Described as the UK’s first “near prime property peer to peer lending” LandlordInvest is hoping to raise £60,000 for 11.5% ownership in the young firm. Pre-money valuation of £461,739 was assigned to the investment offer. The new funding round was just recently launched and has captured about 17% of its funding goal from 14 investors.
LandlordInvest wants to become the bridge between near prime property borrowers and lending market. They intend on targeting professional buy-to-let and bridge loan borrowers with a “near perfect” credit score but who are struggling to get loans from traditional banks.
“We will be the first P2P lender that is looking to bridge the gap between near prime property borrowers and a lending market which last year stood at around £30 billion,” said Filip Karadaghi, LandlordInvest’s Chief Executive. “We do not believe that it is fair or rational that borrowers, with nearly perfect finances, are unable to borrow because of missing a single payment years ago, caused by an unexpected life event such as a divorce or illness. Our retail and institutional lenders will be able to obtain higher returns than offered through other P2P lending platforms, as they will be providing financing to an unserved borrower market”.
LandlordInvest wants to break into the hot peer to peer lending space – a sector in finance that has been booming in recent years. The company founders state they will provide higher returns to lenders than other secured P2P platforms by targeting higher quality credit – all secured by property.
The company views their primary customers as:
- Borrowers – professional buy-to-let landlords with a near prime credit history that are looking to borrow £30,000-£300,000 up to 5 years on a buy-to-let basis. They would also be able to raise short-term financing, bridging loans with a maximum term of 18 months.
- Lenders – Anyone that has at least £100 to lend will be able lend. We aim to offer lenders risk adjusted returns between 5%-10% per annum.
The founders, Filip and Nik Smirnovs (CFO), explain they have spent years working with investors looking for decent and stable returns without the volatility of the stock market. Combining this experience with that of being landlords, thus understanding the difficulties of dealing with traditional lenders, they believe they have created what can become a very successful direct lending platform.
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