P2P Lending / NFT Lending Forum

Fred93 is correct.

Being in the business, can attest that it is difficult nigh impossible to be excellent at underwriting for multitude of business. Can be good, but not industry leading excellent. Specially, if one has a crowdfunding/crowdlending platform, then niche business lending is most efficient. While "dealflow" is not gangbusters, credit scoring/underwriting is tighter and processes are easier to implement when you lend to specific/known businesses and when they are your expertise. No matter the "Data analysis" there is place for traditional credit committee style approach. Hybrid model has worked the best (my opinion). Also ditto on "yodlee API usage != insta financing". Can't just underwrite well with machine learning, lest one has similar thinking of replacing their healthcare with a robo-doc.

And regarding collateral in business: well there in lies the "expertise" to be honest. Business lending is tough for a reason, but then again returns are better if done correctly.

I forsee consolidation and many more closures for general business lenders.

This has big implications in the real estate crowdfunding market. LC and Prosper are already established through lengthy legal prospectus / S1 filing and now LC post IPO is opening up many other states (blue sky law exempt) so it's moot for them

I fully expect real estate platforms (including ours) to utilize this incredible ruling (congratulations to SEC- finally doing a great thing!) to open up platforms to unaccredited investor

So far only groundfloor.us had RegA filed to allow non-accredited invrstors on short term fix and flip loans

The change may take few months to a year but it has far reaching implications in capital formation/marketplace

Wow! 3%

Ridiculous. For fixed income product that is insane.

A Velocity graph may be? Interesting inference nonetheless if true.

Part of the issue is that SEC isn't approving S-1 filings for this business model I believe. No doubt registration and legal proceedings are onerous. And despite LC going public, blue sky laws aren't so easily bypassed - people in Texas still can't invest directly on platform.

However, I believe you will see real estate platforms to start adopting Regulation A+ which may be a better option to offer non-accredited investors access to debt opportunities. Certainly it is on our menu in the future.

An interesting approach is taken up by https://www.groundfloor.us/" class="bbc_link" target="_blank">https://www.groundfloor.us/

Good luck.

Huge move by LC - there is a long list of borrowers at Sam's club. Online lending is turning into CAC (borrower) race.

https://forum.lendacademy.com/index.php?topic=3037.msg27635#msg27635">Quote"> from: Kombinator on February 17, 2015, 09:40:55 AM

Business loans are more difficult to underwrite and involve underwriting both the borrower and the business. Even more complicated if real estate involved, in which case its the borrower, the business and the real estate (collateral).

I'm with fred, I think more institutional money flowing into LC where banks can leverage cheap underwriting of LC to fund loans from their sheets. LC can keep charging origination fees i.e. their revenue.

Such a thing was already done by Titan Bank I believe. Bryce Mason can comment on this.

It would be interesting to see if previous data supports this. If the interest rates have been coming down per this thread then did the secondary market demonstrate the "bond like" price change in prior quarters?

Yep. Usury laws and default rates rise proportionally.

To be expected though - regression. Too much demand (investors), not enough supply (borrowers).

Max 2.4%? Excited

Great thoughts. Have you seen https://vouch.com/" class="bbc_link" target="_blank">https://vouch.com/

Hi Samy,

Many real estate crowdfunding platforms exist. I believe each have their own "flavor"/types of deals they excel in. Fundrise.com has high end real estate as well as realtymogul.com that does nice commerical real estate. Pure debt deals (house flippers exclusively) can be found at patchofland.com. If you are interested in retail real estate types of deal you can check us out.

This is sufficiently large topic and has to be boxed in the category of real estate you are looking for.