Property crowdfunding platform CrowdToLive has launched a securities crowdfunding offer on Seedrs.
According to the offering page, CrowdToLive’s initial funding target of £400,000 has already been surpassed and is now in overfunding mode, having raised £467,000 from 100 investors.
CrowdToLive is selling equity at a pre-money valuation of £14.8 million. The offering is using the Seedrs nominee structure, EIS qualified as well approved for secondary trading on the Seedrs Market.
Regulated by the UK Financial Conduct Authority, CrowdToLive aims to make it easier for homebuyers to purchase their homes. The platform is a “rent-to-own” marketplace where the “champion” lives in the house and pays the rent while the investors receive the rent.
One example of an offering listed on the platform indicates an estimated annual return for investors of 9.7%, including a 6% annual rental yield.
There is also secondary trading for investors interested in selling their ownership in backed homes.
CrowdToLive effectively competes with banks or other mortgage providers that require borrowers to surpass a high bar to be able to get a loan. CrowdToLive states that it is “committed to helping home buyers move into their dream homes debt-free and allowing investors to generate stable income without the stress involved in tenancy management.”
CrowdToLive generates its revenue by charging a 3% upfront fee on each transaction as well as 2% on the rent charged each month. There is also an exit fee of 1% paid by the homebuyer every time their ownership increases.
The securities offering is live for the next four weeks.
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