LAUNCH OF PEER-TO-PEER LENDING THAT BUILDS ON BANKS!

A new service launches this week that could help hundreds of UK property developers seek out investors to plug the gap left by the banking crisis.

The brainchild of two experienced former North-West bank managers who specialised for decades in the property industry, Steve Robson and Tony Goldrick, CapitalStackers is set to provide a solution to the small investor’s dilemma.

Sums required to fund a new factory or office block may be out of the reach of most investors,  unless you go through REITs or collectives,  and the reality of investing in property is often associated with small residential housing, shops and industrial units which may involve borrowing from banks, PGs and possibly a risk to equity.

How CapitalStackers Plugs the Gap

Banks will usuallly lend 55-65% towards the cost of a viable project, and while the developer will have some equity of his own, additional funds may be required to plug the gap between the two.

CapitalStackers “stacks” private funding on top of bank lending in order to reach the level required to finance a property scheme, working with active banks rather than pushing them out.

Steve Robson (left) explains:

“Investors can choose where in the “stack” of finance they’d like to invest – picking their own level of risk and return, which management team they prefer, which projects they’d like to get involved with – spreading their  risk at different levels within the same project and typically bringing in returns of between 5% and 20%. One of its most attractive features is that the investment is secured against the underlying property assets being financed.

“It’s certain to be of interest to people looking to invest through their pension funds at a sensible risk/reward ratio. In addition to the bank’s due diligence process to get the project off the ground in the first place, the CapitalStackers team perform comprehensive risk analysis and ongoing monitoring of your investment.

“Investors benefit in the following ways: (a) the lending risk analysis process is doubled up; (b) phased funding of ongoing construction is more suited to a bank than individual investors whose cash goes in first and gets an immediate return; (c) senior debt gearing means you can use your cash to access more or larger deals; and, (d) cheaper senior debt enhances the return on your investment.

“So for the investor seeking more attractive risk-weighted rewards, this could be the future of property investing.”

You can find out more at www.capitalstackers.com

Or by calling

Steve Robson on 07774 718947 or Tony Goldrick on 07788 373126.