FAQ - Homegrown

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Homegrown is an independent property crowdfunding platform that provides investors with the opportunity to invest in high quality, pre-vetted residential and mixed-use development projects alongside professional and institutional investors.

It is free to join Homegrown and once registered you can choose from a range of investment opportunities, which have been carefully selected and rigorously reviewed and invest as much or as little as you like (min £500), which allows you to easily build a diversified property portfolio, hassle-free.

Once invested you will own a share of a UK limited company and will be entitled to a share of any profits realised by the development on exit. Projects typically target an investment term between 18-36 months and you will receive regular performance updates over the life of the project through a personalised investment dashboard.

Homegrown works with established property developers to provide them with the equity finance that allows them to build more homes, support local communities and transform areas.

If you have any further questions on Homegrown or how to crowdfund a property, please feel free to email us at info@homegrown.co.uk.

Crowdfunding is the term used to describe the process of raising funds from a number of people (the “crowd”) who each invest a share of the total amount of funding required.

The UK crowdfunding industry has grown rapidly in recent years as more and more people search for an alternative to the services offered by traditional financial institutions in the UK. A report prepared by Nesta in 2016 estimates that the UK Alternative Finance market grew by 84% to £3.2bn in 2015 and the real estate crowdfunding market, which was one of the fastest growing sectors, had grown to £700m.

Homegrown is an equity crowdfunding platform, which means you receive an equity share in return for your investment and may receive a return on investment in the form of dividends linked to the performance of an individual underlying real estate asset (eg a property development). If you have any further questions about Homegrown or are interested in learning how to crowdfund a property development, please feel free to email us at info@homegrown.co.uk.

Source: Nesta (Feb 2016) – Pushing Boundaries. The UK Alternative Finance Industry Report 2015.

There are a number of reasons why you should be confident when investing with Homegrown.

Regulation – The UK crowdfunding industry is regulated by the Financial Conduct Authority (“FCA”) and Homegrown is one of only a handful of companies that is directly authorised and regulated by the Financial Conduct Authority (FRN: 694952) to operate an equity crowdfunding platform.

Separation - You are not investing directly in Homegrown. Instead you invest in each project by acquiring a share in a newly formed SPV (ring-fenced from Homegrown) which is set up solely to hold and manage each investment.

Transparency - One of the biggest attractions of crowdfunding, compared to investment with traditional financial institutions and a fundamental principle of Homegrown, is to provide you with complete transparency over the investment process and the risks and opportunities associated with each investment. You choose which projects you would like to invest in and we provide you with all the relevant information about each investment (including details of our fees, financial projections, assumptions and the due diligence performed) to allow you to make an informed decision.

Control – As an investor and company shareholder you have the right to vote on the key decisions that impact the company you have invested in, which ensures decisions are always made for the benefit of the majority of investors.

Our team - We believe our management team have the right experience and credentials to manage Homegrown in an efficient, effective and responsible manner, having previously enjoyed successful careers with some of the world’s leading firms in the financial and professional services industries.

Fees - Our fee structure includes a profit share arrangement which ensures that our interests and motivations are completely aligned with yours.

Our investment strategy primarily focuses on high quality residential and mixed-use property development projects with established developers in the UK. Our investments typically target an investment term of between 18-36 months and provide developers with equity in return for a share of development profits.

The scale of development projects meant these investments have historically been reserved for a minority of institutional and professional investors, but crowdfunding has changed the investment landscape so everyday investors can now invest in these projects alongside institutional and professional investors.

We work to a strict investment criteria to ensure that we minimise risk and maximise potential returns for our investors. Our team undertakes an independent review of every project, which includes reviewing a development appraisal, financial assumptions, market reports, sensitivity analysis and a developer's track record. We only accept projects that meet our investment criteria which means we reject c90% of projects we review.

Your capital is at risk if you invest in property. This includes illiquidity (the inability to sell assets quickly or without substantial loss in value), and the loss of invested capital if the wider property market or an individual property suffers a reduction in value. Investments on Homegrown are not covered by the Financial Services Compensation Scheme. Past performance and forecasts are not indicative of future performance. For more information see our full risk warning. Homegrown Group Limited is authorised and regulated by the Financial Conduct Authority (FRN: 694952). Investments through Homegrown are equity investments.
Future performance is not guaranteed and is based on projections only. Your capital is at risk if you invest in property. For more information see our full risk warning.