Investment platform MercyCrowd has has designed an ‘equity only’ model designed to help shield investors from negative leverage risk in a flat or falling housing market.
Unlike other property crowdfunding platforms, MercyCrowd insists that every deal is 100% debt free. Investors can buy equity in properties across Britain, France and Dubai and realise “typical” rental returns of between 3.2% and 7.2%.
MercyCrowd handles all property management issues including finding tenants, collecting rent, maintenance, and charges. The firm sources each buy-to-let property and negotiates a price before listing it on the platform for investment. Once the investment target is reached in full, the property is purchased and the process of letting it out begins.
Rental returns are paid, proportional to an investor’s equity holding, on a quarterly basis. The investment will typically be sold between three and five years after purchase.
MercyCrowd invests its own money in each property. One property, a £176,750 apartment in Manchester, has already been fully funded, purchased and let out.
Anouar Adham, MercyCrowd’s founder and CEO said: “We are delighted to officially launch MercyCrowd and offer people the chance to realise the benefits of investing in property, without the drawbacks of taking on debt.
“By focusing on an international outlook through our diverse selection of properties across Britain, France and Dubai, we believe there is something of potential value for a variety of investors, from a first time investor to those with dozens of assets.
“The economy’s continual reliance on debt is concerning, which is why MercyCrowd is an equity-only platform.
“Debt-free property ownership is the next big thing and we want to be at the forefront of the trend.”