What is it about CapitalStackers deals that sees them sold out so quickly to those in the know? 

 Anyone who’s ever tried to invest in a CapitalStackers deal knows you have to be quick on the draw to get a piece. They’re known for selling out fast – sometimes in minutes, and rarely more than a few days. 

 So in a market where even astute investors have been so publicly burnt (viz: Lendy and FundingSecure lenders), what is it that gives people such a voracious appetite for this particular property-based crowdfunder? 

 Certainly, interest has stepped up since they were dubbed the Safest 20% Returns in P2P Lending (https://www.4thway.co.uk/candid-opinion/the-safest-20-returns-in-p2p-lending/ ), but to be fair, deals were oversubscribed well before that.  

Of course, the mere scarcity of deals may sharpen the appetite of some. Since deals have to be very watertight indeed to withstand the buffeting from the CapitalStackers Due Diligence Team. Very few make it through – perhaps understandably since the CapitalStackers directors invest in every single scheme themselves – to the tune of £1.7 million at present (and almost £4 million in total to date). 

But then, seasoned investors are not swayed by mere rarity value. They tend to get down to the nuts and bolts.  

They’ll notice, for instance, the fact that CapitalStackers hasn’t set itself up to operate, as others havepurely as an alternative to the banks.  

And for very good reasons. 

Owned and managed by former bank property lending specialists, CapitalStackers is actually the only P2P facilitator that works in close partnership with banks, on the very same deals, sharing information, each doing their own independent due diligence and – crucially – allowing the bank to bear the ongoing liquidity risk in full In this way, it ensures all construction funding is in place before a sod is cut and any investor parts with a penny.  

This is deeply reassuring for investors, since they know that the success of each venture is fully self-contained and never has to rely on attracting funds from new investors to finish the project. It’s equally reassuring for them to know that banks are unlikely to wade into any deal this deep without serious confidence that it’s going to bear golden fruit. 

Anyone looking at the deal history will have been further reassured by the sheer volume and frequency of information. From the basics – conservative Loan to Value ratios; often lower than 50%, never above 75% – to what some might call pedantic; historic flood risks in the general area of the construction site (which actually proved its worth in a project in York a few years ago, which escaped the floods that deluged the city and returned an impressive 22.4% per annum to investors). In between, a huge volume of information is provided on the site’s dashboard for each deal, from the business history of the developers, surveyor’s reports, micro and macro risk analyses, builders’ inside leg measurements… 

And unlike some notable P2P platforms, whose interest rates are seemingly set as “headline” rates to attract investors, CapitalStackers’ return rates are calculated specifically through detailed analysis of all the above factors. This is the key to investors’ confidence. They know that the risk they sign up for is fairly and accurately priced into the return they will get for it. 

This meticulous scrutiny has produced an enviable record of returns to investors of between 8.5% and 22.5% with no losses (although as a prudent platform we would always point out to investors that one can never say never. However, since they personally have a lot of skin in every deal, it makes sense that the directors of CapitalStackers operate at an extremely high level of diligence and reporting).  

Hence, many investors, on being repaid, immediately reinvest in the next CapitalStackers scheme. Having begun investing with the confidence that they’re lending alongside the CapitalStackers directors who are lending alongside the banks, their confidence has been nurtured by a wholly positive, fully-informed lending experience and a fruitful result.  

And it’s why, if you do hear of a CapitalStackers deal coming up that you’d love to get a piece of, these are the quick-fingered competitors you’ll have to beat to get your bid in. 

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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

Midwood House in Widnes town centre was bought by Osborne House Ltd for cash around three years ago and half the office space converted into 17 apartments to test the local market for short-stay, single tenants (think workers away from home on medium to long-term contracts, looking for a cost-effective alternative to hotels). 

The results were impressive. It was fully let within 2 months and, after costs and allowances, is yielding a solid annual income of £65,000. 

The gated apartments, available at an attractive all-inclusive rent of £567 per month, come with secure parking and are within an easy commute of Runcorn, Liverpool and Warrington. As such, they have proven appeal to businesses looking to save on staff accommodation or private individuals working away from home.  

Having proven the market, OHL are now converting the remaining space into another 17 apartments. This will double the net income to £130,000. 

Since the property is already generating income with good interest cover and Loan-to-Value levels, this presents a lucrative opportunity for all those who have invested. Investor returns have been pegged in the range 6.9% – 7.5% p.a. over 36 months. Net income from the first phase is sufficient to provide interest cover of 135% – meaning there would have to be a substantial fall-off in demand before interest payments are at risk.  

