Steer clear of BTL crowd funding

There are an increasing number of online platforms offering crowd funding on BTL investments.

It's this week's buzz in the property investment circuit.

The premise that a property investor can raise investment from individuals and cut out the need for the financial institutions using an online crowd funding platform is kind of nice ... pure .... power to the people and all that, in principle anyway.

However, in reality the concept is high risk. Long term returns are impossible to predict, with so much reliant on the economy's wind direction. 

Would you entrust your hard earned savings to some unknown property developer / landlord?

Attracting property finance from detached investors has a long track record of sharks, charlatans and misguided psychopaths. It's another reincarnation of the 'Property Clubs' that burnt so many unwitting investors.

This time its using a platform, and a smiley website, and the pretence that it is freeing us from the shackles of the financial institutions.

It all sounds so liberating. 

However, I won't be surprised when the wave of news stories start. Pictures of glum faced investors telling of their lost savings thanks to an unwitting landlord or unscrupulous con artist. 

Fools are easily parted from their money - be warned, the ideal is never the reality.

Take advantage of our discounted landlord insurance rates