The House Crowd raises £5m from hungry investors
THE House Crowd, the south Manchester property investment company, says it has now raised more than £5m from investors which it has allowed it to buy more than 70 residential houses.
The Hale firm, founded by entrepreneur Frazer Fearnhead and surveyor Suhail Nawaz in 2011, operates under a model where individual investors club together to buy a specific property, which is then refurbished and rented out.
It attributes its recent growth – £3m from investors since October 2013 – at its acccessibility and growing frustration among savers at rock-bottom interest rates.
Investors can invest as little as £1,000 to buy a share in a special purpose vehicle set up to buy a specific property. They then receive a quarterly or annual dividend.
Mr Fearnhead managing director of The House Crowd said: “We’re delighted to have passed this significant milestone. The country’s fascination with property and the attraction of hassle free investment through crowd funding has proved to be a very popular combination.
“We speak with investors on a daily basis frustrated with their banks or the poor levels of interest accrued in their savings accounts. More and more people are looking to boost their retirement income, or do something with smaller amounts of money than have it sitting around, doing nothing. The House Crowd provides investors, of any age, the opportunity to invest in bricks and mortar without having limitless means.”
The venture has recently secured its 74th project, a £265,000 property in Stockport. It has attracted investment from more than 3,000 individuals.