Crowdahouse Review

4.3
51 votes
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Introduction Crowdahouse

Crowdahouse is a peer-to-peer (P2P) UK-based real estate crowdfunding site for lending to business borrowers, most of the time backed against properties. At the moment, they operate just as a business-to-business (B2B) platform.

Rather than lending to individual people, the company lowers the risk by giving investors the opportunity to lend just to other companies. The client’s loan is backed by a first property charge so the client has no fees as a lender. Members of Crowdahouse can lend from £500 to more in exchange for interest payments during a fixed period of time. They provide their members access to a secondary market, so investors can purchase and sell existing loans.

Crowdahouse was established in 2012 and began offering P2P services three years later. Their team consists of highly-trained individuals with experience in the real estate field, and they are spearheaded by Gary Corben, who serves as the CEO, and who co-founded the company with Peter Lane, who took the role of the CFO.

The team has a combined 70 years of experience in real estate investment and financial products, such as insurance and risk profiling. They source loan projects from within the property industry and apply their background and networking connections to make sure that each project represents a chance that we can provide you and our other Members.

Overall review

Advantages

  • Lets you put 100% of your capital to work through your ltd business
  • The company answers inquiries within 48 hours
  • The Borrower is always the owner of the real estate asset

Disadvantages

  • Website doesn’t see lots of traffic

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Crowdahouse Homepage

 

The platform
4.4 Stars

Crowdahouse crowdfunding makes secure lending an easy process. It lets you put 100% of your capital to work through your ltd business.

The goal of the Crowdahouse platform is to make B2B peer lending easier. As a lender, you can lend your capital through your company and get larger returns with no fees. Professional borrowers are the peer you are lending to, and they decide how much they need, for how long and the annual percentage.

The website displays the available projects, and you decide if you want to lend and how much. The person who borrows purchases or refinances a property, and you get security in the shape of the first charge over the property.

The borrower pays you regular interest, and you can even sell your loan at any time to other members! When the term finishes, you get all your capital returned, so you and your business profit!

Crowdahouse offers members private real estate properties for investing.

What does it offer?

The company offers UK-based properties. You need to be part of a UK-registered ltd company if you wish to borrow or lend via Crowdahouse, or at least a self-certified High Net Worth Individual (HNWI) borrowing for business purposes.

How to get started? 

Joining the company’s ranks as an investor is done for free and you have no obligations to lend, as well as no extra fees. In order to become a member, though, you have to own or control a limited business.

When you begin your registration process, you need to put in some personal information and information about your company, such as:

  • Username, first and last name
  • Personal address, city, country, postcode
  • Phone numbers and emails
  • Name of the company
  • Details about your role at the business

When you make an account, you can check the ongoing lending opportunities on the official website. When you find a loan project that suits your lending needs, then you can make a decision on how much you want to lend.

The starting amount for investing is 500 British pounds and up, in return for interest payments during a fixed term. Your loans are secured against the borrower’s real estate asset with a first charge over the title.

After that, sit back and wait to begin earning interest on your money! You can sell your loan or purchase an existing one from other investors via the company’s member-only market intended for purchasing and selling existing loans. The name of this market is Crowdahouse. Crowdahouse is at the moment open just to Members who are lending through corporate bodies (Limited Company).

Bear in mind, when you fill in a Lender’s signup form and are verified by the company, then you become a Lender. You will need to clear standard Know Your Client (KYC) and Anti-Money Laundering (AML) ID checks prior to becoming a Lender. Crowdahouse doesn’t incur a lending fee, unlike other peer-to-peer firms, so the total amount of the loan that you pledge is going to be applied to the loan venture to earn interest. You have to be a Crowdahouse Member before you can become a Lender.

If you want to become a borrower, you need to contact the company’s team via their official website. They will ask for some basic info about your real estate asset. After an assessment by the team, you will be contacted once more.

You have to give them concise and correct details, so that our Members have access to important info about the loan offer and the asset you want to offer as security. You also have to give the company legal docs as confirmation where required. A RICS valuation done by a surveyor from our panel has to be provided for each asset offered as security.

And remember, the Borrower is always the owner of the real estate asset. Crowdahouse Lenders simply lend against the security you offer – a first charge against the property.

Regulations

Crowdahouse is situated in the United Kingdom. Crowdahouse Pioneer Ltd is registered with the ICO under the Data Protection Act. ICO is the UK’s independent body set up to uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals.

Crowdahouse operates a B2B-only platform which doesn’t involve Regulated Credit Agreements and doesn’t need to be authorised by the Financial Conduct Authority (FCA).

Risks and securities

The company enlists the help of company advisors, such as:

Comparable information can be found at lots of sources and they utilize the same Royal Institution of Chartered Surveyors (RICS) providers that all financial institutions and lending institutions utilize to value a real estate asset being provided for lending.

The company aims for total transparency, such as disclosing any conflicts of interest that could apply, so that you are totally aware of and comprehend all the risks prior to lending to any project.

Unlike equity crowdfunding (purchasing real estate in a crowd or investing in shaky start-up enterprises), lending secured against property can gain from a wide and open marketplace with free tools offered for all to carry out due diligence on a real estate prior to picking to lend. You are advised to perform these checks or look for independent advice before committing to a venture.

Customer Service

The Crowdahouse team is open to inquiries from members and interested individuals/companies. You can contact them via email: info@crowdahouse.com

Another way to contact them is via the official website, where you fill in a form with your details, the topic of your inquiry, and message.

The company claims to answer inquiries within 48 hours.

Conclusion

The company offers fair opportunities for both lenders and borrowers. While some may be jaded that just companies and high-net individuals immersed in their business can take part on this platform, some will welcome that they get such a niche real estate opportunity and their own corner on the Internet.

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