Whether you are just getting into Commercial Real Estate or a seasoned investor, you’ll quickly realize each project is unique. Being able to familiarize yourself with the many situations you can come across will open up many options to overcome these hurdles. This is usually in financing and capital stack. At some point you will come across a commercial mortgage broker who can help you identify solutions to your financing needs.
Depending on your project, you may need to talk to a few brokers for your needs. Working with mortgage brokers has its own benefits and disadvantages. They have professional advice that will help you fulfill all the requirements needed in the lending institutions. It goes without say that these people will charge you for the services they provide. Some of them ask for hefty fees that you may ask yourself whether you should really engage them.
With commercial real estate investing, there are other avenues that one can use to get the capital they were looking for. With peer to peer investing, you can be sure of securing affordable loans that are not being offered by the traditional lending institutions. You are also cutting fees that would normally go to the broker.
You can now make the lengthy loan application processes in the traditional lending institutions a thing of the past. With peer to peer lending, you will not need to go to a mortgage broker. After a simple online form and intelligence, this social lending platform matches you with the right program. Here, the lenders are individuals who will agree to loan you the capital you need.
Even individuals with a poor credit history can still secure loans with P2P lending. If you have been turned down and need an alternative, maybe its time to look into Peer-to-peer lending. Log-on to www.Blackhawkcorp.com for more information.
Blackhawk Corp is an invaluable investment service because it does not place money with other funds in order to get managed. Blackhawk is an investment advisor while at the same time it invests in the private equity business with its focus being in the commercial real estate sector. In this sector, you are likely to get an excellent deal if the investment advisor decides to invest in your company.
Blackhawk Investment Corp is here to help you with peer-to-peer lending for real estate development. The team members of this corporation are trained to help match lenders and borrowers. It will help lenders in choosing the right investment as well as the right loan to fund the investment property. It is through Blackhawk Investment Corp and other companies that peer-to-peer lending has been revolutionized. It has helped in cutting down the number of middlemen that stand before acquiring a loan. This cutting deduction of numbers has also made sure that the interest rates that borrowers are supposed to pay back have gone down tremendously.
Blackhawk Investments has made the process of getting loans democratic. Most of these loans are unsecured thus making it easier for people without collateral to get loans and later own property. This investment corporation has also made a niche in the investment and the real estate sector thus making it easier to have more customers than any other lending institutions. Borrowers can get low cost and private loans that have flexible terms that they could not have gotten in other institutions.
Blackhawk Corp is a top peer-to-peer lending institution and due to its latest technology, it is able to connect real estate borrowers and accredited institutions. Before they make the connection they will have shopped for the best solutions for you such that you as the customer will have the best choices. For commercial property, you are able to obtain a loan with less interest rates and the payment period is also the longest.
It is important to look for a good investment advisor; an advisor who will help you to get the best loans. Get an advisor who will be with you all through the investment process and you will be happy if you chose Blackhawk Investments.
Peer-to-peer lending usually abbreviated as P2PL allows individuals or firms to borrow money bypassing the traditional role of borrowing money from the bank. While this kind of lending is similar to peer-to-peer investments, there is a great difference between the two terms in that peer-to-peer lending takes place online on lending websites through various platforms. Loans advanced through P2PL are usually unsecured and are mostly given to individuals rather than companies. Examples of peer-to-peer lending include student loans, commercial or real estate loans, leasing, and factoring. So one may wonder how this kind of lending works and whether or not it has any benefits to both the lender and the borrower.
How it works
The borrower first makes an application to the lender for a loan. The lender then makes an assessment of the credit risk of the borrower among other factors. The higher the risk of default by the borrower, the higher the interest rate, this allows the lenders to mitigate risk of loss. Remember unlike secured investments no security is required for these kinds of loans. The lender also has the privilege of choosing which borrower to lend to and alleviating the total risk by diversifying the investment to other borrowers. Lenders then bid for the loans by buying portions of the loans advanced by the borrowers. The portions can be as low as fifty dollars depending on the kind of portfolio the lender wants to create. The bidding process may slightly differ from one company to another but using the same principle.
Benefits to the borrowers and the lender
To the borrower
- The borrower benefits as he obtains a loan at a lower rate than the rate advanced in banks.
- The time taken to advance the loan to the borrower is shorter as the process is shorter.
- There are fewer overhead costs associated with the loan.
To the lender
He gets higher returns on his money compared to if he had placed the funds in a savings account.
While the whole process of advancing loans is safe, P2P lending involves a certain amount of risk to any lender. However, as earlier mentioned, the best way to mitigate the risk involved is by conducting research on the credit rates assigned by the companies and purchasing several loans so as to diversify your funds. Lenders are advised to invest in reputable companies as it is similar to assuming the same amount of risk as a bank only on a smaller scale.
