Enter Mercy Crowd. Mercy Crowd is basically the Funding Circle for property. You can either fund your house as a sponsor or you become an investor and fund someone else’s house. There’s not much information on how to fund your own house, but I imagine you could
There’s not much information on how to fund your own house, but I imagine you could crowdfund the rest of your mortgage – or the entire amount – as long as you have a substantial amount of money to start with. I’ll try and dig around for more information on this though.
There’s a bit more information on the investing side of things. If you become an investor, you earn interest on the money you put down through the rent paid by the tenant. If the house gets sold, you also get a return on your investment that way. Mercy Crowd estimates that you can get between 4% and 10% interest each year, although this would obviously depend on the city and location you are investing in.
I previously wrote about Funding Circle as a good return on investment, but I’m still waiting to see any real returns on it. Besides, people always say that you shouldn’t put all your eggs in one basket – right? Plus, a 4-10% return is very attractive – although not quite as good as Funding Circle’s predicted 8%. Although the interest is paid every month.
I think I’m going to research this a bit more and see if anyone has had any experience with it before I commit any money to it. But it’s definitely one way to diversify and increase my returns each month without committing too much to something like Funding Circle, especially as I haven’t seen it actually work yet.