Crowdfunding is a method of funding a project or organisation by pooling the money of individual investors. It can provide a number of benefits beyond the financial including marketing, audience engagement and feedback. Crowdfunding allows good companies which don't fit the pattern required by conventional financiers, to break through and attract cash. There are a number of types of crowdfunding but the 3 main categories are:

  • Reward or donation based crowdfunding – these are not investments
  • Loan crowdfunding (often referred to as peer-to-peer loans or debt crowdfunding)
  • Equity crowdfunding:

Equity crowdfunding is the process whereby individuals or the "crowd" invest in an unlisted company (a company that is not listed on a stock market) in exchange for shares in that company.

Equity crowdfunding is a great way to match companies who need funding with individuals who wish to invest. Investors become shareholders in the Special Purpose Vehicle (SPV) which owns the property. 

In property equity crowdfunding - this is what MercyCrowd is focusing on - each investor will have a shared ownership in the underlying SPV.

MercyCrowd has developed Mercy Crowd to Live® as a unique solution to fund your home and get exposure to properties yielding assets. A solution we are proud of as it stands in line with what we believe in at Mercycrowd.

Attributes

Alternative

Mercy Crowd to Live® offers an alternative to more traditional methods of property ownership.

Fair

Mercy Crowd to Live® proposes a unique and balanced way of dealing with financial distress. In case of default of a Mercy Champion over the rent, another tenant is chosen. The asset thus remains yielding which provides the required comfort to the Sponsor.

Structure

Partnership

Mercy Crowd to Live® is structured on a partnership set up between Sponsors and the related project Champion. Rent is paid to the Special Purpose Vehicle (SPV) that owns the property, and Sponsors have a share in this SPV. Champions can purchase partial ownership in the property from the other Sponsors. If a Champion completes the full ownership purchase, they then become full owner of the property.

Advantages

For Mercy Champions
Flexibility

In today’s world we don’t think that it makes sense to financially tie people up for 25 years. You have a high probability that your life today will be different in 5 years, 10 years…25 years from now. So why should your financing be the same? The Crowd to Live® scheme allows for the payment schedule to adapt to your life…it’s not your life that has to adapt to the payment schedule.

Low cost

MercyCrowd does not charge a booking fee, Arrangement fee, Mortgage fee, Bank legal fee and as there is no debt involved, you don’t have to pay for mortgage insurance. Also, if you decide to prepay you don’t have any repayment charges or redemption administration fee.

For Mercy Sponsors
Property Exposure

MercyCrowd is allows Sponsors to invest in properties with an initial investment as low as 50GBP whereby before you may have needed tens if not hundreds of thousands GBP to get exposure to this asset class.

Diversification

The small invest size will allow Sponsors to invest in several projects which will have the benefit of diversifying their investment not only in different cities but also countries. This allows you not to have all your eggs in the same basket.

Hassle free – Fully managed

MercyCrowd is offering its Sponsors a hassle free, packaged investment, as MercyCrowd with its partners will take care of the legal side, notary documentation, rent payment etc…

More Secure

The structure of this investment is allowing the Sponsor to avoid, vacancy time, unpaid rent as well as damages to the property. The main raison for that is the tenant is also owner of the property, so his interests are aligned with the other owners. You may visit the following for more insight on counterparty risk mitigation.

How to Mercy Sponsor

How to Mercy Champion

Counterparty risk mitigation

In case of default, the Champion shall be required to live the property and another tenant shall be found by the platform (which shall then act as property manager, in other words, from the Mercy Sponsor side, the deal will switch from a Crowd to Live® to a POP scheme) or the property is sold and all partners will receive their share of the selling price, the champion in this case will receive his share minus any rent and money own to the other partners

In order to secure the reimbursement of the defaulted amounts the equity’s Champion and its right over the rentals shall be pledged.

Mercycrowd has developed Mercy POP and POP+ as innovative solutions for you to invest in properties yielding assets. A solution we are proud of as it stands line with what we believe in at Mercycrowd.

Attributes

Alternative

Mercy POP offers an innovative alternative in the world of financial intermediation to access property assets and diversify without investing large amounts.

Real

Mercy POP gives you real and full exposure to the property asset market value you intend to invest in. Rents are linked to the real underlying value of the property. Yield is paid against a sale of usufruct and not as a result of interest.

Inclusive

Mercy POP is meant to be inclusive. Our POP scheme is straight forward and easy to understand. . Barriers of entries are lower both in terms of ticket and prerequisites.

Fair

Rents are linked to the real underlying value of the property. Yield is paid against rent and not as a result of interest.

Structure

Partnership and lease

Mercy POP solution is structured on a partnership set up between Sponsors. The partnership legally owns the property and rents it to the tenant. Rentals are paid to the partnership and redistributed to shareholders in the form of dividends.

Under Mercy POP+ the property is lease by the developer of the project through a long term commercial lease thus providing a guaranteed yield to the sponsor/investor.

Property Asset management

Assets under POP are fully managed and totally hassle free.

Advantages for Mercy Sponsors

Inclusive Property Exposure

MercyCrowd is allowing Sponsors to invest in properties with an initial investment as low as 50GBP whereby before you needed tens if not hundreds of thousands GBP to get exposure to this asset class.

Diversification

The small invest size will allow Sponsors to invest in several projects which will have the benefit of diversifying their investment not only in different cities but also countries. This allows you not to have all your eggs in the same basket.

Hassle free – Fully managed

MercyCrowd is offering its Sponsors a hassle free, packaged investment, as MercyCrowd and its partners will take care of the legal side, notary documentation, rent payment etc…

Low cost and higher returns

Mercy POP scheme has got one of the lowest fee structures in the market.

Guaranteed yield for POP+

In POP+, yield is guaranteed by the developer of the project through a long term commercial lease.

How to Mercy Sponsor - Path to contracting

Should redirect to the How to Mercy Sponsor page of the Mercy Sponsor Section.

At Mercycrowd we believe that social responsibility matters. As such, we have set up a specific solution to facilitate the donation process and unable the sponsoring of charities and non for profit initiatives.

We are also convinced that prosperity and welfare cannot be achieved but through strengthening our social networks. Thus, we decided to focus Mercy Donations on promoting local and sustainable projects.

If you are interested to become a Mercy Donator please visit our Mercy Donation Projects page. If you are looking for Donation please visit How to promote your project.

Joining Mercy Crowd is simple, fast and completely free.

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