LandlordInvest, a peer-to-peer lending platform for residential and commercial mortgages, is now seeking a minimum of £300,000 through its equity crowdfunding campaign on Crowdcube.
Founded in 2014, LandlordInvest is a fully FCA authorized secured peer-to-peer lending platform and is an ISA manager. The online lender provides a marketplace where lenders can earn higher returns, than lending through other peer-to-peer lending platforms, by lending to borrowers that have difficulties obtaining financing from high street lenders.
“LandlordInvest is bridging the gap between lending markets and professional landlords. We let lenders invest in secured buy-to-let and bridging loans from £100 in loans that they choose, and we let professional landlords with a track record, raise capital from their friends, family and the crowd, all through a simple online process.”
A few of LandlordInvest’s milestones include the following:
- £5.3 million lent to professional landlords; investors have been paid £323,018 in interest and to date no capital losses
- Average loan-to-value ratio (LTV) of 63.76%, average loan amount of £204,221 and investors earned on average 11.37% per annum
- Offered the first residential property-backed Innovative Finance ISA (IFISA) in the UK, giving investors the possibility to earn tax-free returns
- Launched a secondary market; to date, £1,542,186 has already been traded
The company also reported it is backed by RLC ventures, an award-winning venture capital firm, and respectable business angels including Alan Gabbay, who is shareholder and Director of O&H Properties.
“The company is cash flow positive (+£4k net profit) and we are looking to raise funds to scale our operations to the next level, mainly focused on loan origination and management. This will include hiring Business Development Managers, Relationship Managers and additional technical resource.”
Funds from the Crowdcube round will be used to continue the growth and expansion of the LandlordInvest platform. It is set to close at the end of November.
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