Why should I fund my projects through InvestSure's platform?
InvestSure provides a faster response to your funding requirements as well as access to a much wider pool of lenders and lower costs for funding than from traditional lenders. We offer more flexible funding than traditional lenders with the potential for 100% funding. We structure your funding requirements and match the best debt funder with mezzanine finance/equity to give you the lowest cost funding that matches your Loan-To-Cost needs and timescales.
How much does it cost to become a member?
There is no joining fee for developers.
How much does it cost to arrange funding?
InvestSure charge a fee for arranging funds for a project, which are only due if funding is successful. The fee varies depending upon the Loan-To-Cost (LTC) levels and type of funds being raised. The InvestSure fee is in addition to the funders own fee structure and this will vary from lender to lender.
What is the minimum and maximum amount I can raise?
Ideally the minimum funding for a project we will raise is £1m and there is no maximum. We will, however, consider applications for investment below £1m for equity or mezzanine requirements above £250,000.
Will it be cheaper to work directly with InvestSure or can I still use my current intermediary?
The costs of working with InvestSure will be the same if you come directly to us or use an intermediary.
How does funding work?
To begin the developer, or their broker, registers to become a member and accepts our terms of business and then they can then load their first project. To load a project you will need the following documentation (*indicates essential);
- Project appraisal and cashflow*
- Proof or ownership, or contractual option/agreement, on the land/property*
- An overview of the developer*
- Any surveys undertaken
- Any comparisons with other properties in the locality
- Contractor tender documents that support appraisal
- Any research undertaken
The more information the more likely your project will attract investors. Once the documentation is loaded it then undergoes due diligence which verifies the information on behalf of the investors. This process takes 48 hours, and once approved the project can then go live. An alert immediately goes out to all investors who match your project’s criteria and they can then view the information and make offers to syndicate (join with others to fund) or they may wish to fund the whole amount. Their bids come directly to you. If you accept, then the process goes through the normal legals to concluding drawdown.
When can I draw down the money?
This depends on whether the investment has been raised via our syndication process or via a single funder. Debt normally takes between four and six weeks from offer. For syndicated equity or mezzanine finance, once the amount has been achieved and the investors have signed contracts, the funds are transferred to the developer.
Will I be required to give a personal guarantee?
This is highly unlikely and if any security is requested it will be detailed and very clear in the project information.
When do I pay InvestSure's fee?
We invoice our fee when the contracts are signed. The fee is due for payment at completion. If the developer does not complete when funds are agreed and available they will be charged a drop-out fee of 25% of the total fee.
Which investor can see my project?
Only those investors who have asked to see investment opportunities matching your criteria will see your project. We can tailor the audience for a project which means you can choose which investors you don’t want to see it, as well as ensuring that your project is not being overexposed. We agree a strategy with the developer before the project goes live and ensure that we deselect any investors where there might be a sensitivity.
Will other developers or brokers see my project?
No, only investors can see investment opportunities.
May I amend a project once it's loaded?
You may amend a project right up until it has been approved and has gone live.
Do I need all the information required for a project to be considered for InvestSure?
You may load all the information you have and save a project to complete at another time. However, we will not review a project until all the information has been uploaded.
What if I haven't secured the land yet?
We will not launch any investment opportunity on the platform unless it is secured by exchange, option or purchase. However, if you wish to raise funds for planning we do have off-market options that may be available
If I already have the senior debt may I apply just for the equity?
Yes, you may raise any part of the project cost.
How does syndication work?
Investments can be syndicated and we will work with you to establish whether this is a feasible option to raise funding for your project or asset. If it is open for syndication the contracts will be displayed on the platform for investors to consider. Syndication is used predominantly for equity raises to allow investors to spread risk across multiple projects and keep the cost of equity down to 25% returns if we can. We can also syndicate mezzanine finance to control costs and again allow the spread of risk. We will discuss the offer and returns with you to ensure it is suitable for your project
Why should I become a member of InvestSure?
Becoming a member provides experienced property investors with access to property investment opportunities that are not available elsewhere or to the public. This is not a crowdfunding platform, it is strictly for the use of professional individual property investors, private investment houses, family offices, corporate funders, institutions, etc. Investor members have access to pre-vetted opportunities. Investment in a project can be syndicated or you can invest 100% of the capital required.
How much does it cost to become a member?
There is no joining fee for investors.
What are the transaction fees?
You don’t pay any fees to invest and we don’t deduct any costs from your returns. We charge the property developer for arranging their loans/investment.
How can I be sure that the opportunities I see are trustworthy?
Every opportunity listed on the platform has undergone screening to check its validity, that the developer is creditworthy and the scheme is sufficiently profitable to achieve returns. We ensure that the developer has secured the site, either by option or exchange. However, InvestSure is exclusively available to professional investors only who will conduct their own due diligence and we do not wish to replace that process.
What kind of investment opportunities will I see?
Funding of all types of property and property developments, senior debt, mezzanine finance, stretched debt or equity, refinancing or a bridging loan, co-investment in assets, opportunities, joint ventures or corporate bonds.
How do I select the right opportunities for me?
You can perform searches based on specific criteria according to your investment needs, for instance a particular asset class or location to invest in. Your choice should reflect your appetite for risk and the length of time that you can keep your money invested. We strongly advise that you take advice from a professional if you are in any doubt. Investments in real estate are illiquid and you can lose money if the scheme fails at any time.
How will I know when new investments are launched on the platform?
You can save your investment criteria on our platform and you’ll be notified by email when an opportunity is launched that matches one of your criteria.
What range of investment size will I find on the platform?
Senior debt opportunities will range from £1m to over £100m and are more suitable for institutional funders and private wealth and family offices. Our equity and mezzanine investment opportunities allow private investors to syndicate together, or invite their own syndicates to invest together, at a minimum investment size of £25,000 with no cap. The minimum equity or mezzanine opportunity will be over £250,000 with no ceiling.
What is the minimum amount I can invest
The minimum investment is £25,000 for equity or mezzanine syndicated opportunities. Our senior debt funding starts at £1m as the minimum.
How does syndication work?
When a project or asset is open for syndication, the amount to be raised is clearly given and an indication of the amount already funded will be displayed together with the contracts and all the due diligence for you to consider. These are opportunities for you to join with other professional investors to spread risk across multiple investments. You select the projects or assets you wish to invest in, you register to become a member and then pledge the investment you wish to make. You will be asked to supply KYC documents, and transfer your funds to your wallet and once the full amount of the raise has been reached, you will be notified and your money will automatically be transferred into your investment. You can then be kept informed on the progress of your opportunity from your members dashboard. Once the project has completed your initial investment plus your return will be added back into your wallet on the platform.
If I choose, may I invest alone?
Yes, you can choose to invest 100% of the capital required for a project.
What protection does my money have?
If you are investing equity, you have shares in the development company which will hold the asset being developed. However, in almost every case the senior debt will take a first charge over the asset and so equity investment is at the highest level of risk as it has no security until the development value exceeds the level of debt taken out on the project. InvestSure conduct significant due diligence on all the projects presented on the platform, but we do not wish to replace our investors own due diligence to satisfy themselves of the risk involved. Real estate investment is illiquid and opportunities can increase or decrease and so we recommend you invest with extreme caution and take advice if in any doubt. mezzanine opportunities will have the benefit of a second charge after the senior debt has been repaid. This is a reduction in the risk levels of investment but this is reflected in the return you can expect.
What sort of returns may I expect?
The return you receive will depend upon the amount you invest and the level of risk. The minimum return is 5% on debt which can raise to over 30% if investing in equity. Each opportunity clearly states the expected return. Please note that returns are not guaranteed.
When will I receive my interest if I invest in a project?
At the end of the project the original principal amount invested will be repaid along with your return. Please note that returns are not guaranteed.
Does InvestSure manage the money invested?
No, the money is paid directly to the developer, InvestSure does not touch the money at any stage.
Is InvestSure regulated?
InvestSure Property Platform Ltd is an appointed representative of Share In Ltd which is authorised and regulated by the Financial Conduct Authority (FCA) (FRN 603332).
Brokers, Agents & Intermediaries
Why would I put my projects/assets through InvestSure?
InvestSure has access to hundreds of sources of funds instantly, reducing the time spent in trying to match investors’ and developers’ needs. We also create a little competition to intentionally attract the best rates.
How are the fees structured?
In order to ensure that InvestSure does not compete with Introducers, but instead works with you, we have a standard fee structure that we split with Introducers dependent upon their level of involvement.
How many people will see each opportunity?
This depends upon the type of project and the level of exposure it may have already had. We can control who sees it and when, and we can deselect investors and funders who may have already seen it. If we are raising equity or mezzanine finance alone we can allow only private investors and family offices to see it and switch off all institutional investors and funders and vice-versa.
Can I limit who sees my opportunities?
Yes, we can tailor the audience for a project which means you can choose which investors you don’t want to see it, as well as ensuring that your project is not being over exposed in the market.
Will other developers, brokers & sellers see my opportunities?
No, only investors can see investment opportunities.
What is the process?
When you register as an Introducer you’ll be given access to a dashboard where you can add details of clients you think may benefit from our platform and we’ll send an introduction to each client inviting them to join the InvestSure marketplace and mentioning that you have referred them. If they conduct business with us in the next two years we will share 10% of our fee with you as a sign of our appreciation. If you are an Introducer you can load your client’s projects directly. If you’ve met the client and been to the development site, we will share the fee with you on a 50/50 basis.
How do investors select the opportunities?
The InvestSure platform allows investors to perform searches based on specific criteria according to their investment needs. The platform presents the range of investment opportunities available according to those criteria. When an investor finds an opportunity they are interested in they can download the information pack and/or request further information or a site meeting before deciding to invest.
How do you collect your fees?
We invoice the developer for our fee when the contracts are signed with the investor/funder, but it isn’t due until completion. As soon as funds have cleared our account we pay the introducer their fee.
What type of funding do you arrange?
We arrange funding for all types of property and property developments, of any asset class across the UK; senior debt, mezzanine finance, stretched debt or equity, refinancing, bridging, co-investment in assets, opportunities, joint ventures or corporate bonds.
When do I get paid?
As soon as the developer (or funder if they have included the cost in their drawdown) has paid the fee, and it has appeared in our account, we pay the introducer their fee, on the same day if it is possible.
May I remove a project once it's loaded?
If you remove a project once it has gone through our due diligence process, before it has been funded, we may charge a small administration fee to cover our costs.
What happens if one of my clients comes to you directly?
If you are already registered with InvestSure and one of your clients, which you have added to your dashboard, comes to us directly we will inform you immediately of the situation and discuss with you how best to proceed, but you will still receive your fee for up to two years if the client no longer wishes to remain with you. If the client has chosen to be represented by a new introducer then we must work with the new party as we can only allocate one introducer fee per client.
What is crowdfunding?
Crowdfunding is a method of funding a project or organisation by pooling the money of individual investors. It can provide a number of benefits beyond the financial including marketing, audience engagement and feedback. Crowdfunding allows good companies which don’t fit the pattern required by conventional financiers, to break through and attract cash. There are a number of types of crowdfunding but the 3 main categories are:
- Reward or donation based crowdfunding – these are not investments
- Loan crowdfunding (often referred to as peer-to-peer loans or debt crowdfunding)
- Equity crowdfunding
Want to know more?
Please visit the UK Crowdfunding Association – ShareIn are one of the founding members.
NESTA have written a comprehensive introduction to crowdfunding. You can read it here.
What is equity crowdfunding?
Equity crowdfunding is the process whereby individuals or the “crowd” invest in an unlisted company (a company that is not listed on a stock market) in exchange for shares in that company.
Equity crowdfunding is a great way to match companies who need funding with individuals who wish to invest. Investors become shareholders and have partial ownership of a company. Individuals get a share in the future success of a company they believe in. If the company fails investors can lose some, or all, of their investment.
Is equity crowdfunding a regulated activity?
Yes – equity crowdfunding is a regulated activity in the UK and each country across the world has specific regulations regarding the adoption of equity crowdfunding.
The Financial Conduct Authority (FCA) in the UK issued a Policy statement (14/4) The FCA’s regulatory approach to crowdfunding over the internet, and the promotion of nonreadily realisable securities by other media, in March 2014.
In the US investment is restricted to Accredited Investors.
Who are ShareIn?
ShareIn Limited are the company that InvestSure are working with to deliver their equity crowdfund. ShareIn are authorised and regulated by the UK Financial Conduct Authority (FRN 603332).
What are the main risks associated with equity crowdfunding?
Investing in early stage companies such as InvestSure involves risks, including loss of all your capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. This type of investment is only for investors who understand these risks.
A full risk warning can be found here.
Could I lose more than the amount invested?
You can lose all the money you invested but nothing more.
How much return could I expect on my investment?
You can lose all the money you invested but nothing more.
I'm a UK Tax Payer - What is EIS?
For UK tax payers there are some very generous tax breaks to encourage investment in early stage companies such as InvestSure. The scheme is referred to as the Enterprise Investment Scheme (EIS) and the benefits are listed below.
There is no guarantee that this tax relief will apply to an investment in InvestSure as conditions apply and you are recommended to take your own tax advice.
1. Income Tax Benefit From EIS Tax Relief
Tax relief of 30% can be claimed on investments (up to £1m in one tax year) giving a maximum tax reduction in any one year of £300,000, provided you have sufficient Income Tax liability to cover it.
The shares must be held for at least three years from the date of issue or the tax relief will be withdrawn. EIS allowances are allocated individually; therefore a married couple could invest up to £2 million each tax year.
2. Capital Gains Tax Exemption (CGT)
Gains are exempt from CGT if the shares are held for at least three years and the income tax relief was claimed on them.
3. Loss Relief
If shares are disposed of at a loss, the investor can elect that the amount of the loss, less Income Tax relief given, can be set against income of the year in which they were disposed or, on income of the previous year instead of being set of against any capital gains.
4. Capital Gains Tax Deferral Relief
Payment of CGT can be deferred when the gain is invested in shares of an EIS qualifying company. The gain can be made from the disposal of any kind of asset but the Investment must be made one year before or three years after the gain arose – connection to company does not matter. Unconnected investors are eligible for relief from both Income tax and CGT referral relief.
For more information, please see the HMRC website.
Who can invest?
People resident in the United Kingdom who are either a “Certified High Net Worth Individual” or “Self-Certified Sophisticated Investor” (as these terms are defined in The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)) or who can confirm that they will invest less than 10% of their net assets in this type of investment as a “restricted investor” (as this is defined in the FCA’s Conduct of Business Sourcebook at Chapter 4.7).
People resident in the United States of America who are “Accredited Investors” as that term is defined in Rule 501 under the Securities Act of 1933.
You must not participate in the New Fundraise or make any other investments via the Company’s website if you do not meet any of these criteria and you must not complete the online registration process as an ‘INVESTOR’.
Will people be able to see if I invested?
No. InvestSure would like to keep their list of investors private.
I am domiciled outside of the UK and EU, can I invest?
For a significant investment, we would be more than happy to enter into separate discussions as to whether we can accommodate this. It will be dependent on your particular circumstances and the regulatory framework in your country of residence. Please contact us at Team@ShareIn.com if this interests you.
When do I pay for the investment?
The money will only be taken from your account when the InvestSure deal completes. We use a payment provider called GoCardless. GoCardless is a Bacs approved bureau and is regulated by the UK Financial Conduct Authority as an Authorised Payment Institution. We’ve looked into the safest and most cost effective way to collect money from investors and GoCardless is the best option. Credit cards, debit cards and PayPal all charge more.
