Nester aims to provide a safe environment for its investors!

Any investment can prove daunting. When something seems too good to be true, it often is. The investment world can sometimes attract Ponzi, Pyramid and Boiler room scams. So, how can you cut through the weeds to find out what is real and what’s not? Nester has the answer! With our online platform and rigorous background checks, we know we are providing you with the best investment opportunities.

What is an investment secured against property?

Bricks and mortar are tangible assets that are unlikely to disappear overnight. However, some types of property investments are safer than others.

At Nester, we specialise in Debt financing, Investment which aims to provide a consistent return for our investors whilst securing their investment against property. Alongside establishing a secure online platform, we have put in place meticulous checks to help form a clear profile of any potential investment opportunity. This way, any Nester investor knows they can trust when investing with us.

How do we do our Due Diligence?

Due diligence is one of the most important steps to property investment which we take very seriously at Nester. Here we will detail some of the procedures required to become a borrower on our platform.

First and foremost, we are an FCA-regulated company which means that we must follow and adhere to the Financial Conduct Authority’s standards for dealing with consumers (investors & borrowers). Nester takes its regulatory obligations very seriously, meaning you can confidently rely on us to receive the best support and service when using our platform.

Regarding our borrowers, the first key piece of information is that we only deal with registered companies and do not consider individuals for finance. These companies are often SPVs (Special purpose vehicles), smaller subsidiary companies created to reduce financial risk to the parent company.

A full KYC check is completed against all companies and the prominent people involved, owners, directors etc. A KYC (Know Your Customer) check is carried out to validate the profile of a company. This entails confirming the identity of any of the company’s critical members while assuring that the company is a legal entity.

After confirming that the borrower is who they say they are, we conduct a credit assessment on the company and a credit check on the directors and shareholders. This is crucial to securing a financing opportunity with Nester through its investor platform as we look to develop a clear image of a company's history. We can see how they have performed with similar investment and financing opportunities.

For example, if it is the first time a company has stepped into property development, the risks are higher than those of an experienced developer. All this information helps us build a comprehensive picture to carefully assess the risks before moving forward.

How do our risk assessment and algorithm work?

We use qualitative (categorical) and quantitative (numerical) data when creating a profile, which we then enter into our credit risk scoring algorithm. An example of quantitative data would be the current valuation of an investing company, whereas an example of qualitative would be the types of projects they’d invested in before.

The algorithm can calculate any changeable factors and build a file based on evidence and data that sets the next steps in motion. We then conduct a property valuation, verify that the borrower legally owns the building and address any issues with the property title.

By this point, we will have produced a file (credit paper) of the property and the borrowers, which we will forward to our specialist panel. Those specialists have a wealth of experience in various sectors and are well placed to judge potential investment opportunities' risk factors and profitability. It requires their approval for any property to move into funding.

However, there is one more step. After that, we pass our report on to our external solicitors, who conduct their due diligence to ensure that our findings are sound. Once this is complete, projects are granted funding and are eventually available on our online platform.

What do our risk ratings mean?

They are pretty simple. The investment opportunities with the lowest risks following these checks are rated A1, A2 or A3, with A1 being the best. These are outstanding investment opportunities that meet the majority of due diligence checks. The following levels are B1, B2 and B3, known to us as very good investment opportunities. C1, C2 and C3 are the highest-risk investments known as good investments that reach the minimum financial criteria.

How can you get involved?

As you can see, your investment journey is paramount at Nester. We have created an online platform with some of the best credit risk assessments as we aim to provide excellent investment opportunities. Head to our website, where you can discover all the fantastic investment opportunities we offer and start working on your Nest egg today.

Your capital and profit are at risk. Investments are secured on property, but this does not mean they are guaranteed, and you might lose some or all of your investment. Your investment is not covered by the Financial Services Compensation Scheme. Profit returns shown and past performance are not a guide to future performance. Tax treatment depends on individual circumstances and may change. We recommend you seek financial advice before investing.