Build Backer announced last month they were accepting early bird registration for their platform that investors to access opportunities in property for as little as £500. The company recently stated that their platform is now open to investors but still not fully live. The site states go live is scheduled for sometime in December. The company states that participating individuals may enjoy “the high returns and asset security given by traditional property investing but without the high capital outlay”. Build Backer is a debt – based crowdfunding platform where builders post the specifics of their loans.
The structure of the real estate crowdfunding platform allows investors to “reserve” the amount they would like to invest. Once the campaign closes successfully funds are transferred. Funds will be held in a regulated custodian for added security.
Build Backer was founded by Stamford, UK based entrepreneur Tom Ladds. He states:
“We have taken a traditional method of investing and brought it right up to date with the crowdfunding platform. In the past an investor would have had to invest a very large amount of capital as well as engaging in long negotiations and legal work to gain access to good investment opportunities in property development.”
“Now, investors can invest just £500, or more if they want, and there’s no negotiation or legal work needed! The Build Backer platform offers everything the investors need to search and filter potential investments, complete due diligence, make their investment and manage their investment portfolio.”
BuildBacker notes the crowdfunding industry is one of UK’s fastest growing sectors. Build Backer views themselves as a unique participant.
In a recent blog post Build Backer shared their opinion as to why crowdfunding property is the future. The bullets are as follows:
- It’s more profitable
- It’s cheaper
- It’s more diversified
- It’s time effective
- It’s hassle free
Management does not believe traditional financing is going away – it is just going to be rather smaller.
