Hundreds of UK property developers with attractive products are crying out for investors to plug the gap left by the banking crisis.

Big deal, you say. But possibly too big.

The hefty sums needed to fund a new factory or office block are simply out of the reach of most investors unless you go through REITs or collectives. But then you lose control and the thrill of involvement.

So for most of us, the grim reality of investing in property is slogging away at small residential stuff, shops and industrial units – with the attendant headaches of borrowing from banks, PGs and management headaches – not to mention the equity risk.

But a new service launches this week that might give you a considerable leg up into the headier heights of property Nirvana.

It’s the brainchild of two experienced former North-West bank managers who specialised for decades in the property industry. It’s called CapitalStackers, and it’s a brilliant solution to the small investor’s dilemma.

Very often, banks will lend 55-65% towards the cost of a viable project, but no more. The developer will obviously have some equity of his own, so it just needs someone to plug the gap between the two.

Obviously, that in itself is too big a leap for most investors. But here’s the clever bit.

Simply put, CapitalStackers “stacks” private funding on top of bank lending in order to reach the level required to finance a property scheme – in other words, it actually works with active banks rather than pushing them out.

Investors can then choose where in the “stack” of finance they’d like to invest – picking their own level of risk and return, which management team they prefer, which projects they’d like to get involved with – and they can even spread their risk at different levels within the same project.

It typically brings in returns of between 5% and 20% – and one of its most attractive features is that the investment is secured against the underlying property assets being financed.

It’s certain to be of interest to people looking to invest through their pension funds at a sensible risk/reward ratio. In addition to the bank’s due diligence process to get the project off the ground in the first place, the CapitalStackers team perform comprehensive risk analysis and ongoing monitoring of your investment.

Which means investors benefit in the following ways: (a) the lending risk analysis process is doubled up; (b) phased funding of ongoing construction is more suited to a bank than individual investors whose cash goes in first and gets an immediate return; (c) senior debt gearing means you can use your cash to access more or larger deals; and, (d) cheaper senior debt enhances the return on your investment.

So for the investor seeking more attractive risk-weighted rewards, this could be the future of property investing.

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CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.

CapitalStackers – the hottest new concept in peer-to-peer lending – has added considerable weight to its board with the recruitment of new director Tony Goldrick.

The online platform specialises in property investment and development deals secured by commercial and residential real estate, so Tony’s considerable experience in both the banking and property sectors enhances the company’s powerful presence in this market.

After 30 years working for Royal Bank of Scotland, Tony spent the second half of his career in real estate finance – having established the bank’s first dedicated regional property lending team in Manchester in 1999. The success of the team led to expansion across the north of England, and at its height Tony and his team were managing more than £5.5bn of lending.

Tony is a well-known face in the real estate sector, with a wide range of contacts with developers, investors, property agents, banks, and other professionals.

Since leaving RBS in 2012, he has been advising a number of large regional property development and investment companies, and will continue in this role, complementing his involvement with CapitalStackers.

“This is an exciting addition to the board” said Steve Robson, CapitalStackers’ Managing Director.

“His experience and knowledge of real estate really complement our existing team and I look forward to working closely with Tony to push the business forward”.

As part of the pre-launch activities Steve Robson, Managing Director of CapitalStackers presented his new model at the highly successful Great British Private Investor Summit in London in March – unveiling an inventive template which augments traditional bank lending, allowing private and corporate investors to tailor their risk and return profile.

It’s likely to be a particularly attractive vehicle for investors, given that all loans are secured by commercial and residential real estate. The North West based firm has gained a lot of attention in this embryonic, but fast growing and dynamic sector.

CapitalStackers aims to be the first-choice destination for investors looking to finance property investments and development schemes. It’s the ideal platform for high net worth individuals or sophisticated investors with a minimum of £5,000 to invest, looking to achieve a better deal than the more traditional investment routes offer.

It is supported financially and professionally by Hallidays Ltd – a firm of accountants with an admirable reputation. CapitalStackers and Hallidays already have a successful track record in changing the world of property finance and information technology. In 1999 they set up pi-FRAME Ltd, a specialist software house which sells real estate lending risk analysis software to banks and property lending boutiques.

The CapitalStackers team have huge property lending experience and can introduce investors to well-structured and secured real estate lending deals, setting up relationships with experienced property entrepreneurs and giving attractive risk-weighted rewards.

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CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.

Steve Robson, Managing Director of CapitalStackers presented to a packed audience at the highly successful Great British Private Investor Summit in London yesterday, organised by Angel News. Some 250 high net worth and angel investors were in the audience listening to pitches from a range of crowdfunding and peer to peer lending platforms.

Following the event, Steve said:

“We are delighted with the response from investors to the business model and really encouraged by their level of interest in the platform.  The completion of two deals marks an important step for us and we now look forward to the formal launch to enable us to engage with the wider investment community.”

At a recent pre-launch event hosted by Hallidays LLP, CapitalStackers generated enough interest to complete its first two deals. The CapitalStackers business model seeks to engage with banks and allow investors to choose their preferred risk and return profile.  That, and the fact that all deals are secured by commercial and residential real estate, made the Stockport based firm stand out in this embryonic but fast growing and dynamic sector.

CapitalStackers and its website aim to be the destination of choice for investors looking to finance property investments and development schemes. These will be high net worth individuals or sophisticated investors with a minimum of £5,000 to invest and looking to achieve a better deal than through some of the more traditional investment routes.

It is supported financially and professionally by Hallidays LLP, a firm of accountants with an excellent reputation. This is not the first time these people have come together in the world of property finance and information technology. In 1999 they set up pi-FRAME Ltd, a small and specialised software house which sells real estate lending risk analysis software to banks and property lending boutiques.

At the recent pre-launch event, Steve Robson commented:

“Real estate lending has spent long enough in the doldrums. This initiative and others like it will go a long way to repairing the property finance market. Not only will real estate borrowers benefit from improved liquidity, so also will investors through achieving better returns. We are genuinely excited about the future.”

Blog Press Releases

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.