According to this interesting report in Your Money today : " In the UK , Peer - to - Peer ( P2P ) lending is the most popular form of alternative finance for property , but this is much the same as a traditional mortgage . Instead of borrowing from a bank you borrow from a crowd of individuals paying monthly interest and the repaying the principle at the end of the term . At the end of the term , you have to pay monthly interest from the moment you take out the loan . The amount you can borrow is similar and you still need to find the repairs , refurbishments costs and the fees upfront . This is why Equity Crowdfunding is a good option . Rather than lending the money , the landlord is essentially in a joint venture with a crowd of individuals , sharing the risk and reward . tenants have an equity stake in the property equal to the percentage of the rent they provide and they make a return by simply sharing the income and capital growth generated from the property . "
According to this interesting report in Your Money today: "In the UK, Peer-to-Peer (P2P) lending is the most popular form of alternative finance for property, but this is much the same as a traditional mortgage. Instead of borrowing from a bank you borrow from a crowd of individuals paying monthly interest and the repaying the principle at the end of the term. At the end of the day, you have to pay monthly interest from the moment you take out the loan. The amount you can borrow is similar and you still need to find the deposit, refurbishments costs and the fees upfront. This is why Equity Crowdfunding is a good option. Rather than borrowing the money, the landlord is essentially in a joint venture with a crowd of investors, sharing the risk and reward. Investors have an equity stake in the property equal to the proportion of the funds they provide and they make a return by simply sharing the income and capital growth generated from the property."