Don’t get a mortgage, get a crowd

Can Crowdfunding allow you to buy a home without Help from the banks.

Note: If you’d like some background to Crowdsourced landlords, please read my previous commentary.

One in five homes are now owned by the estimated 2 million landlords operating in the UK

This idea, of people using the crowd to buy their home, came from watching a pitch by Bethan Jenkins of Crowdlords.

When I first met her, I vehemently criticised their approach. I thought Crowdlords.com were missing the bigger opportunity by focusing on bringing together both the demand side (landlord-wannabes) and the supply (people with a property in mind and not enough money for a deposit).

I was wrong. I just didn’t see the true innovation: this is Help to Buy, but funded by the crowd, rather than Government. This is massive!!!

No one need ever worry about renting ever again. Find a house to buy, put it on a platform like Crowdlords with the rent you’ll pay to your co-owners and (if you get funded) you’re now free of landlords forever.

Even better, as time goes on you can buy back shares in your home to reduce your rent payments.

Crowdsourced landlord platforms are now ten-a-penny. It’ll be interesting to see which ones crack both the model and the marketing.

While it is early days for the property crowdfunding, I am in love with the notion of being able to buy a home without going to the bank for money.

And on the latter point of marketing, Bethan and Co have both the experience and ‘the’ brand that will define this space.

Goodbye nasty landlord. Hello Crowdlord.