Just a little over a year after raising £690,453 through its previous Seedrs campaign, UK property crowdfunding platform Assetz Exchange has returned to the investment platform and has already surpassed its initial £250,000 funding target. As previously reported, Assetz Exchange describes itself to be a revolutionary new crowdfunding property investment platform. The platform noted it is the buy-to-let you know, without the barriers.
“Assetz Exchange has been established to offer retail investors a way to more efficiently invest and trade in residential buy-to-let property and housebuilding projects for both income and capital growth. The business has an experienced team with a 17-year pedigree in the buy-to-let property industry through its association to Assetz Property and its 140,000 registered property investors.”
Assetz further explained that it generates revenue by charging an arrangement fee when the property is financed and then by a fee on the rental income. Both fees are modest in order to keep yields high for investors and rents fair for tenants. It is therefore important that the platform does the following:
- Keep fixed costs low – Property is an administrative challenge
- Attract high-quality tenants using what Assetz believes are the right contracts
- Assetz has partnered with charities that supply supported living accommodation
- The properties they tenant are planned to be contracted using long term full repair, maintenance leases, making them liable for these costs and keeping administration to a minimum
- These contracts should have the advantage of high renewal rates
- Target great deals – The better the deal Assstz can negotiate, the higher our income and the lower the rent
- Innovate – Assetz has moved into funding serviced plots which will provide a new source of homes
Assetz then added:
“Our mission at Assetz Exchange is to break down barriers to investing in sustainable and under-supplied Buy-to-Let sectors so that investors can create a diversified property portfolio in minutes and, in turn, create a better housing market in our innovative market segments. Residential property is a popular asset class as it provides stable monthly cash flows, long term capital growth and great track record. It is also understandable and tangible. Nevertheless, buy-to-let has significant hurdles, such as capital requirements, administration burden and transaction costs which is why it has not been an option for many average investors.”
Assetz is now offering 5.25% in equity at a £5 million pre-money valuation through the funding round, which is set to close at the end of December
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