We’re delighted to add a new layer of transparency on the CapitalStackers website.

On the new “Portfolio Statistics” page, members can find answers to general questions, such as how much cash we’ve raised in total through our investors, how much has been provided by banks and what the average investment is.

But it also allows them to browse through enlightening performance stats such as

  • Highest and lowest investor returns
  • Average return
  • Repayment performance
  • Risk and reward

Along with useful background information to explain any anomalies or unusual variations.

You may ask why we haven’t done this before. The simple answer is, until recently we haven’t had sufficient data. However, having reached the significant milestone of £60 million funding raised (that’s £45 million through banks and the rest through you) we feel the sample size is now robust enough to give you a meaningful set of statistics.

We’d like to take a moment to thank our investors and appreciate what a huge achievement they’ve helped to make possible – behind every statistic there is a viable, successful building project that would never have got off the drawing board if it weren’t for their collective support.

So now’s finally the time to stop hiding our light under the bushel.

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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.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

It’s still possible to earn double-digit returns from P2P without excessive risk. Look beyond the trends and big data and you can uncover some lucrative gems.  

The recent AltFi “State of the Market” report July 2019 had some sobering words for investors – particularly from BondMason’s CEO Stephen Findlay and the restructuring expert, Damian Webb. 

The report largely based its melancholy conclusions on the slackening growth in the Big Four – Zopa, Funding Circle, RateSetter and MarketInvoice – which gives you a summation that, while statistically correct, is incomplete and unhelpful to the investor. A bit like telling us all cars are unreliable because you once owned an Austin Allegro. 

Yes, the Big Four comprise the lion’s share of the market, but they also cover a limited field of vision – that is, they chiefly deal in unsecured loansor those not secured on easily identified concrete assets (with the exception of RateSetter’s property book) 

BondMason announced recently that it was pulling out of P2P due to these diminishing returns, but in this report Mr Findlay is keen not to appear a total Cassandra. 

Surveying the £6 billion world of peer lending from his vantage point atop a £54m loan book, he contended that net returns in the 3% – 6% range are achievable today at acceptable levels of risk and that the market is settling into a low-to-medium risk spectrum.  

“I still think there are some good opportunities to earn attractive risk-adjusted returns,” he shrugs, “but probably at the more conservative end of the market”. 

 

High returns aren’t the only yardstick. 

Had Mr Findlay looked a little further, he might have found reasons to be a little more bullish There are still opportunities for canny investors to make double digit returns without going on a white knuckle ride of high risk. Just because a return is high doesn’t mean you’re at the crazy end of the market. On the other hand, it’s equally possible to earn under 6 per cent and have the investment catching fire in your hands. High returns aren’t the only yardstick, although the way some commentators paint it, you’d think they were. 

It’s possible, for instance, to find platforms like CapitalStackers where you can lend to developers sitting on a reassuring chunk of equity and with Loan-to-Value ratios as low as 55% – and yet still make double digit returns in the time it takes to convert an old warehouse into upmarket flats.  

It’s also possible, to find platforms that are totally transparent and view regular and granular reporting as the duty of care it is, rather than an onerous and grudging requirement. 

The report overlooks opportunities like these and the nervous investor, led by pronouncements that lump together such diverse  “property lending” products as bridging loans, buy-to-let mortgages and development finance, might think that all real estate] P2P is going to hell in a handcart. 

Particularly those that read the section written by Damian Webb. Viewing Mr Webb’s comments through the lens that he is an insolvency practitioner, may offer a little perspective. Were it possible to rub one’s hands and type at the same time, one can imagine Mr Webb doing just that here. 

“The sector is becoming more and more fraught with uncertainty,” he laments. ““Many of the alternative finance lenders have focused on markets that are underserved by traditional lenders or in spaces where traditional lenders do not operate. Banks and traditional lenders retreated from these areas due to the issues and losses they experienced during and after the financial crisis and consequently regard them as high risk.” 

Nowhere does he suggest that it’s possible to invest in platforms like CapitalStackers that work in tandem with the banks, partnering on deals whose risk the banks have every confidence in, allowing the banks to take the liquidity risk, and also to benefit from due diligence that is tighter and more thorough than any bank aspires to. 

