We have been asked to clarify a few points on the Castle and Gatehouse model.
Despite what anybody says/writes, it is a fact that not one single person who invested into Castle and Gatehouse has lost money. The model was structured in such a way that the investor could not lose money.
The investor owned 100% of the asset,from day one, in their own name.
The money only left their account on the day the property was purchased.
All fees were agreed with the investor upfront – to ensure there were no surprises.
They were sent a weekly photographic record of progress.
For their part Castle and Gatehouse sourced the property, renovated it, let it, and arranged the sale and the fee for this was 50% of the sales profit.
If the property did not sell quickly, which has happened in some instances, then the investor received the rental income for the property as well as having an asset that has increased in value (thus increasing their net worth), this is always backed up by an independent RICS report.
If after 12 months the property had still not sold then Castle and Gatehouse were contractually bound to concede their share of all sales profit.
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