With record-breaking low interest rates, your money could be going down in value if it's sat in a savings account. More and more people are looking for ways to invest their money wisely and get a better rate of return whilst investing in something more interesting than a bank. That's where angel investing comes in...
Angel investing is where you loan money to a property investor for a fixed term at a fixed interest rate. It is a better rate of return than you get with the bank and it's a great way to enjoy property returns without the risk or hassle. For example, £100k at 5% pa for 3 years.
It works well for property investors as it's one of the most accessible financing options and it's relatively low cost financing. As with any borrowings, though, you need to know how you're going to pay it back, and that's a key factor with angel investing.
Done in the right way, it can be win win.
You can invest anything from £100k and for one year minimum. There is not upper limit on how much you can invest and you're welcome to leave your investment open-ended.
We offer 5% pa for £100k for one year, and can offer higher rates for longer term and higher investments amounts.
It is usually a personal loan between the Angel and me but each Angel Investment is reviewed on a case by case basis. No, the loan is not secured against a property, mainly as it's time consuming and costly to do (plus lenders don't like it). We prefer to offer better rates of return instead.
Yes, we have a legal contract in place drawn up by our solicitor and we would recommend you take the appropriate legal and financial advice.
We buy houses direct from vendors so buy them at a discount and we renovate the properties to add value. This allows us to buy a property using angel funds and then refinance after a year or two (or more) to pull the money back out again to repay the Angel. Sometimes, we can reinvest the money again before repaying the loan. We also have plan B, C and D in case things don't go according to plan.
The loan interest is usually taxed as investment income but please speak to a qualified accountant for the appropriate advice.