Instead of paying interest on the investment, The House Crowd works on a joint venture basis by sharing the risks, rewards and ownership of the assets. Each investor becomes a shareholder in the company that purchases a property The House Crowd has sourced, with investors receiving a fully secured investment, and a pro rata share of 50% of the net profit when the property is sold.
In addition to complying with the Riba rule, The House Crowd business model also approaches investment in an ethical way with the funds generated being used productively, rejuvenating previously dilapidated housing stock to bring more homes back to life.
This in turn, is assisting the thousands of people looking to step onto the housing ladder while invigorating local communities.
Its innovative approach to property investment has so far raised approximately £600,000 for 8 purchases of empty properties which the company is in the process of bringing back to life in locations where they are most needed. The first of its kind in the UK, the unique business model uses crowdfunding to raise the capital to purchase properties, while negating all finder’s fees usually associated with property investment companies.
Frazer Fearnhead, founder and managing director at The House Crowd, comments: “We understand from talking to our Muslim investors that their investment options are quite limited if they wish to comply with Sharia law. We are told that our unique crowdfunding approach to property investment does meet the criteria of Sharia law.
“It is great to hear our business model has opened up property investment to more people from the Muslim communities, and we look forward to welcoming many more members over the coming months.”
With a wealth of experience in property investment, The House Crowd is able to gain access to empty properties (usually repossessions or abandoned properties) that are for sale, at well below market valuation, in need of modernisation, as well as having access to teams who can refurbish the houses achieving an immediate uplift in value. This methodology ensures investment growth is not reliant or directly linked to a rising housing market.
For more information or if wishing to invest in The House Crowd, please call 0845 230 5190.