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Yielders is there for you to answer your questions. What is on your mind?

Yielders is a community. We believe in sharing. We believe in helping each other out. We want all of our investors to feel comfortable with the investment opportunities offered on our platform. We have therefore listed some of the most frequently asked questions and answers below so that you can feel more confident in making an investment decision. If you still have a question then feel free to contact us and we would be happy to assist.

1. What is Property crowdfunding?

Property crowdfunding is a process where multiple investors come together to purchase a property.

2. What does Yielders do?

Yielders operates a fully regulated online platform that allows people to come together and invest in a selection of assets that might otherwise not be available if investing individually. Yielders investment committee hand pick assets that meet a strict criteria in terms of returns for investors while minimising investment risk. Yielders also manage the investment and administration of the investment vehicle to make the investment as hassle free as possible.

3. Why invest with Yielders?

Yielders offer opportunities that would be difficult to access individually. By utilising the power of the crowd and advanced technology, Yielders is able to offer investment opportunities that would have historically only been available to select investors. Our assets are selected to offer market beating rental yields providing a steady income to our investors. Returns are further advanced with capital appreciation (an increase in the value of the underlying asset). The properties listed on the platform have already been acquired which means that you can benefit from the income the property is yielding almost immediately. Furthermore, none of our assets are leveraged which means the risk associated with mortgaged properties in completely extinguished.

4. What if something goes wrong with Yielders?

Yielders have taken every step to ensure our process is well thought out and our investors’ money is in safe hands at all time. Our team of experts conduct extensive due diligence on each asset we make available to the crowd. Each asset is vetted against our high standards and we have taken the necessary precautions with regard to insurances on all of our assets. An investor's money is held in a ‘specialist purpose vehicle’ which means that each investment is totally secured, and if the unforeseen does happen, your investment in the SPV remains intact.

A director will be appointed in line with terms set out in the shareholders agreement. The director will administer the requirements set out in the shareholders agreement and oversee the repatriation of funds to investors.

5. How does Yielders find the properties it lists?

The Yielders investment committee have combined property investment experience of over 30 years. Their experience ranges from residential and commercial lettings management, acquisition and disposals and property development. They find properties through their network of contacts and through analysing both on and off-market opportunities.

6. What’s the process of me being a Yielder?

We have tried to make becoming a Yielder as easy as possible. You can join the platform by clicking ‘sign up’ on the top right of the website homepage. Once all the details are filled out correctly, we will provide you with an ID to sign into the platform. You can then start your investment journey.

This information requested when signing up is necessary in order to comply with the Financial Conduct Authority. We need to assess your suitability for investing in property via our platform. This process can be entirely completed online. It is important to note that all of your data is stored securely and is never shared.

7. What if I’m not a UK citizen? Can I still be a Yielder?

Our aim is to make our investments available to all, however, regulatory restrictions mean that citizens and residents of certain jurisdictions are unable to invest on our platform at present. We encourage all interested investors to register as this would allow us to assess the viability of increasing our geographic reach in the future.

8. Can I invest in more than one property and have a portfolio?

Absolutely! You can invest in as many properties as you like provided you have the minimum investment required to access the opportunity.

*Before investing in multiple properties you should obtain independent financial advice to ensure your property portfolio is part of an overall asset allocation suitable to your personal circumstances.

You will also be able to track your investment in each of your assets on our easy-to-use online portfolio tool. This means you have complete overview of your investments from anywhere in the world (provided you have an internet connection).

9. How long is a typical Yielders investment?

Each property investment will have a typical investment lifespan of 3-5 years. The Yielders team run various financial models to determine the optimum length for an investment in order to maximise returns for our investors. Investment length and estimated returns are listed on each investment opportunity. As property is an illiquid asset and as property acquisition normally has high acquisition costs it is generally considered a longer term investment. Early exit is possible but this could adversely affect the total return on investment.

10. What happens if a property doesn’t get funded, or the property cannot be bought for the said price?

You can invest in every property that hasn’t already sold out on our platform. As our properties are pre-funded we eliminate the chances of an investment not materialising. By registering on the platform you will be notified of opportunities as they arise. There is a risk that a property could sell out too quickly – but for us that is a testament to the opportunities we offer.

