Blackhawk among Trailblazers in Real Estate Peer-to-Peer Lending

Peer-to-peer lending is a means of borrowing funds through online platforms that match borrowers with lenders. Initially, the practice was reserved for entrepreneurs. Both established businesses and start-ups have benefited from this mode of financing. Following the success of P2P lending in business, several companies have decided to use the concept in real estate financing. Notable examples include Blackhawk, Realty Mogul and Patch of Land.

The company offers real estate investors two types of loans: secured and equity.

  • Secured loan: This comes in form of money that is given to an investor in the short term. This term is for a year or less. It is meant to help you purchase real estate property. Once you buy the property, you carry out renovations to improve its value. Thereafter, you resell the same at a higher price and proceed to seek for another investment. In the meantime, you pay back the loan together with interest.
  • Equity deal: In an equity deal, the people who supply you with funds get to own a fraction of the property you buy. The loans have a three year minimum repayment period. Investors will find this attractive because, as the property owner collects rent, they get they’re share of it; additionally, there is also the benefit of property value appreciation.

Patch of Land

The company is also a player in the peer lending market. It too, matches investors with borrowers seeking to buy and carry out investments in property before reselling it. If you are seeking to fund a project with the company, here’s how one may go about it:

  • Submit an application through which you give details about yourself and the desired project.
  • Company officials will get in touch with you for a detailed discussion of the project.
  • You then fill the required paperwork.
  • The company then examines the paper work before appraising it.
  • Ultimately, you receive funding for your project.

Patch of Land expects you to give progress reports. You can borrow amounts between $100,000 and $1,000,000 to be repaid in a period ranging from 1-24 months.

Blackhawk

Blackhawk connects real estate borrowers to lenders. The company steps in to assist borrowers who have been unable to access credit elsewhere. Its loans have a fixed maturity period set between 1-3 years. All you have to do is open an account on the company’s website and begin receiving. Borrowers’ real estate property acts as collateral for the loan in case he or she defaults.

With such companies offering to assist real estate investors, you are at liberty to compare their offers. Choose an appropriate investment vehicle and enjoy great benefits.

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Vincent Garibaldi

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