“Property crowdfunding offers a transparent mechanism for developers to raise money and for investors to invest in property” – David Johnstone

Welcome back! Today on The Property Regeneration Show, we continue the conversation on the wonders of property crowdsourcing with David Johnstone. If you’ve missed the first part, then make sure to check out little and yet insightful introduction to David, his career, and crowdsourcing.

In this second part, we get to the nitty-gritty of the stuff. If you’re having the difficult time to choose, then let David help you. There are different ways on how you can structure the investment vehicles. Also, it’s up to the investor if they are comfortable investing based on the terms.

David also shares how he helps developers and investors about it in his masterclass, which he’ll give more information about when you tune in!

KEY TAKEAWAYS 

• There are institutions like the Financial Conduct Authority (FCA) who are to monitor the compliance and implementation of regulatory laws when it comes with crowdfunding. Developers must understand what the law entails.


• Types of crowdfunding in the UK:
  
  
  
  • Loan-based/debt-based
  
  
  • Equity-based – offers an opportunity to purchase in a SPV
  
  
  
  


• Every developer and investor must know how the crowdsourcing will work in both ways. David’s crowdsourcing masterclass offers a thorough learning experience for both parties.


• Why are large organisations moving away from the traditional kinds of funding? When credit crunch (decline in lending activity) happened, it was a clear sign for them to find other ways of funding.

BEST MOMENTS

• “Developers have to be aware of compliance.”


• “As we talk to developers and investors, there was a lack of understanding and a lack of knowledge on crowdsourcing.”


• “Crowdfunding means that you can bring it to your tribe of people, present it in a compliant manner, and if you’ve got a good project, story, and credibility, you can build your investor tribe.”

VALUABLE RESOURCES 

• The Property Regeneration Show podcast


• FCA: Financial Conduct Authority - https://www.fca.org.uk


• MasterclassCrowdfunding.com

ABOUT THE GUEST

David Johnstone has a wide range of business experience ranging from advertising, marketing, direct sales and 20 years in property investment. He has been involved in the BTL market in UK, overseas property development and raising finance for UK property projects and while working with Stuart Law's Assetz Group, set up a global network investing in UK property.

Since 2013 David has worked with the LEO group in building and managing a high-end property portfolio with assets in Germany, Spain and Portugal.  In 2015 David oversaw the launch of REWARD based crowdfunding company LEOcrowd and in 2017 started www.MasterclassCrowdfunding.com and consultancy service for the crowdfunding industry.

LEOpropcrowd.com brings together the years of experience.

David is an A Licence UEFA Football coach and has travelled to over 50 countries during his life, including operational service as a British Army Officer in the Reserve Forces.

ABOUT THE HOST 

Rachel enjoys orienteering with her husband, swimming or playing the Ukulele in her spare time. she has over 11 years’ experience in the construction industry delivering projects up to £300 million within budget, time and quality; therefore, the agreed return on capital employed 

  CONTACT METHOD 

• You can contact Rachel Gros on contact@propertyregeneration.co.uk


• 07495 451127 

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