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Calling The Top - Property Partner - The Kickstarter Of Btl

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Address

https://www.propertypartner.co/properties/UKW72HQ001#/map/UKW72HQ001

'Contracts were exchanged on August 24th and purchase completed on September 7th 2015. The 'resale' market for this property will open on or before September 30th 2015.'

Last sold price data (pre latest update)

Property type: Terraced house | Tenure: Freehold | Last sale: £395,000 | Sale date: 21st Sep 2010

http://www.zoopla.co.uk/property/11-murray-court/st-margarets-road/london/w7-2hq/25093818 (and old listings in archive)

RM Sold Prices re no.11: £395,000 Terraced, Freehold 21 Sep 2010

£355,000 Terraced, Freehold 20 Dec 2006

RM for sale listing still live (awaiting EA removal ?)

http://www.rightmove.co.uk/property-for-sale/property-51463763.html

RM Rental Asking Price: £2,050 pm

http://www.rightmove.co.uk/property-to-rent/property-54338216.html

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Looks like they are buying with cash.

At current prices, I think investors are going to get burnt.

need to buy some Chelsea pads; prices flat for last 12 months; rental yield close to 2%

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I've just read this article about Property Partner and worryingly I would say they are a new greater fool at the end of the chain of fools.

http://uk.businessinsider.com/property-partner-proptech-2016-2

It's not that they are stupid, worse that they've found a business model that rewards them for buying properties with no penalty for any loss in their value.

The crowdfunding platform incentivises them to make as many transactions as possible and get rich from the upfront investment fees and the rental management fees. Their income stream is safe, while the investors take all the risk of falls in value of the property portfolio.

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I've just read this article about Property Partner and worryingly I would say they are a new greater fool at the end of the chain of fools.

http://uk.businessinsider.com/property-partner-proptech-2016-2

It's not that they are stupid, worse that they've found a business model that rewards them for buying properties with no penalty for any loss in their value.

The crowdfunding platform incentivises them to make as many transactions as possible and get rich from the upfront investment fees and the rental management fees. Their income stream is safe, while the investors take all the risk of falls in value of the property portfolio.

genius, why didnt i think of that?

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I would expect they are able to offload properties they have already bought at a lower price if they are able to direct strangers' crowd funded money.

The structure is a recipe for fraud. Even if this specific one isn't, the flaws are so obvious that it will attract fraudsters like flies to dead meat.

I don't think they have any particular incentive to bid low when they buy do they? The level of the yield doesn't really matter to them as long as it's high enough to attract investors. What matters is that the rent is high enough that they get a decent sum for their 10.5% management fee.

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