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www.christianpenner.com - Mortgage Lender Jupiter FL | Call (561) 600-5665 Christian Penner and his team provides Jupiter FL clients with ...

LendInvest raises $39.5M to grow its P2P property finance platform

LendInvest currently helps property buyers pick up bridging finance, development finance and also finance for buy-to-let properties, and it says it has lent nearly $2 billion (£1.5 billion) across 5,000 properties in the UK since it was founded in 2012.

It’s competing against the established route that property buyers take in the UK today when searching for finance. Today, this is primarily banked around established banks and mortgage lenders, along with brokers and others in the value chain that help match people with interest rates and institutions willing to give them money.

As with a number of other peer-to-peer lending platforms, LendInvest has worked out algorithms that can bypass some of the more laborious and expensive processes of established routes, with the promise of faster financing and an alternative way for investors to try to make more from the money that they have.

P2P has proven to be a compelling alternative route to borrowing money, whether it is for purchasing property or something else, sometimes to great success for the startup at the center of the transaction. Another UK startup, FundingCircle , which provides P2P lending for small businesses, is gearing up for an IPO  in London where it could raise £300 million and be valued at £1.5 billion.

10 Income-Increasing REITs to Buy

) Is another interesting REIT that doesn’t actually own properties, instead servicing the mortgages behind residential properties.

There are parts of a mortgage contract called Mortgage Servicing Rights (MSRs). An MSR provides a mortgage servicer with the right to service a pool of mortgage loans in exchange for a fee.

About 75% of MSRs are held by banks. But most banks aren’t interested in this aspect of servicing mortgages because of new banking regulations. The more MSRs they hold, the higher their reserve requirements and the less money they can put back into investments.

NRZ is going after MSRs. They’re a steady stream of income as long as the housing markets are stable to growing. And higher interest rates and home values will even help boost MSRs’ value.

NRZ has a $6 billion market cap, so it’s not hanging on by its teeth. And it’s delivering a whopping 11% dividend. The may only be up 8.5% in the past year, but that dividend certainly makes for an impressive total return.