1. Business

LM Funding, business built on condo fee delinquencies, struggles as real estate recovers

LM Funding CEO Bruce Rodgers. [Courtesy LM Funding]
LM Funding CEO Bruce Rodgers. [Courtesy LM Funding]
Published Apr. 3, 2017

As the real estate market grows stronger, LM Funding finds its business getting tougher.

Revenues for 2016 fell to $4.9 million from $7 million in 2015, while in the fourth quarter revenues dropped to $881,000 from $1.7 million. The company reported a net loss of $2.4 million last year and $524,000 in the fourth quarter.

"Our revenue results for the fourth quarter continued to be impacted by the reduction of distressed real estate transactions in Florida," stated Bruce Rodgers, founder and CEO of LM Funding.

Founded in 2008 at the start of the foreclosure crisis, Tampa's LM Funding advances condominium associations money for maintenance and repairs in exchange for the right to collect delinquent fees, interest and late fees from unit owners. Shares closed down 2.6 percent Monday at $4.01, less than half what LM Funding traded at when it went public.