He laments that the elements of the business lending market he’s come across professionally are often characterised by limited data, which makes underwriting inherently difficult or challenging. 

He bases these insights on “his own experience of dealing with impaired business loan books” (although not specifying markets, connections or backgrounds), which is a bit like an undertaker giving us his opinion on who’s going to win the World Cup. 

He goes on to adumbrate about property lending in particular, whose yields “have fallen dangerously low during Britain’s long property boom”. 

“In Birmingham, for example,” he says, “five years ago it was possible to achieve residential yields of 7 per cent to 8 per cent. You would be lucky now to get between 4 per cent and 5 per cent. People are investing in development projects on the basis of these low yields.” 

Of course, the hearty chuckles of investors who’ve been comfortably pocketing 12, 18 and 20 per cent in CapitalStackers deals in recent months will be drowned out by Mr Webb’s ululations.  

Likewise, his complaints that P2P platforms don’t own their assets and loans can’t be sold to retrieve capital will be met with puzzled looks by CapitalStackers investors who trade their loans openly in the platform’s secondary marketplace. 

Yes it’s easy to look at big data and find patterns that frighten you. But big data leads to bad maths. And bad maths leads to poor investment.  

So rather than wring their hands about the bad operators in this market (and some of them were – and almost certainly are – very bad), the astute investor can find opportunities by looking through the leaden headlines to find the gold in the cracks between.  

Of course, there are risks in any investment market, and in property development the biggest risk – not necessarily the most likely, but the biggest – is the possibility of property values crashing more than 25%, burning through the comfort blanket and leaving lenders facing a loss. And of course, this kind of financial apocalypse is entirely possible – but then, all risk should be priced in by prudent platforms, and it makes sense to check this before investing. 

However, in property-based crowdfunding, fortune can still very much favour the lateral thinkerSo don’t be put off by the headline rates; don’t automatically assume that high returns mean high risk; and above all, don’t swallow whole what the “experts” tell you. 

Even when the whole world feels like it’s going to hell in a handcart, someone, somewhere is making money out of it. 

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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.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

CapitalStackers investors were invited to benefit from the refinancing of a popular ongoing project, which was already at an advanced stage of construction, with practical completion scheduled for May 2019.  

The original auction for the Boothferry Road development in Hesslewest of Hull city centrewas sold out in 24 hours, with investors bidding returns between 11.07% and 14.45% for Loan-to-Values of 63.3% and 69.8%, respectively. 

Hampshire Trust Bank  the senior debt provider – had increased their facility to cover cost increases caused by:  

  1. bad weather – necessitating deeper foundations and a temporary road, and 
  2. cost inflation for materials and labour. 

Of course, cost increases are never ideal, but we regarded these as fair. However, the developer wished to access additional working capital and restructure the funding to allow them to expedite the second phase and take advantage of the current, very positive sales momentum.  

In considering their approval, CapitalStackers’ risk assessors were impressed by the experience of the team (Craig Swales and Steve Vessey Baitson of Applemont), and the high level of reservations on the houses (mainly from first-time buyers with no chain).   

Applemont is an experienced player in housebuilding and general construction around East Yorkshire and Hull. Their knowledge of the Hull owner occupier market is sound – and clear evidence of this is shown by the keen early sales interest in the Hessle scheme.  

Eleven reservations have been taken on the fifteen new houses in the first phase and, of these, only one purchaser has a house to sell. Among the initial purchasers are seven first time buyers and six have paid a reservation fee. Six viewings over a recent weekend suggest ongoing demand for the scheme.  

The agreed sales prices already exceed the Savills valuation by £27,500 and currently stand at £2,057,500 in aggregate 

Craig Swales of Applemont said of the new deal, “It’s fantastic for a small developer to have this facility and flexibility. The ability to refinance on the move gives us much-needed agility in a fast-changing world and CapitalStackers make it so easy to adapt our scheme and raise the right money when needed”. 

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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.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

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.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477