Build Backer, a property development crowdfunding website has launched an updated online lending platform.
Build Backer has recently launched an updated version of its online lending platform to facilitate more introductions between property developers and private investors. The aim of the new platform is to help more small property developers and house builders grow their businesses by providing access to private finance in a quick and simple manner.
As well as a platform upgrade, Build Backer has also increased its network of lenders to include institutional and specialist lenders in order to work with borrowers with higher value and more complex financing requirements. It’s because of this that the company is now able to provide finance solutions for new builds, heavy and light refurbishments, purchasing land and property from auction, as well as for investors looking to purchase below market value, repossession and distressed property.
On the new platform, private investors looking to lend to property developers can create their own personal lending account. They’re then able to browse the various live projects on the platform, view deal information and reserve the amount they wish to lend.
Build Backer founder Tom Ladds explained: “The recent launch of our upgraded platform is a great step towards our goal of becoming the hub of private finance for property development and house building.
Our main focus has always been to ensure the process is as quick and simple for borrowers as possible. That’s why we have one simple information form which, when completed, is distributed to suitable lending sources within our network as well as being posted on the platform if the project is suitable. By taking this whole market approach borrowers are able to better evaluate their options and base their decision on more than just the interest rate offered.”
For property developers, house builders and investors Build Backer is a serious alternative to traditional sources of finance for their projects. Financing a project through the platform is quick, simple and leaves the borrower in greater control. For lenders, it’s expected that the platform will quickly become an invaluable source of high quality deals.
By positioning as a platform for lenders and borrowers, Build Backer sets itself apart from other property crowdfunding websites in the market. With Build Backer, the lenders lend directly to the borrower, on an individual lending agreement and take a first ranking fixed charge over the asset, which is registered with both Companies House and the Land Registry. The entire process is handled independently of Build Backer by a leading London law firm to make sure both the borrower and lenders are protected.
Tom Ladds said: “It’s a really exciting time to be involved in the investment property finance market and our recent upgrade has been positively received by both borrowers and lenders. As well as saving both borrowers and lenders time and hassle, we’re also saving them money which increases yields for both the developers borrowing money and the investors lending it. Lenders registering with us should keep a keen eye on our platform over the next week as we begin to release more projects.”
Build Backer was founded by entrepreneur Tom Ladds.
Build Backer was founded in 2014 by Tom Ladds.
Build Backer is an online platform which connects borrowers and lenders in the investment property market.
Borrowers can contact Build Backer through the website (www.buildbacker.com) to request a client information form.
Once this information form has been completed Build Backer will distribute it to suitable lending sources and also use the information to create a fundraising campaign on the platform for private individual lenders if appropriate and requested by the borrower.
Lenders looking to wholly finance the deal will communicate directly with Build Backer with an offer in principle, which is then forwarded to the borrower. Individual private lenders looking to part-finance the deal can view the project details on the platform and then reserve the amount they wish to lend the borrower. It’s up to the borrower which offers of finance they choose to accept.
Once an offer has been accepted, a London based law firm handles the deal independently of Build Backer. After the legal work has been completed, the loan is transferred to the borrower’s solicitor who then in turn transfers to the borrower.
The borrower then completes, markets and sells the development. Once the development has been sold, the borrower’s solicitor will directly repay the lender(s) their original loan plus the agreed interest.
Build Backer charges the borrower a fee of up to 3%, of the loan amount, depending on the source of the loan. If the loan is from a single institutional lender, the fee is up to 1%. If the loan is from a single private individual lender, the fee is up to 2%. If the loan is from multiple private individual lenders, the fee is up to 3%.
Private individual lenders must self-certify that they are either a high-net-worth individual or a sophisticated investor to use the Build Backer platform.
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