Loanify Capital is a private lending fund that invests in asset-backed loan products that do well when the economy is good and when the economy is bad to provide our investors a consistent high-yielding, recession-resistant return
Investing in different types of loan products, similar to what a bank does, has an average annual return higher than the stock market while being almost 4X less risky. According to data from the Yale Endowment Fund, domestic stocks have an expected return of about 10.53% per year with a standard deviation of 20.33%.
Based on the 10-K filings of all public banks over the past 30 years, the lending markets have an expected return of 11.21% with a standard deviation of 5.75%. Due to the way the fractional reserve banking system works here in the United States, banks are required to keep 10% of all deposits in cash while being able to lend out the rest. For the entire financial sector to operate, they need to have a default rate much lower than 10%, which is why the volatility is so low.
There are very clear lending products that do well in various market conditions and economic cycles. Naturally, when the economy is good and interest rates are low, people are taking out loans such as mortgages and personal loans. Now, when interest rates are high or the economy is doing badly, debt consolidation does great.
Not many people are aware of this, but you can make money by giving out loans and also by reducing the amount in the market. This is similar to going long and short on the stock market. For the fund, we adjust our allocation as economic conditions change and the demand for different financial products change to provide our investors a consistent high yielding recession-resistant 19.20% preferred rate of return per year with monthly payouts with the option to reinvest earnings.
The team behind Loanify Capital has an incredible track record. Their deep expertise in the lending space reassured me that my investment was in the right hands. After seeing consistent monthly payouts and reinvesting earnings, I’ve already increased my allocation.
I was new to looking at lending as an investment vehicle, but Loanify Capital’s strategy made perfect sense. My portfolio has remained strong, even during economic turmoil, giving me peace of mind.
The biggest problem for investors trying to take this investment approach is that only lending companies that provide loans and do debt consolidation are able to achieve these high-yielding, recession-resistant returns in the lending markets right now. The reason for this is due to the way funding different financial products works
Funding mortgages or any other kind of loan is mostly straightforward. An investor provides the capital to fund it, and there is a direct transaction. The problem with consolidating debt or reducing the number of loans in the market is that it doesn’t involve giving out actual loans to individuals. It just focuses on restructuring debt by renegotiating terms with creditors. The only way to get exposure to this side of the market is to fund accounts receivables for lending companies that consolidate debt.
By investing in accounts receivables for lending companies that consolidate debt, we’re able to give our investors exposure to lending products that do well when the economy is good and when the economy is bad.
Investors receive a consistent market beating return of 19.20% preferred rate of return per year with monthly payouts. Additionally, investors can reinvest monthly earnings to let their investment compound.
Over the past 5 years, the General Partners of Loanify Capital have consolidated over $1 billion in debt and have funded over $200 million in mortgages.
We don’t take on more capital than we can deploy. As new loans are put into the market and taken out of the market on a monthly basis, it creates new accounts receivable that need to be funded.
Our investors let us know ahead of time how much they would like to invest, and then we do capital calls as new accounts receivable become available. Investors receive a payout of 1.6% per month on the amount they invest for an annualized preferred rate of return of 19.20%. We give priority access to our current investors before taking on any new capital.
I have been investing for over 60 years. The 19.20% preferred rate of return with monthly payouts is unmatched in the financial markets. I appreciate Loanify’s strategic allocation across economic cycles, ensuring my capital is always working for me.
Traditionally, banks and large financial institutions have dominated the lending markets, reaping the benefits of steady, recession-resistant returns. I love how Loanify Capital is giving accredited investors access to these same institutional-grade lending strategies.
