Crowd Funding & Lending Platform The House Crowd’s Collapse

Crowd Funding & Lending Platform The House Crowd’s Collapse

Nothing ever changes. We have seen this in the past. These crowd funding and peer lending are supposed to be regulated. However tell that to the investors who might have lost money with the house crowd. We met with the directors of the house crowd back in 2015 and sold them 10 or so of our social HMOS. They bought them right as these social HMOs were in Salford and the prices shot up dramatically in value.

However their investors would have been much safer just buying a property in their name. We personally do not think there is anything safer in the property market other than these 100 year old terraced houses not over leveraged and preferably with social housing contracts. Too many working tenants did not pay for the last 14 months and landlords were neither able to evict or collect rents.

According to Business live article

The details surrounding the collapse of a peer-to-peer lending platform headquartered in Greater Manchester and how much it owed to creditors have been revealed for the first time.

Altrincham-based The House Crowd entered administration earlier this year with Frank Ofonagoro, Jeremy Woodside and Frank Wessely at business advisory firm Quantuma being appointed as joint administrators, with consent from the FCA. According to the documents filed with Companies House, the administration process was started by The House Crowd’s non-executive directors following concerns about its “viability and ability to continue to fund its operation”. Quantuma also said that the administration is an an early stage and is not able to comment on the estimated outcome for creditors.

Can you imagine being one of the House Crowd investors.

Good Gd!