A blue street sign that says ethics on it

Is Your Property Developer Partner Borrowing Ethically?

by Max Rayner • 29 November 2024
What To Watch Out For! You’ve got the cash. Property developers have the projects. But if you’re looking to invest without rolling up your sleeves and getting your hands dirty, you’re probably thinking, “How can I make money in property without breaking a sweat?”
A person is holding a model house in their hands.

Impact Investing And The UK Property Sector

by Nicky Diver-Clarke • 8 November 2024
Choosing investments that align with your values: A quick Google search will show that ethical and purpose-driven property investing is growing in popularity. Whether funding projects that help underrepresented communities or supporting eco-conscious housing developments, impact investing is a fresh strategy for modern investors.
Show More
Logo

PropertyAngels.Life

Find Property Investor Confidence Faster

A black exclamation point in a circle on a white background.

Property media & introducer platform for Angel Investors including high net worth, sophisticated investors, SSAS trustees and limited companies

Risk warning: PropertyAngels.Life is for angel investors who can afford the risks of loss associated with lending to UK property developer limited companies. Conduct your own legal and financial due diligence before lending and seek professional advice if required.  Read Investor Risk Statement here

Investor Risk Statement

  1. You could lose the money you invest.
  2. When personal loans are made to borrowers who can’t borrow money from traditional lenders such as banks, these borrowers have a higher risk of not paying you back.
  3. Rates of return are not guaranteed and you could earn less money than expected. A higher rate of return means a higher risk of losing your money.
  4. An introduction fee of 1-3% of the amount you lend is payable by the borrower to PropertyAngels.Life Ltd. This adds a financial strain on the overall amount that the borrower needs to pay back to you as an investor. Make sure you understand the financial risks of the overall project before you invest.
  5. Market valuations of property may go up or down. Ensure that you have taken appropriate financial advice on the numbers for the intended project before investing.
  6. You are unlikely to get your money back before the fixed loan term agreed.
  7. Depending on the terms in your agreement contract with the borrower, you should be prepared to wait until the full term agreed for your money to be returned.
  8. Consider spreading your risks.
  9. Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
  10. The investment strategy could fail.
  11. If the development project you invest in fails, it may be impossible for you to collect money on your loan. Even if the developer has plans in place to prevent this from happening, they may not work in a disorderly failure.
  12. You may not be protected if something goes wrong.
  13. Obtain independent, legal and financial advice before agreeing to any investment arrangement. Make sure you understand the risks associated with the securities you choose to accept from the borrower.
  14. Conduct your own due diligence.
  15. Property development projects are complex by nature – schemes often complete early or run late.


Share by: