Accessibility = 8.4
Ease Of Investing = 8.8
Fee Structure = 9.9
- Investors aren’t charged any fees for using the service
- Potential returns of 8-12% p.a.
- Innovative Finance ISA (IFISA) available – providing tax free returns on investments
- High minimum investment of £1000 required
- Investment performance is not covered by the Financial Services Compensation Scheme (FSCS)
CapitalRise review – CapitalRise is a purpose-built platform, designed to provide investors with direct access to premier, property-backed real estate investment opportunities.
Keen to find out more? Take a look at our CapitalRise review.
At A Glance
Founded in an effort to revolutionise the property investment market, CapitalRise aims to provide prime property development investment opportunities for all eligible investors – not just large institutions and affluent investors.
Designed to be user-friendly, investors can access the platform to check out the investment opportunities on offer – in the form of property loans funding professional prime property developers in London and the Home Counties.
The company founders have put together a team of professionals from various sectors including property development, technology and financial services. Together they identify investment opportunities in prime property development for their clients.
Our CapitalRise review indicates the founders have complete confidence in their abilities to offer top-notch investment, they even invest their own personal finances into every opportunity featured on the platform.
Investors can access lucrative property deals for an investment of as little as £1000 and can benefit from attractive forecast returns of around 8-12% p.a. Clients can also take advantage of tax-free returns by utilising the CapitalRise Innovative Finance ISA.
What Fees Do CapitalRise Charge?
Our CapitalRise review indicates that the founders have quite a lot of property development experience under their belts, and it’s apparent that they want CapitalRise to be accessible to developers and investors.
To that end, CapitalRise doesn’t charge investors a fee for using their service.
Instead, they charge a fee to property developers who are looking to raise funds via the website. However, the fee is kept purposely low to attract the best investments.
As with most providers, there is a fee associated with the CapitalRise Innovative Finance ISA – if you do take one of these out it will cost you £35 to transfer it to a different provider. If you choose to sell your investment on their Bulletin Board, you’ll be charged a 1.5% fee if it sells.
How Safe Are CapitalRise Investments?
We all know the drill, whenever you invest you always need to keep in mind that there’s always a small element of risk. Returns aren’t guaranteed and the real estate market goes through peaks and troughs. It’s subject to economic, political, geographical, financial and environmental issues – just like other sectors.
There is also a small risk of the developer not being able to repay capital or pay income due.
In this case, the property might be put up for sale, or CapitalRise always takes a first or second legal charge over the property they are lending against.
Therefore in the event a developer cannot repay their loan, CapitalRise have step-in rights to take over the development and see it through to practical completion, or force the sale of the asset to recoup capital– this will obviously take time and you might not receive all of your money.
This might sound disconcerting but it’s worth remembering that the founders of CapitalRise are investing alongside you, so they consider the investment to be a viable option.
How Investing With CapitalRise Works
Before you get to enter the deal room and check out what’s on offer you will need to apply to become an eligible investor. The sign- up process is relatively painless.
First off you need to ascertain what type of investor you are – a restricted investor, sophisticated investor, high net worth investor or a corporate investor.
You will find an overview of each outlined on the platform so don’t worry if you’re not sure with category you fall into.
You will also need to confirm that you understand the associated risks. Following that you just need to prove you are who you say you are (this can be done electronically). Once you’re accepted you will be ready to get going and can check out those investment opportunities.
Our review indicates that CapitalRise are rather picky when it comes to the investments they offer. Understandably plenty of developers approach the company, but they have to meet stringent criteria before CapitalRise will even consider underwriting a property loan.
Due diligence is given to each proposition before it is studied by the credit committee.
If an investment is considered viable, CapitalRise post the opportunity to the “deal room” on their platform. Clients can peruse and review all the details relating to an investment and decide whether or not it’s right for them.
When you’ve found your chosen investment, you can carry out your own due diligence checks for added peace of mind. If you’re happy with everything you can transfer funds and start investing.
At the end of the term you can take your money, along with your returns. You can either withdraw this from your account or you can choose another opportunity and reinvest.
CapitalRise Reviews From Customers
Great business, very professional and seasoned investors, helpful and prompt investors relations, and solid due diligence without chasing deals.Jay Kay via Trustpilot review
Great website and customer service makes a first time investment easy and with clear information.Stephen via Trustpilot review
Positives Of CapitalRise
We’ve provided a brief overview of what you can expect if you use CapitalRise, now let’s investigate the positives and find out what the company can do for you:
- Three professional founder members with over 75 years of collective experience in property development, property investment, technology and finance.
- Founders invest their personal finances into every investment project – providing investors with peace of mind that opportunities are viable.
- Knowledgeable team of experts on hand with over 100 years of experience between them – which all adds up to plenty of know-how.
- Simple application process and lots of support helps to make investing in property easy and quick.
- Rigorous due diligence process and underwriting to select only the best investment opportunities for clients.
- Potential returns of around 8-12% p.a.
- CapitalRise offer clear information on all investments, outlining location, property details, sales/letting data, developer history and financial appraisal
- Investors aren’t charged any fees for using the service.
- Investors can take advantage of the Innovative Finance ISA (IFISA) – providing tax free returns on investments.
CapitalRise Finance Ltd is an Appointed Representative of Sapia Partners LLP, which is authorised and regulated by the Financial Conduct Authority, registration number 550103.
Negatives Of CapitalRise
Unfortunately, there are one or two negative points that our CapitalRise review has found that you should be aware of:
- As an investor it’s still wise to carry out your own research or ask for advice from an independent professional before making an investment – this can be time-consuming.
- Investors are putting their money into loans that are secured against prime real estate- as with all investments there is an element of risk, investment values can rise, and they can fall.
- We live in an unpredictable world – the economic climate can be unstable, and events often occur that are beyond our control. This can have an adverse effect upon an investment.
- Investment performance is not covered by the Financial Services Compensation Scheme (FSCS).
A Short History Of CapitalRise
Founded by Uma Rajah, Alex Michelin and Andrew Dunn CapitalRise was formed with a view to revolutionising the property investment market. The trio brought together a wealth of property development and FinTech expertise, and shared a common goal – to open up the property investment market.
CapitalRise was developed to allow everyone to get involved in the lucrative property deals that are normally reserved for rich investors and big-time organisations.
The company set about building a skilled team and identifying attractive investments relating to various properties, including industrial, residential, commercial, and those relating to the hospitality industry.
Nowadays CapitalRise are doing very well, since its launch the company has lent more than £46 million to property developers, with the property professionally valued at over £330million. Investors seem to be seeing a good return on their money and the team continue to work hard to identify lucrative opportunities.
CapitalRise Review – Summary
CapitalRise offers a great opportunity to those who do not have endless pots of cash to invest. You’ll need £1000 to get started, but the application process seems very straightforward.
The potential returns, at between 8 to 12% p.a., seem attractive too, as does the added availability of the Innovative Finance ISA (IFISA) with its tax -free returns.
Our CapitalRise review indicates that the team draw on their related experience in related fields to seek out the best investments. Add to this that the company founders are happy to “put their money where their mouth is” by investing their own money alongside their clients, and we come to the conclusion that CapitalRise are motivated to find only the most viable of investments.
Yes, there are risks, but that’s the case with any investment. All-in-all we feel CapitalRise could provide its clients with the chance to get involved in some great deals.
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