Lending2b in 2017

Lending2b’s focus on growth solidified our position as one of the key player in the online mortgage marketplace in 2017. Loan volume was close to surpassed our goal of funding over $40 million in loans in 2017.
Funds utilization was good with only 3 days turnaround between payoff and new loan, providing a great 9.94% return for investors on the platform.
Feedback from our investors resulted in a more frequent posting of new loans on the Lending2b Marketplace, now nearly every day.

Thank you for investing with Lending2b in 2017 and we look forward to improving the investor experience even more in 2018.

 

2017 Accomplishments

• 122,000,000$ funded since the beginning

We reached 120 Million USD of loans last year and 80M$ were payed off since we started 9 years ago.

• Over 1300 Loans funded

We crossed the 1300 loans mark, one loan being funded and one being repaid every day in average

• Close to 88 Individual Accredited Investors

The Lending2b Marketplace experienced an 20% increase in investor accounts, bringing the total to nearly to 100 individual investors. Investors account range from 10k to 4M, but everyone benefits from the same conditions !

• 9.94% performance for our AutoInvest shareholders

This is as close as the 10% mark we can be with only a few days turnaround between 2 loans, demonstrating how our operations are well managed. Have a look at the full financial dashboard here

AutoInvest details

 

 

Fix & Flip Market Update

2017 marked another strong year for the estimated $30 trillion United States housing market with continued home price appreciation (+5.6% YTD), increasing pent-up demand for homes, and millennials starting to form households. Like the broader housing market, the United States fix and flip market continued to generate reliable and profitable investment opportunities for real estate investors.

According to Attom Data, approximately 6% of all homes sold in the first half of 2017 were flips compared to 2016’s 5.7% of flipped homes. There were 97,214 “home flips” completed in the first half of 2017, compared with 95,174 in the first half of 2016. In addition to high fix and flip volume, exits were profitable for property investors.
Attom Data reported that average gross profit for homes flipped in the first half of 2017 was $66,067, up from $62,624 in 2016. Even with the increase in gross profit, this is also connected to home price appreciation. The average return on investment (ROI) after a completed flip in the first half of 2017 was 48.0%, down from 49.2% during full year 2016, but still a reasonable return for property investors

Sources: S&P CoreLogic Case-Shiller Home Price Indices / RealtyTrac Home Flipping Reports

 

Lenders in 2017

More than 35% of homes flipped in the first half of 2017 were purchased by property investors with financing from lenders, according to Attom Data. The percentage of financed flips has been steadily rising since 2011 and the first half of 2017’s figure represents an eight year
high. Despite this rise, the percentage of flips financed trails historic highs. For example, the percentage of flips financed was above 60% in 2006-2007.

 

Lending2b’s Position

According to RealtyTrac, 11,172 lenders financed at least one fix and flip deal in the first eight months of 2017. Across these lenders, there were many private individuals, small hard money investment funds, regional non-bank lenders, and the occasional community bank. However, among the 11,000+ lenders, few specialized in offering loans in many states. With so many smaller lenders, fix and flip lending is still a fragmented market. There were five lenders who financed over 1,000 flipped properties through August 2017. In that timeframe, these lenders financed 13% of flipped homes. In contrast, 11,045 small lenders financed 50 or less flipped homes in that same time period.

 

 

2017 Weather Events

Hurricane Irma

Hurricane Irma landed at the Florida Keys on September 10, 2017 as a Category 4. The highest winds recorded were 185 mph and resulted in an estimated $66.7 billion in damages, but damages could be even higher due to collateral effects on the local economy. As a result, recovery of affected areas could be delayed due to an already constrained manual labor force and a limited supply of contractors.

Hurricane Maria

Hurricane Maria followed quickly when it made landfall in Puerto Rico on September 20, 2017 as a high Category 4. Damage estimates average around $100 billion with a final tally still pending. There was an exodus of Puerto Rican residents to Florida prior to landfall which could help in Florida’s recovery from Irma as a strong percentage of residents displaced from Hurricane Maria will enter the constrained labor force.

There was no loss for lending2b’s lender resulting from those 2 massive hurricanes despite some properties being badly damaged. We have a few safety guards in place that have proven themselves again with those tragedy : House Insurance by owner, Good LTV ratio compare to house value, and finally ongoing relationship with our borrowers who can’t risk to jeopardize this relationship even if they loose on some of the house.

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