Marketplace lending is arguably the best invention after the discovery of mobile phones. Marketplace lending is lending in its fastest form and the services keep on getting better. There are no middlemen involved, which makes it cheaper in terms of interest – therefore benefiting the borrower.
The process of marketplace lending is transparent and is a better experience than going to the actual bank. The best thing about marketing lending is that you don’t have to have guarantors. You only need to have a stable job and a stable bank account. In fact, no one will know that you are getting a loan, not even your bank manager.
An ideal marketplace lender is one who gives the clients a favorable interest rate so that the clients will not have to pay back too much extra money. Before the lender gives money to the borrower, there has to be a thorough background and credit check on the borrower. This makes sure that the borrower will not get any money before his credibility and his credit worthiness is clarified.
An investment portfolio is often regarded as incomplete without a commercial real estate asset. Blackhawk encourages investors to partake in the benefits of commercial real estate investing. One of the major reasons why this type of investing is recommended is because it can significantly grow one’s wealth. It provides a tangible source of income and access to liquidity.
Commercial real estate assets are well known for their potential to appreciate in value in comparison to other investment options. Commercial real estate investing features properties whose values go up as a result of various factors. Owning commercial real estate is a desirable feat for most investors as it serves as an income earning form of property that is essential for economic growth.
Blackhawk provided investors with the opportunity to make a commercial real estate investment and enjoy increased wealth through viable funding solutions. Investors can invest in commercial real estate through an online platform that enables them to share yielded returns and make their dream of owning commercial properties come true.
Commercial mortgage brokers are real estate specialists who liaise between lenders and individuals who want to access mortgage loans for funding commercial properties. The commercial mortgage broker helps a client to access a loan and works closely with lenders to give the client the most suitable borrowing solution.
Commercial mortgage brokers are aware of how mortgage loans work in order for them to make it easier for people to get the funding they need. They know which products are available and which ones are most ideal for each investor’s needs.
Mortgage brokers need to be able to communicate effectively and provide the client with valuable information regarding the loan options available. After expressing interest in a mortgage loan application, the broker has the responsibility of assessing eligibility and submitting the application to the lender. The broker further follows up on the process of approval.
Trust deed investing is a popular investment option that offers impressive returns and gives investors security. The basis of trust deed investing is real estate and numerous opportunities exist for both small and established investors. It also serves as a dependable income source with real estate as security.
Commercial real estate is regarded as one of the best ways for investors to balance their investment portfolios and experience significant growth in their wealth.
Real estate investment is one of the best decisions you will ever make. However, you need to make sure that you are doing it all right. You will want to earn money on real estate based on the risks that you are preparing to take. Real investment also means that you will need to minimize on the amount of time that you spend on tending to the property. You must make smart choices before buying the property.
Your ultimate goal in real estate investment should be to get as close as possible to achieve multiple scenarios. When you are taking a leap into the investment, make sure you have a good private lender because some of these ventures cannot be accomplished with your own liquid assets. If you intend to save to acquire a property, you might save for ages before you get an adequate amount.
Before you settle on a private lender, make sure you do a thorough background check so that you don’t end up with a lender who charges too much interest. You should also find one who offers a longer repayment period so that you don’t feel rushed to repay the loan.
P2P loans involve a considerable amount of risk both to the lender and the borrower. Although there are a number of ways of mitigating risk, there aren’t sure methods of avoiding loss of capital invested in such ventures. Below are some of the risks involved in peer-to-peer lending:
This is the biggest risk posed to investors who engage in this kind of investment. Borrower default happens when the borrower does not repay the loan advanced hence the lender’s capital is at risk. Note that the venture relies on the principle of matching savers of money with borrowers i.e. savers who are looking for a better return on their money meet with borrowers who need a loan at a fair interest rate. This risk has led companies to advance secured lending where the borrower has to attach an asset or property equal to the loan advanced by the lender. Therefore if the borrower defaults in payment the attached asset is sold to recover the loan amount. Only traditional peer-to peer-investing companies would advance loans without collateral.
Insolvency of the operator
P2P lending ventures are normally operated by companies on behalf of the lenders. Such companies may become insolvent such that they are not able to manage borrower repayments effectively. To avoid loss of the lender’s money through such scenarios, certain precautions are taken by the operator
- Money that is not for loan advancement is held in separate client money trust account.
- Security provided by the borrower in case of default is held by an independent trustee, separate from the operator.
Changes in prices of the property
The global market continues to change, especially in the realm of real estate. Therefore secured loans attached against property may be affected in case remarkable changes happen in the property market. In such instances some companies may take liability for any loss that may occur in the event the attached property has lower returns than the loan advanced.
Interest rate risk
Just like loans advanced by banks interest rates are bound to reduce or increase once in a while. Lenders are therefore advised to consider this factor before committing any funds to a loan since they would not be able to move capital on loans earning higher interests until the current loan matures. It may not be a major risk but it’s definitely worth factoring in. Lastly P2P investments are not always entitled to compensation in case of any loss. Therefore lenders risk losing capital invested in case of any loss.