11. Are your investments Sharia compliant?

Yielders SPV’s is an investment platform structured in accordance with Sharia principles. Our platform does not use any banks to fund a property under any debt based loan which charge interest. We, at Yielders, acquire properties debt free at the prefund stage, so an investor's money goes straight into the property.

12. Are Yielders regulated?

Yes. Yielders Limited is directly authorised and regulated by the Financial Conduct Authority (745636)

13. What is an ‘SPV’?

Yielders property investments are owned by a ‘specific purpose vehicle’, or SPV. This is the name given to a Limited Company set up for a specific purpose. In our case this will be property investment.

14. At the end of the investment, how does the property get sold?

Prior to the end of the investment term, the property is re-valued and listed on the open market for sale. Once a sale is agreed, Yielders will manage the completion of the sale with solicitors. The funds generated from the sale will be redistributed in accordance with your investment terms.

15. What sort of return can I expect?

The return the investor gets is on each SPV advert under the heading ‘Pricing Method’. Each investment opportunity has its own unique amount of return. You can select performance based on your investment objectives. Investing in property generally offers rental returns which provide a regular income as well as capital appreciation which is determined by market forces. We use historic data and forecasts from reputable surveyors and analysts to provide estimated capital appreciation.

16. When does the investor get their share certificate?

Once you have invested into a property, a share certificate will be issued to you. This should take around 7-10 working days.

17. Can I invest through a Limited Company?

Yes you can! When you register on our website and go through the sign up process, please select the tick box stating 'Limited Company' and follow the onboarding verification process.

18. How does Yielders make money out of this?

Yielders charge each SPV a fee for administration (2.5%), management (10%), and profit share (15%). The administration fee is payable when investing. This is to cover the overheads associated with setting you up as a client. The management fee is a monthly charge on gross rent and is designed to cover the management of the SPV and its assets. The profit share is payable on exit. This has been designed to reward Yielders should the investment offered by us prove to be successful for you.

19. How often does the investor receive his/her shares of the returns generated from the investment property? Is there an exit strategy?

Returns are made quarterly or monthly depending on the chosen investment. All payments are made directly to the electronic wallet account that is set up by you when you make your first investment. You can then transfer this money to your bank account or let it accumulate to make further investments.

Most of our investments have a defined exit and this allows you to maximise your returns. However, as a shareholder you are also free to leave the investment whenever you want by re-listing your property on our platform.

Please note: there may not be sufficient demand to sell your investment on the platform.

20. What if my circumstances change and I need to sell my shares early?

Each investment has a designated time frame in order to increase your potential returns. However, we realise that there will be times when this period does not necessarily meet the investor’s needs such as when circumstances change. In this case, we offer a secondary market where we can help find a buyer on our platform. We also allow the seller to find their own buyer for the shares as well. The transfer of shares incurs a processing fee of £50.

Please note:there may not be sufficient demand to sell your investment on the platform.

21. What is the difference between a regular Yielder and a Top Yielder?

Our regular Yielders can invest from £100. Our Top Yielders have access to off-market development projects and prefunding of assets on the platform. These investments start from £50k.

22. What are the tax implications on rental dividend earnt?

The rental distributions are made on the 1st of each month; a month in arrears from the date of the investment. These payments are paid out as dividends, thus will be considered as part of your personal dividend allowance. For example: for the tax year 2019/20, you will have a tax allowance of £2,000 in dividend payments.

23. Is there any interest involved in the rental income?

No there is no interest involved; we are a sharia based platform and do not deal in interest, all incomes paid out are a distribution of the rental income.

24. Is the capital growth made at the maturity of the investment considered as a normal capital gain?

Yes the capital growth once distributed to investors is considered a capital gain.

25. I do not live in the UK, can I still invest?

Yes, anyone can become a Yielder wherever they are in the world (with the exception of US due to tax implications) provided all required documentation is submitted online and validated.

26. How does Group Investing work?

  • Users sign up individually with their own unique account
  • Notify Yielders of the Group accounts that you would like linked
  • Each user needs to commit the investment decision themselves
  • We can provide a single asset that only the group can invest in, e.g. find an asset type and price range the group would like to purchase and provide Yielders with a budget, the investment committee will then provide a suitable asset to meet the requirement
  • No other Yielders will be able to invest in the group investment deal
  • Rental will be paid in to each users accounts and they can withdraw funds at their own discretion

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