Investor Suitability

Although these investments are effectively loan agreements, we still as a business follow the guidelines from the FCA relating to UCIS (Unregulated Collective Investment Schemes) for individuals.

As a result we expect our investors to be sophisticated investors who are those that have extensive knowledge and experience of investing, and high net worth investors as those with an income of more than £100,000 or having assets of more than £250,000 (excluding their property).

Risks

Propeasy invests very cautiously in its properties to ensure we maximize our returns but also limit any downside risk.

We only buy properties that meet our key metrics to ensure we can cover any investor returns agreed.

We pay our investors monthly which is great cash flow for them but also means they are getting their returns to them on a regular basis and not rolled up to the end of the term. All profits from the property are retained in a separate client account that builds up over time to ensure the capital can be repaid back to the investor at the end of the term.

We have other properties that are cash flowing positively, not tied into investor funding if we needed to access other monies.

We have equity in our properties that we could access if we needed to via equity loans or selling the properties themselves.

We generally buy properties under market so that we have instant equity available to us if needed.

As a business, we also invest alongside our investors in any property deal to show we are also committed to the same investments.

Due to the nature of the properties, we purchase we look to gain a commercial valuation within 2 years on more preferable terms giving us more access to cash.