Any lender who wants to venture into such investments should make an assessment of such risks before attaching capital with the lending companies. A careful analysis of all such factors will help an investor make a wise decision.
It is important to recognize the role peer-to-peer investing plays in the financial services industry, especially to the majority of the population that cannot afford to secure loans from mainstream lenders like commercial banks. When people have easy access to financial services, they can make use of investment opportunities that they come across. This can in turn lead to improved living and economic empowerment.
Companies that have come out to offer financial services to those who cannot attain them from mainstream banks and other financial institutions have devised packages that can suit the needs of their clients. For example, in peer-to-peer lending, clients do not have to produce collaterals in order to secure loans. Many people, especially from rural areas, may not have the collaterals needed by commercial banks yet they are in need of financial services to enable them to participate in improving their lives and their communities.
The main goal of providing peer-to-peer investing services is to empower people by giving them financial assistance that is easy to work with. The services offered at this level have more benefits to the target group compared to what they can expect from the traditional lenders. P2P lending works more like a personal private loan and the borrower has the opportunity to use it for various reasons. In peer-to peer lending, the whole process takes place online. This enables the borrower to apply for the loan anytime, even in the comfort of their own homes. For the investor, it comes with a higher interest rate of up to 11%. Security for the loan may be a real estate or commercial investment. For borrowers, the loans, which have a fixed maturity period of between one and three years, are important for starting up various development projects.
From peer-to-peer investment services, they get small loans to start economic projects, insurance packages that are suitable for their needs, or they can get financial assistance to use toward buying their homes. These financial packages are often tailored to the conditions and circumstances of the borrower. From whichever side you see it, the borrower or investor’s perspective, peer-to-peer investing is a revolutionary financial service in modern society.
Blackhawk has come up with a form of lending and investment where both the borrower and the lender feel at ease. As you may know, most commercial banks operate on secured investments. That is why borrowers need to have a form of collateral when they apply for a loan from traditional banks. Since its establishment, the Blackhawk has been offering its own form of secured loans to borrowers while lenders get even higher returns from their investments.
Like many financial processes, getting a loan may require you to abide by some rules that your lender has set up. Such rules differ from one lender to another, based on the type of lender you are dealing with, which tend to turn down many borrowers looking to obtain such loans. Some of the available lenders include:
- Social lending networks
- Families and friends
- Financial institutions
- Commercial banks
Of the listed lenders, Blackhawk takes advantage of the first option, lending money to borrowers without stringent rules experienced when dealing with banks. The style of peer-to-peer investing from Blackhawk has come at the right time to fill the gap left by banks in the commercial and residential mortgage market. The returns are higher for investors, in fact, up to 11% annual interest rate is achievable. For borrowers, they get the money in time to invest in various projects without strict rules as experienced with banks.
Whatever your reason for getting a loan, you need to prove to your lender that you will be able to repay your loan. That is why some lenders include collaterals as part of their lending procedure. If you fail to fail to repay the loan as agreed, the lender has the right to seize the collateral. In Blackhawk’s strategy, the borrower’s real estate serves as collateral for the loan.
It is true that even the most intelligent investors land themselves in financial turmoil. These cases may include the need for quick money to settle a car bill, pay house rent, or settle a financial emergency. In such moments, one may need access to loans to aid in the clearance of debts. Advanced methods in financial services have lead to the birth of peer-to-peer investing, where you do not need to go through the traditional banks to get your loan. Through P2P lending, you apply online in a secure environment and get your loan in the shortest time possible through advanced matching algorithms.
P2P lending has all the qualities of a good private loan
Through online application, you can get access to short-term loans to help you settle immediate cash needs. The loan may or may not require collateral depending on the service and you get it instantly after approval. Approval takes place first and if you have history of bad debt you don’t need to worry. Once you meet the criteria required for eligibility, the lending company can assist you through the application process.
In order to be eligible for online peer-to-peer loans, you need to fulfill the following conditions:
- The lender may or may not require a collateral
- The lender checks credit history
- The lender may want to know current bank statements
Once you meet the above conditions, you can safely apply for fast and secure P2P loans.
Unlike traditional methods of applying for loans, peer-to-peer lending comes with the following benefits:
- It has higher approval rate
- No bad debt limitations
- Faster approval
- Online application and processing
- It is a form of secured investment for investors
In addition, if you repay your loan within the stipulated time or earlier, you may become eligible to future loans with decreased interest rate; although this is at the discretion of the lender. It also gives you an opportunity to apply for loans in bigger amounts than the previous one. Using your online loan responsibly can also improve your credit score. From the benefits mentioned, it is clear that peer-to-peer lending is much better than the traditional procedure where you have to potentially wait for days for approval. Although the loans may have higher interest rates on repayment, this method offers more advantages that its downsides.