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Follow up interview with P2P Hero

22 Jul 2017

Our CEO, Filip Karadaghi, was recently interviewed by P2P Hero, a Swiss P2P blog.

The interview is a follow up to the interview which was made around 6 months ago.

The recent interview is available here and also reproduced below.


A follow up after 6 months in business from Landlordinvest CEO Filip

As a follow up of this early stage interview from January I present some new insights from Filip from Landlordinvest. Thank you Filip for taking the time to send me such detailled answers. Really appreciated.

How have the past 6 months been?

The last six months have been exciting and interesting but also lots of work. We have closed more than £1 million in loans, built up an investors base of almost 700 users, were the first platform in the UK to launch our residential property-backed IFISA product and recently raised funding from a Director of a private property investment company with assets of around £1 billion.

Now that we have had time to test and prove our tech and infrastructure, we will be expanding our capabilities substantially in the next two quarters, with more loan opportunities available along with further tech and platform improvements.

Can you give some stats? Defaults? Maybe to early to tell?

None of our loans have reached maturity yet so we have not recorded any defaults so far. However, we do have well established contingency plans to deal with any potential defaults, including partnering with leading recovery specialist including solicitors, administrators and receivers.

What do you expect for the rest of the year?

A large focus is to increase available loan opportunities as one of the most common criticism that we have faced from our investor base is the lack of loan opportunities. We fully understand and acknowledge this criticism as any investor must be able to diversify his/her portfolio across various loans.

From the investment to the release of the funds some weeks may pass. Anything coming to speed this up?

Given our business model with no pre-funding, we can only instruct legal completion once we are reasonably assured that a loan will be funded as it is a quite substantial cost for the borrowers (up to 1% of the loan amount). Additionally, it the speed of the legal completion process involves many parties (the lenders solicitor, the borrower solicitor, the borrower broker, insurance companies etc) therefore it is difficult to stream-line the process as we do not have much influence on everyone involved in a transaction. It only requires that there is a slight delay somewhere in the chain for the whole process to be significantly delayed.

At the moment you offer a project yielding 17.3% (sec charge, bridging loan). Will you in future aim for more risky loans or is this an exception?

Our focus is to offer loans with an appropriate risk/reward ratio. Loans that are deemed high risk (due to high LTV and/or that the borrower(s) do not have a good credit history) will yield up to 20% per annum, whilst lower risk loans will yield less. Our loan pricing is in par with the wider lending market.

Filip, once again, thank you for taking the time to answer these questions, always a pleasure talking to you.

Our blogs are for information purposes only. This content is not financial, legal or tax advice.  Should you require any advice in relation to the earnings you make from LandlordInvest we recommend seeking independent professional advice. Links to other sites are provided for your convenience but LandlordInvest accepts no responsibility or liability for the content of those sites or of any external site. The information in this blog is correct at the time of posting.

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Don't invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

LandlordInvest Limited is authorised and regulated by the Financial Conduct Authority (FCA) (FRN 660926). LandlordInvest Limited is not covered by the Financial Services Compensation Scheme (FSCS).

Loans provided to borrowers through LandlordInvest are provided solely for business purposes. Loans are therefore not regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974. You should seek independent legal advice if you are in any doubt as to the consequences of the loan not being a regulated agreement under those Acts.

LandlordInvest Limited (Company No. 09245725), registered office 330 High Holborn, London, WC2A 1HL

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