You’ll be issued with a copy of the legal agreements before the funds are transferred and you can cancel your investment
The funds will be taken into ESCROW until the deal completes – you can cancel your investment before the deal closes and the funds will be returned.
How am I categorised as a "client" for regulatory purposes?
In order to invest via this platform you must be categorised as a “client” for regulatory purposes. All investors are required to successfully complete the “Appropriateness Test”. All UK individual investors are treated as retail clients.
All UK investors using this platform are eligible to complain to the Financial Ombudsman Service or to claim compensation under the Financial Services Compensation Scheme (although people cannot claim FSCS compensation for investment losses).
Different regulations apply in different regions and before being able to invest you will asked to confirm that you meet the eligibility requirements in your particular region.
What are the fees?
There are no fees for making an investment in InvestSure.
InvestSure pay the fundraising costs associated with this funding round.
Can I cancel my investment offer?
You can cancel your investment offer at any point before the funds are transferred by emailing firstname.lastname@example.org
How do I make a complaint?
We want to give you superb customer service but sometimes things might go wrong. We can usually resolve most issues straightaway, so please email us on email@example.com to tell us how we can help. What you’ll need to tell us so that we can help you:
- Your personal details,
- What’s gone wrong and
- What you want us to do to put things right.
- A consumer
- A business employing fewer than 10 persons that has an annual turnover that doesn’t exceed €2 million
- If you are unsure whether the FOS will consider your complaint, please contact them directly for advice. The service the FOS provides is free and impartial and contacting them at any stage of your complaint will not affect your legal rights. The contact details for the FOS are:
The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
We’ll be in touch with you as soon as we can and let you know what will happen next. We’ll try to resolve your complaint within 3 working days of receipt – if we’re unable to do this we will write to you acknowledging that we have received your complaint and the next steps that will be taken. For more complex issues it’s likely that we will need longer to look into what’s happened and we may ask you for further information to help us reach an outcome. We’ll give you regular updates. And once we’ve dealt with your complaint, we’ll go back and see what we can learn from your experience to improve our service.
If you’re unhappy with the outcome UK Residents can ask the Financial Ombudsman Service (FOS) to carry out an independent review of your complaint. In any event, you have the right to ask the FOS to review your complaint if we’ve been unable to resolve it within 8 weeks. The FOS can help UK residents with most complaints if you are:
Their phone numbers are +44 (0)300 123 9123 or +44 (0)800 023 4567.
You can send an email to: firstname.lastname@example.org
How do I make a Subject Access Request (SAR)?
One of your rights under data protection law is the right of access to the personal data that we hold about you. The process of requesting your data is called a Subject Access Request (SAR).
How to ask for a SARhere.
Please include the following in your SAR:
- Your full name, postal address, email address and telephone number
- The statement “I the undersigned and the person identified above hereby request that Investsure (1) inform me of the personal data held about me OR (2) provide me with a copy of the personal data Investsure hold about me.”
- [If request made in writing] Signature and date
What you can expect from us
Before releasing personal data we may have to take steps to confirm your identity. This could include requiring a piece of photo identification or answering a number of security questions related to your account.
Once we verify your identity, we will log your request, and we will search all databases to find any personal data we currently hold.
We will provide an electronic copy of your personal data within a month of your request.
Please be aware that there are circumstances in which the law allows us to extend the response time or charge an administrative fee. In either case, we will inform you by email within one month of receiving your request.
What you can do once you receive the data we hold
Once you receive the data we hold, you have the right to ask for data to be corrected or erased.
Please be aware that we may not always be able to erase personal data we may hold about you. If your personal data relates to an investment you have made, financial services regulation requires us to keep certain information on file for a period of 5 years.
In the event you have a complaint about the way we have handled your personal data or your SAR, you can count on us to take your complaint seriously.
If you feel your data protection rights have been violated and you do not feel you have had a satisfactory response from us , you have the right to lodge a complaint with the Information Commissioner’s Office (ICO).