Please click on one of the questions below to reveal the answer. If you have a question that is not listed below, please feel free to contact us
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General Questions
- What is Property Moose?
Property Moose is the UK’s first true crowd funding platform for property development bringing together developers and investors so they can each benefit from the property market.
- How does it work?
Please read see our How Does it Work pages for more information.
Investor Questions
- Who owns the properties?
Properties are purchased through a special purpose vehicle (in the form of a limited company) (the “SPV”), incorporated and managed through our professional corporate advisors. Each property is purchased through an individual SPV. The directors of each of these companies will be from our own specialist teams and, as a minimum, will consist of a solicitor specialising in corporate law and an asset management specialist. These directors will ensure that your investment is securely managed in accordance with English law.
- What do I receive for my investment?
You will receive a legal share in the SPV in the form of a B Ordinary Share. The number of shares you receive will depend on how much you invest and will equate to your pro-rata investment in the Crowd. You will receive a share certificate for your shares that will be available within your online account. Net rental payments will be distributed annually and, if payable, you will receive a dividend each year. Once the investment term ends, the property will be sold and the SPV liquidated with all cash being distributed to the Crowd.
- What rights do I have as a shareholder?
Each B Ordinary Share will carry a right to participate in the distribution of any profits and a right to the return of any capital at the end of the invest term.
- How much does it cost to invest?
Joining Property Moose is completely free of charge. We charge a fee of 10% of the profit you make.
- Can I receive EIS or SEIS tax relief?
Unfortunately, as the SPV company you are investing in is purely dealing with property, these tax reliefs are not available. You are responsible for the payment of any taxes through your own tax returns.
- How long do I have to invest for?
Each investment through Property Moose will specify the term of the investment. This will range from 1 year to 9 years (but is more commonly between 3 and 5 years). Once the term of the investment has expired, the property will be sold and all the cash distributed to the Crowd.
- How much will I make?
Property Moose is completely transparent and each investment advertised will fully display estimated yields, estimated returns and also any fees, costs and expenses. From this we can calculate your estimated net yield, which will be displayed on each property’s investment page. Of course, the performance of any property depends on market conditions and property prices can go down as well as up. Property Moose invests its own money in the properties we develop so we do believe they are good investments and will make very strong returns.
- How safe is my money?
In short, very safe! The money you transfer to us will be held in a client trust account, completely separate to our own bank account and held on trust for you (the same as a solicitor’s client account). Once a property is fully funded we will instruct our surveyors to complete a RICS valuation and, if this confirms the property is worth the same or more than we are paying, we will instruct our solicitors to purchase the property. Your money will then be transferred to our solicitor’s client account and this money will only be used to fund the purchase of the property and any renovation or other costs specified in the original investment offer.
- Can I get my money back early?
Yes. As you will hold actual shares in a limited company, these can be sold or transferred. Please see below for more information.
- Can my shares be sold or transferred?
Yes. You will hold B Ordinary Shares which can be sold or transferred at any time. However, to ensure the Crowd is managed safely and securely, these shares can only be sold or transferred through Property Moose and at nominal value (i.e. the amount you initially invested). This is because the asset will not be realised until the end of the investment term. Any sale or transfer will incur an admin fee of 2.5% to help cover some of our own costs in legally making the sale or transfer.
- What happens if the property I invest in can’t be bought?
If we are unsuccessful in negotiating the acquisition of a property, we will give you two options. (1) we will try and provide you with an alternative investment offering a similar (or greater) yield; or (2) you can request your money back, in which case, it will be returned in full.
- Who are the developers of properties?
Properties will be advertised from various developers, all of which are security and credit checked by us before they are allowed to seek investment from the Crowd. Property Moose has its own development company using our team of professional, experienced and fully insured partners to safely and efficiently renovate and manage properties for the Crowd. Look out for our logo so you know a property is one of ours!
- Do developers receive my money?
All properties advertised through Property Moose are acquired using our own solicitors and our own SPV vehicles that we run and manage. This means that the proportion of your investment contributed to buying the property will never be paid to a developer. However, the developer will receive any renovation fees required but must first account to us for the payments. Property Moose will manage the rental and sale of any property and the developer will have no access to the SPV’s bank account so your money is safe and secure.
- How do developers make their money?
Developers will spend a great deal of time and effort sourcing, negotiating and renovating a property and will receive 25% of any profit made on the relevant property. Again, developers will only make money when you do and will receive no fees until you make a profit!
- Do developers contribute to their properties?
Most developers do contribute towards some of the Crowd fund and you can see when a developer has contributed on each property information page. We believe in all the properties we advertise on our site and contribute to each property we develop. Look out for our logo so you know which properties are developed by Property Moose.
- Are you regulated by the FSA?
No. Property Moose operates completely in compliance with UK law and is a member of the Crowd Funding Accreditation Scheme which ensures Crowd Funding platforms are safe, secure and transparent and the UK Crowd Funding Association which helps to regulate Crowdfunding platforms in the UK.
- Who are your advisors?
Our advisors are very important to us as they ensure we operate each investment in a safe and secure manner. We only use the very best advisors, each of which must be fully insured and be leaders in their field. All our legal work is completed by Gordons LLP (www.gordonsllp.com) and we, and each of the SPVs, are looked after by Robinsons Chartered Accountants (www.robinsonslondon.com).
Developer Questions
- How do I advertise for funding?
First of all, sign up as a user and then click on our Seek Investment button displayed in My Account. From here you will need to follow the instructions and provide all the necessary information for us to verify your identity. You will also need to sign up to our terms and conditions. For more information please see our How Does It Work page.
- Are there any restrictions on the properties I can advertise?
No. Although, before each property is purchased, it must first have a full RICS valuation using our own surveyors which must confirm that the value is at least what the Crowd is paying for the property. The purchase must then be made using our own solicitor who will buy the property in a Property Moose SPV vehicle, owned by the Crowd of investors.
- What are your fees?
Each fund will incur a fund raise fee of 5% which will only be payable if the property is purchased and the investment goes ahead. This fee is added to the total fund value required and is paid by the Crowd. There will also be an administration fee of £1,500 charged to cover our costs in setting up the SPV vehicle. This will only be payable if the property is fully funded. This is significantly cheaper than mainstream debt finance and is much less hassle!
- Can I contribute to a property I’m advertising?
Yes and, in fact, you are encouraged to do so. Our users expect to see that developers are standing behind their own properties and each property is marked to display whether a developer has contributed. The more you contribute – the better it looks to investors as you are standing behind your own development. And of course, when your development is successful, you get to profit from your contribution!
- What do I get in return?
To compensate you for your time in finding, negotiating and developing the property, you will receive a fee of 25% of any profit the property makes.
- How are the properties rented after the renovation?
Property Moose, using our own agents, will manage the rental of a property. This ensures that we can be confident the right level of rent is being achieved and that the Crowds’ rental returns are secure.
- What is my role in the process?
As a developer, you are responsible for sourcing and negotiating the property purchase (although our solicitors will only be instructed to complete the transaction at the maximum value of the RICS valuation). Following the acquisition, you will develop and renovate the property as detailed in the investment offer, before informing us that the property is ready to be sold or rented.
- How will I receive my fee?
You will be issued a C Ordinary Share in the SPV company which acquires the property. This C Ordinary Share will entitle you to receive 25% of any distribution of profits from the company.
- What rights do I have as a shareholder?
The C Ordinary Share will carry no other rights other than to receive 25% of any distribution of profits. The SPV company will be managed by Property Moose using our own professional directors..