MIDAS STOCK TIPS: LendInvest’s 11.5% stake may not be too good to be true
The latest bond from a real estate company LendInvest is surprisingly generous. With an interest rate of 11.5 percent per year, it may seem too good to be true to investors.
A closer look offers some reassurance. LendInvest uses smart technology to quickly offer mortgages and loans. The conditions are not cheap, but they do offer a solution for professional real estate investors who want to close deals quickly, often after an auction.
With a 15-year history, LendInvest has issued several bonds in recent years, most of which paid interest between 5 and 6 percent.
Generous: LendInvest’s deal is open to both large institutions and individuals, with the same terms for both
The latest transaction offers an interest rate of 11.5 percent for one simple reason: that’s the kind of interest rate that big investors demand for bonds.
And LendInvest’s deal is open to both large institutions and individuals, with the same terms for both.
The bonds mature in 2026, trade on the London Stock Exchange’s retail bond market and interest is paid twice a year.
Importantly, the transaction is backed by a portfolio of bridge loans, an area that LendInvest knows particularly well.
Midas judgment: LendInvest’s bonds are not for the cautious, but the interest payments are attractive and easily beat inflation and other savings rates. An attractive point for adventurous investors.
Traded on: LSE retail bond market ticker: LIV4 Contact: leninvest.com or 020 3747 4188