CapitalRise is a peer-to-peer property investment platform that matches property developers with investors looking to finance projects. The platform allows investors to invest in property development projects. The minimum investment amount on the platform is £1,000. It is free to invest in the platform and investors can earn average returns of 7%. Your returns are also tax-free. CapitalRise is based in the United Kingdom.
CapitalRise Review: Quick Facts
- CapitalRise is a peer-to-peer lending platform where property developers seek funding for projects.
- You can invest a minimum of £1,000 and earn an annual average interest rate of 7%.
- There is a Bulletin Board where investors can sell their portfolios if they want to exit the platform. However, they will be charged a 1.5% fee. The Bulletin Board is not owned by CapitalRise.
CapitalRise was started in 2015. CapitalRise has invested over £162 million and repaid £93 million and no losses and defaults recorded as of 2022.
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How CapitalRise Works
CapitalRise is a peer-to-peer property investment that connects developers with investors who are willing to finance projects. Developers approach CapitalRise and then CapitalRise has to do due diligence to ensure they meet the requirements. If they meet the requirements, CapitalRise can consider underwriting a property loan.
If they consider the investment, they then post it in their deal room. Investors can then review all the details relating to the investment. They then decide if it is right for them to invest in it. An investor should also do due diligence before investing. If they are happy with the investment, they can transfer funds and start investing.
At the end of the investment period, the investor can get back their money along with their returns. You can opt to withdraw your returns or decide to reinvest.
How to Invest in CapitalRise
To start investing in CapitalRise, you need to follow these simple steps:
- Apply. You need to first apply to become an investor at CapitalRise. You need to ascertain whether you are a restricted investor, a sophisticated one, or a high net worth investor.
- Fund your account. You need to deposit funds into your CapitalRise account before you can start investing. You need to deposit at least £1,000 in your CapitalRise account.
- Select your investment. You need to find an investment you can allocate your funds to. Make sure to find the right investment for you.
- Start earning returns throughout your investment. You will be accruing returns throughout your investment period.
- Stay informed. Throughout the investment period, CapitalRise will be sending you regular updates about your investment.
- Get paid or you can reinvest. Once the term has ended, you will have your money back and the returns. You can choose to reinvest the money or to withdraw it.
CapitalRise Features
You can enjoy the following features while investing in CapitalRise:
Early Sell Out
CapitalRise has an early sell-out option. If you want to exit the platform, you can sell your investment through Bulletin Board. Note that the Bulletin Board is not owned by CapitalRise. You will be charged a 1.5% fee of the sale value. Buyers are not charged any fees. It is also worth noting that posting your investment on the Bulletin Board does not guarantee a sale.
CapitalRise Fees
CapitalRise does not charge investors for investing in the platform. However, you can expect the following fees if you carry out any of these activities:
- Sale of the portfolio through Bulletin Board: 1.5% of the sale
- CapitalRise Innovative Finance ISA: £35
Pros and Cons of CapitalRise
Pros
- Investors are not charged any fees while investing
- High returns of 7%
- Tax-free returns
Cons
- High minimum investment of £1,000
- The investment performance is not covered by the FSCS
CapitalRise Customer Support
You can reach CapitalRise customer support by phone: at +4420 3869 2620 or email: customercare@capitalrise.com.
Is Safe to Invest in CapitalRise?
Although CapitalRise does not have a buyback guarantee, it has put in place measures to ensure the safety of investors’ funds. CapitalRise is authorized and regulated by the Financial Conduct Authority. It is registered in England and Wales. Investors are urged to seek independent professional advice before investing in CapitalRise.
CapitalRise has 4.7 ratings on Trustpilot. Investors applauded the platform for its good returns, easy-to-use interface, excellent customer support and good track record.
CapitalRise Supported Countries
To invest in CapitalRise, you must be from the UK. You must also be either a sophisticated investor, high net-worth investor, or a corporate investor.
CapitalRise Alternatives
You can invest in the following investment platforms as an alternative to CapitalRise:
Summary of CapitalRise Review
CapitalRise is a peer-to-peer property crowdfunding platform based in the UK. You need a minimum of 1,000 EUR to invest in the platform. The average annual returns are 7%. It is free to invest in the platform and investors’ returns are not taxed. However, the downside of the platform is the high minimum investment amount of 1,000 EUR.
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