The mantra of using OPM (Other People's Money) is often repeated in property investing literature. Use enough OPM mixed with a rising market and you will become wealthy. Use enough OPM in a falling market and you can be wiped out.

Anyone reading this magazine will already be familiar with borrowing money from a bank (institutional OPM) so no need to address that angle. Given how the lending landscape has changed, more and more investors are looking at private sources of capital to fund deals. Labeled Joint Ventures (JVs), private lending and co-investing, you are likely aware of the various funding opportunities. The problem is that there are some harsh boundaries between what a property investor can do and the minefield of regulated investment activities.

Warning
Before commenting further, let me be very clear. I am not trying to offer any specific or even general advice other than you should hire a professional who is qualified to delivery advice specific to your needs. This is an educational article to raise awareness rather than a suggestion for what you should be doing in any particular situation. I am unqualified to offer advice on FCA (Financial Conduct Authority; replaced the FSA 04.13) regulated activities. I do not know your situation so there is no realistic possibility that what is written here could be useful as specific advice for your situation. Are we clear? If not, then stop reading.