Once the refurb of the remainder is complete, the ratios will improve dramatically, with interest cover increasing to 250% and LTV falling from 65% to 35%. 

Of course, while the ongoing construction still carries a small degree of risk, in this case that risk is mitigated by the appointment of the same contractor as successfully completed the first phase works, along with an independent monitoring surveyor who is under a duty of care to CapitalStackers’ investors. And, of course, income will continue to flow from phase one pending the new units coming on stream. 

 

About the developer  

OHL is a highly profitable, conservatively-geared company with gross assets valued at £7.4 million in April 2018. Net worth is around £6.5m. The shareholder directors have been known to the principals of CapitalStackers for over 25 years. 

For HMRC compliance reasons, this deal is not eligible for pension fund investment. 

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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

Berwyn View – the attractive and rewarding (for CapitalStackers investors) residential development in the pretty Cheshire village of Malpas – is moving forward with investors now funding Phase 2A of the development.  

Of the eight houses built in Phase 1 of the 22 unit development, five are already sold, two are complete and one is nearing completion (and under offer). Investors received annualised returns of between 10.70% and 15.62% in the nineteen months leading up to the refinance in August 2018. 

CapitalStackers orchestrated repayment of the first phase by refinancing with the original senior lender, RBS, enabling the developer to stay within RBS’s lending criteria and also free up some capital to start on Phase 2 infrastructure works. 

To say that the refinancing deal with this very talented developer was popular with investors would be an understatement – the new £810,000 loan for Phase 1B was fully subscribed in just 31 minutes! 

In parallel, CapitalStackers introduced Hampshire Trust Bank to provide the £1,456,000 senior debt for Phase 2A, and then invited investors to plug the funding gap of £275, 000. Within a Loan-to-Value range of 67% and 73%, these investors can expect returns of between 10.61% and 13.84%. 

The developer, Patrick Lomax, was equally happy  and effusive in his praise of the CapitalStackers process, saying, “Sylvia and Steve are just brilliant. Dealing with CapitalStackers is a very pleasant experience in what is by far the most difficult area of the construction business. They’re useful, helpful, informative and easy to talk to.” 

He went on to say, “It’s great that small construction firms have access to this kind of funding to get projects off the ground so that the big firms don’t get to dominate everything.” 

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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 has completed the drawdown of £1.36 million funding for a prestigious development of eight homes, in the pretty Cheshire village of Malpas. Work is expected to start on site later this month and two properties are already under offer at the asking price.

The P2P property lending specialist also successfully negotiated £1.58 million of senior funding from a major high street bank, on behalf of the developer Orchard House. The gross development value of the scheme is £5.1 million.

CapitalStackers’ investors now look forward to returns of between 10.7% and 15.6% per annum over the next 22 months with lending at Loan to Value ratios from 55% to 73%.

Steve Robson of CapitalStackers comments, “Investors were invited, at the back end of last year, to lend into three layers and choose their own level of risk and return. Many are repeat investors, some of whom benefited from returns of up to 22.5% last year on an office to residential conversion we financed in York, however some are new investors, keen to dip their toe into the P2P property lending market.

“They are attracted not only by the high level of returns available, but the transparency and ease of the deals. We now have 150 investors on the books and rising, plus an exciting development pipeline. There are opportunities still available in the Malpas deal through our secondary market.”

Patrick Lomax, Founder and Director of Orchard House comments, “I have been impressed with CapitalStackers detailed knowledge of the property industry and finance market. We dealt with an experienced and senior team who absolutely delivered to the brief and exceeded our expectations. They have access to a wide pool of potential investors and delivered within relatively tight timeframes. We spoke to a number of debt advisors but none came close to the same level of service and professionalism.”

The Orchard House development is only a short walk from the 18th century market town of Malpas, Cheshire – a friendly village community within commuting distance of Chester and Wrexham and close to the Ofsted outstanding Bishop Heber High School.

A number of listed buildings dotted around the immediate area (including the Grade 1 Church of Saint Oswald), lend the site a rare traditional charm. And since the developer has in-house design capability, each of the homes can be partially bespoke to the purchaser’s requirements, which has sparked early interest from buyers with plots already being reserved off-plan.

CapitalStackers investment opportunities appeal to a broad spectrum of investors, from conservatively positioned pension funds to those with a higher risk-and-reward appetite. The minimum investment is £5,000.

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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