P2P property lending has been providing steady returns in the UK, according to a report from rating agency, 4thWay; since 2013, UK P2P property lenders have lent £1.6 billion with returns ranging from 2.25% to 12.7%; lenders in the category have achieved success through thorough underwriting processes with maximum loan to value ratios of 70% to 80% and most loans secured by the property. Source
AdaPia D'Errico, a prominent executive and marketer in real estate crowdfunding, is departing Patch of Land; CEO Paul Deitch, who was recently brought into the company to help it mature and reorganize, bid D'Errico a fond farewell; she will continue to serve in an advisory role through 2017, while considering future options including other aspects of real estate; she is replaced by Robert Greenberg, who joined the company in August as a marketing consultant. Source
Real estate crowdfunder, Fundrise, has made its investment division into an independent company, RSE Capital Partners; the goal was to separate and focus on the two functions of capital raising - via Fundrise with its eReit platform - and capital providing to real estate projects; RSE will focus on financing real estate deals from $20 million to $100 million, while they examine ways to make terms more flexible. Source
Roofstock, an online marketplace in the single-family rental sector, raised $20 million in Series B funding from Lightspeed Venture Partners, Khosla Ventures, Bain Capital Ventures, Nyca Partners, QED Investors and SV Angel; they plan to use the proceeds to ramp up national expansion, invest in product development and roll out an asset management platform as they intend to reach domestic and global investors. Source
Marketplace lender, LendingHome, has reached a new milestone; firm has funded over $750 million in mortgage loans since its launch in April 2014; claims to be the largest mortgage marketplace lender; firm attributes the rapid growth to a broader range of investors, now including retail investors, and the secured status of the real estate loans; Matt Humphrey, LendingHome CEO, shares additional thoughts in the included Q&A. Source
Marketplace lender, PeerStreet, has raised $15 million in a funding round led by venture capital firm Andreessen Horowitz; PeerStreet offers secured real estate loans through its lending platform; the minimum investment is $1,000; investors on the platform include high net worth individuals, family offices and institutions; Andreessen Horowitz's Rampell noted the competitive advantages of PeerStreet compared to competitors included their fast growth and distribution model; he stated, "Most companies that are lending to consumers spend all the money in customer acquisition and it is very hard to get a profit." Source
One of the most innovative banks in Europe is now partnering with Airbnb to allow residential mortgage customers to rent their properties; Metro Bank will allow customers to rent their homes for up to 90 days without any written approval; Paul Riseborough, chief commercial officer at Metro Bank explained, "Our focus is on making our customers' lives as straightforward and convenient as possible and we therefore hope today's news will give our customers the reassurance they need to jump in and take advantage of everything the dynamic sharing economy has to offer." Source
LendingHome has reported over $1 billion in mortgage loan originations since it launched two and a half years ago; company is the leading marketplace lending mortgage loan originator in real estate; factors influencing the rapid growth include expansion to jumbo loans and a new investor platform for individuals; active in securitization, it has partnered with Nomura Securities International and developed the industry's first master trust securitization vehicle providing it with ongoing access to the securitization market. Source
Patch of Land has filed a Form D 506c with the Securities and Exchange Commission; it seeks to raise $3.2 million in debt capital with a minimum investment of $250,000; the company has already raised $1.5 million; the company raised a total of $23.6 million in 2015 and has facilitated over $100 million in loans. Source
California mortgage lender Opes Advisors is using proprietary software technology to help clients think more holistically about how buying a home fits into their financial plans; the company originates approximately $3 billion in mortgage loans per year and has built technology software that advises clients on comprehensive financial planning; also offering wealth management, the company provides comprehensive advisory services that are unique in the mortgage lending market. Source