LandlordInvest’s chief executive has predicted a small profit this year after conducting second charge lending to developers that have received loans under the coronavirus business interruption loan scheme (CBILS).
Filip Karadaghi (pictured) told Peer2Peer Finance News that his peer-to-peer property lending platform reached the breakeven point for 2020 yesterday.
“We’re breaking even without introducing any additional changes or fees,” Karadaghi said.
“We’re run very efficiently. We operate extremely well, and we’ve been doing lots of second charge lending which has much higher rates.
“CBILS accredited lenders provide the facility to refinance development loans and don’t offer an additional release, so we’re bridging the gap between CBILS and the additional release of equity.
“We’re making more money. The risks with second charge lending are significantly higher, so it’s not for everyone, and we charge a premium for that. We minimise the risks and ensure we get paid.
“And we now expect to make a small profit for the year.”
In July, Karadaghi said that LandlordInvest had seen a surge in enquiries since lockdown restrictions were eased so he expected revenues in the third quarter to compensate for the poorer performance in the first six months of the year.