Tag Archives: crowd funding

Benefits of Marketplace Lending for Real Estate

Real estate marketplace lending is making a huge impact in the world for commercial real estate loans. This form of lending could shift the private lending industry by increasing the capital supply for borrowers while lower their cost and providing a new investors fixed rates between 6% – 10% instead a 1% or less for bank’s time deposits or money market accounts. Marketplace lending platforms is an efficient space for investors and borrowers to meet directly and finalize a mutually beneficial loan. The lenders may be individuals as accredited investors, pooled individuals via private equity funds, or institutional investors. The major benefits of using these platforms include:
• Speed – loan approval is substantially faster then the traditional bank.
• Convenience – online applications and uploading supporting documents from the comfort of your home.
• Reasonable terms – Rate and terms that match your expectations; otherwise your expectations are unrealistic with the market’s supply and demand curves and may be modified until a match is achieved.
Real estate peer loans provide the investors with a secured investment via a recorded first lien position on the borrower’s real estate, and in exchange the borrower will receive the necessary bridge funding required to complete their real estate project. It’s a win – win for both lender and borrower. The loans are usually 1-2 years and guaranteed always by the collateralize subject properties.