Invest & Fund - Blog

Is there a right time to become a peer-to-peer property lender?

Brexit. Elections. Talk of a slowing property market. The pessimists amongst us might be forgiven for thinking there’s never a right time to become a peer-to-peer lender, or to start lending to residential property developers.

Regardless of the headlines and political environment, residential housing is still a problem to be solved. And where there’s a problem, optimists see a solution.

People still need places to live, and we’re not building enough.

Cash rates continue to chug along at historical lows.

Banks are still reducing the amount lent to smaller residential property developers.

For me as the head of a peer-to-peer lending business, this all adds up to one thing – opportunity.

The opportunity to apply a flexible approach and exceptionally strong credit structuring skills to find projects with the potential to deliver risk-adjusted returns for our lenders.

It’s not easy, but that’s the approach we’ve taken at Invest & Fund. We work with residential property developers, brokers and experts in credit risk to thoroughly assess every residential development loan we consider. Then we open the doors to our p2p lenders, giving them clear line of sight on every opportunity, and the choice to lend on individual residential property and bridging loans.

So far it’s an approach that’s working. Through election years, referendum votes and the ups and downs of the property cycle we’ve welcomed more than 500+ registered peer-to-peer lenders and lent almost £20 million.

It’s no surprise, but when it comes to peer-to-peer lending, we think it’s always a good time to start. The key is to know what you’re getting, do your homework, find peer-to-peer lending platforms that provide the flexibility to choose loans that match your risk profile. If you start there, you should be at least one step ahead of the pessimists amongst us.

David Turner

David Turner is the CEO of investandfund.com, a UK-based P2P platform helping individuals and institutions achieve attractive risk-adjusted returns from residential development projects. Contact David directly on david@investandfund.com




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RISK NOTICE

Invest & Fund operates a lending platform to finance property development projects. Lenders' capital is at risk. Past performance is not an indication of future returns.

Lenders’ capital is at risk. Remember, payments are not guaranteed if the borrower defaults. This communication is targeted at UK residents only and it does not constitute advice, within the meaning of the Financial Services and Markets Act 2000. Invest and Fund Ltd (“Invest & Fund”) operates a lending platform, bringing together borrowers and lenders, to finance property development projects. Invest & Fund makes no representation and accepts no responsibility or liability for the completeness or accuracy of this communication. If you have any questions about the suitability of a particular product to you, please contact an Independent Financial Advisor. Before making an investment decision, you should ensure that you have sufficient information to ascertain the legal, financial, tax and regulatory consequences of an investment, to enable you to make an informed investment decision. Where links are made to third party sites, we cannot accept any liability for the accuracy or completeness of the information provided. Invest & Fund is not responsible for information stated to be obtained or derived from third party sources or statistical services. Invest & Fund may monitor and store communications by e-mail, to the extent permitted by law. Invest and Fund Ltd is regulated under an Interim Permission by the Financial Conduct Authority (FCA) (interim permissions reference no. 660564). For further information, please visit www.fca.org.uk. Invest & Fund is not covered by the Financial Services Compensation Scheme. Invest and Fund Ltd (No. 8277803) is registered in England and Wales. The registered address is the HCP Building, Chichester Road, Ponswood, St Leonards-On-Sea, East Sussex, TN38 9BG.