains.
If they invest in property, they have to invest a lot of their time in maintaining it and renting it out. So, there can be a lot of hassle in this too.
Property Crowdfunding for Contractors
This is where Property Crowdfunding for contractors is right up Contractors’ street.
1. Instead of choosing the property themselves and trying to work out if a particular property will make them money, they will have an expert buyer, who knows the market, to choose the property.
2. Instead of having to refurbish the property to get it ready for rental, they will have a management company to do that.
3. Instead of having to find someone to rent the property, and to get the rent from them on a regular basis, they can leave that to the management company too.
4. Instead of having the hassle of maintaining the property after they have found a renter they can have a management company do that.
They, also, don’t have to wait till they have enough money to buy a property. Using crowdfunding, they can simply buy part of it. Because of this they don’t have any of the hassle.
Without any further action from then they will get regular monthly rental income from any properties they have crowdfunded.
So, all of those who crowdfunded a particular property are shareholders in the property. Once it is mooted that the property should be sold it is down to a majority of the shareholders to decide that it should be sold.
Of course, individuals can sell their own share.
Property Crowdfunding Opportunities
As a contractor mortgages website, we have been contacted, recently, by a number of property crowdfunding companies who want us to tell our contractor readers about property crowdfunding opportunities they come up with.
One property crowdfunding company tell us that they get 4 properties a week to crowdfund.
If any contractors wants to get to hear about property crowdfunding for contractors opportunities, as they come up, fill in the form below.